Sanmina 2025 Q3 Earnings Strong Performance with Net Income Growth of 33.2%

Sanmina (SANM) reported its fiscal 2025 Q3 earnings on Jul 28th, 2025. Sanmina exceeded expectations by delivering strong financial results for Q3 2025. The company reported revenue of $2.04 billion, surpassing previous forecasts and showcasing its operational resilience. Looking ahead, Sanmina's guidance for the fourth quarter remains in line, with projected revenue between $2.0 billion and $2.1 billion. This stability in guidance demonstrates the company's ability to navigate economic challenges effectively.

Revenue
Sanmina's total revenue for Q3 2025 rose by 10.9% to $2.04 billion, compared to $1.84 billion in Q3 2024. The Integrated Manufacturing Solutions segment led the growth, contributing $1.65 billion to the total revenue, while the Components, Products, and Services segment added $422.39 million. Intersegment transactions resulted in a deduction of $29.23 million, bringing the net sales to the reported figure, reflecting a robust performance across its business operations.

Earnings/Net Income
Sanmina's earnings per share (EPS) increased 37.6% to $1.28 in Q3 2025 from $0.93 in Q3 2024, indicating strong earnings momentum. Additionally, net income reached $72.89 million, marking a 33.2% increase from $54.74 million in the same quarter the previous year. The positive EPS growth highlights Sanmina's successful execution and profitability improvement.

Price Action
The stock price of Sanmina slightly decreased by 0.04% during the most recent trading day, experienced a 3.58% drop during the past week, but showed a 3.25% increase month-to-date.

Post Earnings Price Action Review
The strategy of purchasing Sanmina shares after earnings beats and holding them for 30 days yielded impressive returns, with a 257.92% gain, significantly outpacing the benchmark return of 88.74%. This strategic approach achieved a Sharpe ratio of 0.83, indicating favorable risk-adjusted returns, and managed risk effectively with a maximum drawdown of 0%. Despite experiencing a 35.26% peak-to-trough decline during the holding period, the overall compound annual growth rate (CAGR) stood at 29.21%, showcasing consistent growth throughout the backtested period.

CEO Commentary
Jure Sola, Co-Founder, Executive Chairman & CEO, expressed satisfaction with the company's execution and customer service, highlighting that revenue, non-GAAP gross margin, and non-GAAP EPS exceeded expectations. He emphasized the company's solid customer base across various sectors and anticipated good growth in fiscal year 2026.

Guidance
For Q4, Sanmina forecasts revenue between $2.0 billion to $2.1 billion, with non-GAAP gross margins ranging from 8.7% to 9.2%. The company expects non-GAAP diluted EPS between $1.52 and $1.62 and plans capital expenditures around $65 million. Sanmina remains focused on achieving 6% to 8% growth for fiscal year 2025, prioritizing operational execution and customer satisfaction.

Additional News
Sanmina is set to acquire ZT Systems, a strategic move expected to significantly enhance its revenue, potentially adding $5 billion to $6 billion annually. This acquisition reflects Sanmina's commitment to expanding its operations and capitalizing on growth opportunities. Additionally, Sanmina has executed share repurchases, buying back 0.2 million shares for $13 million, indicating confidence in its financial position and dedication to shareholder returns. CEO Jure Sola's leadership continues to drive the company forward, emphasizing operational efficiency and favorable business conditions.