Sanmina (NASDAQ:SANM) Releases Quarterly Earnings Results, Beats Estimates By $1.16 EPS

Sanmina (NASDAQ:SANM) announced its earnings results on Monday. The electronics maker reported $4.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.27 by $1.16, FiscalAI reports. The firm had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.48 billion. Sanmina had a net margin of 2.60% and a return on equity of 24.00%. Sanmina’s revenue was up 84.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.67 EPS. Sanmina updated its Q1 2027 guidance to 3.500-3.850 EPS and its FY 2027 guidance to 15.500-17.500 EPS.

Here are the key takeaways from Sanmina’s conference call:

• Sanmina exceeded its fiscal 2026 outlook, with revenue up 79% to $14.53 billion, operating margin rising to 7.4%, and non-GAAP EPS more than doubling to $13.28. Fourth-quarter results included about $30 million in tariff recoveries, which added roughly 75 basis points to operating margin and $0.42 to EPS and are not expected to recur.
• For fiscal 2027, the company expects revenue of $17.5 billion–$19.5 billion and EPS of $15.50–$17.50, with operating margin of 7.0%–7.5%. Management said growth will be weighted toward the second half, and noted the wide guidance range reflects new-program execution risks and supply-chain uncertainty.
• Cloud & AI Systems revenue is forecast at $7.5 billion–$9.0 billion in fiscal 2027; Helios shipments have begun in small quantities, and a second platform is included in guidance. A third platform is under discussion but excluded from the outlook, leaving potential upside if it progresses.
• Fiscal 2026 operating cash flow was strong at $944 million, while management plans $450 million in fiscal 2027 capital expenditures to support growth. Inventory rose 131% year over year, and the company expects working capital needs and net leverage to increase as it scales the business.

Sanmina Stock Up 2.3%

NASDAQ:SANM opened at $159.01 on Wednesday. Sanmina has a twelve month low of $118.10 and a twelve month high of $288.68. The stock has a fifty day simple moving average of $191.55 and a 200-day simple moving average of $190.44. The company has a market cap of $8.52 billion, a price-to-earnings ratio of 23.23, a price-to-earnings-growth ratio of 0.41 and a beta of 1.72. The company has a current ratio of 1.78, a quick ratio of 1.06 and a debt-to-equity ratio of 0.71.

Key Sanmina News

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported Q4 revenue of $3.86 billion and non-GAAP EPS of $4.43, beating analyst estimates of $3.48 billion and $3.27, respectively. Revenue rose 84% year over year. Sanmina fiscal 2026 results
• Positive Sentiment: Management forecast fiscal 2027 revenue of $17.5 billion–$19.5 billion and EPS of $15.50–$17.50, both above consensus. The outlook reflects expected growth in AI and cloud systems, alongside contributions from the broader business and ZT Systems. Earnings and outlook
• Positive Sentiment: AI and cloud systems sales reportedly surged, while Sanmina’s core business also grew—suggesting the earnings strength was not limited to AI-related demand. AI and core business growth
• Negative Sentiment: JPMorgan cut its price target to $230 from $270 and kept a Neutral rating. The reduction may temper optimism, although the target remains above the $155.43 reference price in the supplied market data. JPMorgan price target update

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. JPMorgan Chase & Co. decreased their target price on Sanmina from $270.00 to $230.00 and set a “neutral” rating for the company in a research report on Tuesday. Zacks Research lowered Sanmina from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Wall Street Zen raised shares of Sanmina from a “buy” rating to a “strong-buy” rating in a report on Sunday, October 11th. Finally, Weiss Ratings cut Sanmina from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $188.33.

Sanmina Company Profile

Sanmina Corporation is a provider of integrated manufacturing solutions for companies that develop complex electronic, optical, and electromechanical products. Its services span product design and engineering, supply-chain management, manufacturing, and logistics, as well as repair and other aftermarket support. The company serves customers in markets that include communications networks, cloud and data-center infrastructure, medical and life sciences, automotive, industrial equipment, and aerospace and defense.