Sanmina Reports Second Quarter Fiscal 2026 Financial Results
Rhea-AI Summary
Sanmina (NASDAQ: SANM) reported Q2 fiscal 2026 results and set FY26 guidance while authorizing a new share repurchase program.
Key Q2 metrics: Revenue $4.01B, GAAP operating margin 3.9%, GAAP diluted EPS $1.70, non-GAAP diluted EPS $3.16, free cash flow $342M, ending cash $1.58B. Board authorized up to $600M in buybacks with no expiry.
AI-generated analysis. Not financial advice.
Positive
- Revenue $4.01B in Q2
- Non-GAAP diluted EPS $3.16 for Q2
- Free cash flow $342M in Q2
- $600M new share repurchase authorization
Negative
- GAAP operating margin 3.9% versus non-GAAP 6.4% (250 bps gap)
News Market Reaction – SANM
On the day this news was published, SANM gained 14.56%, reflecting a significant positive market reaction. Argus tracked a peak move of +14.1% during that session. Argus tracked a trough of -9.3% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $1.60B to the company's valuation, bringing the market cap to $12.59B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SANM gained 6.74% with elevated volume. Peers were mixed: TTMI rose 8.99%, PLXS and OSIS posted modest gains, while OLED slipped 0.88%, indicating a stock-specific reaction rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 26 | Earnings release | Positive | -21.6% | Q1 FY26 results and Q2 outlook with detail on cash flow and repurchases. |
| Nov 03 | Earnings release | Positive | +16.6% | FY25 and Q4 results plus Q1 FY26 guidance and ZT Systems update. |
| Jul 28 | Earnings release | Positive | +22.8% | Q3 FY25 results with strong margins, cash flow and Q4 guidance. |
| Apr 28 | Earnings release | Positive | -2.1% | Q2 FY25 results, robust cash generation and Q3 financial outlook. |
| Jan 27 | Earnings release | Positive | +3.2% | Q1 FY25 results, cash metrics and expanded share repurchase authorization. |
Earnings news has produced large but mixed reactions, with several strong rallies and at least one sharp selloff, suggesting sentiment around results and guidance has been volatile.
Recent earnings-related releases for Sanmina show recurring themes of revenue growth, expanding non-GAAP margins and solid cash generation. Past events on Nov 3, 2025 and Jul 28, 2025 saw strong positive moves after results and outlook, while the Jan 26, 2026 earnings release drew a sharp negative reaction. Today’s Q2 FY26 results and updated FY26 outlook, plus a new repurchase authorization, fit into this pattern of significant price responses to earnings updates.
Historical Comparison
In the past year, Sanmina’s 5 earnings releases moved the stock an average of 3.77%. Today’s 6.74% move sits above that typical reaction but not as an extreme outlier.
Across recent earnings, summaries highlight growing revenue, expanding non-GAAP margins, strong operating cash flow and recurring share repurchases, indicating a consistent focus on profitability and capital returns.
Market Pulse Summary
The stock surged +14.6% in the session following this news. A strong positive reaction aligns with Sanmina’s history of sizable moves on earnings, where average same-tag reactions were 3.77% and some prior reports saw double-digit gains. The combination of Q2 beats versus outlook, raised fiscal 2026 guidance and a new $600 million repurchase authorization provided multiple supportive catalysts. Investors tracking this pattern may also watch how elevated volume of 1.95x average behaves after results settle.
Key Terms
non-GAAP financial
free cash flow financial
AI-generated analysis. Not financial advice.
Board of Directors Authorize
Second Quarter Fiscal 2026 Financial Highlights
- Revenue:
$4.01 billion - GAAP operating margin:
3.9% - GAAP diluted EPS:
$1.70 - Non-GAAP(1) operating margin:
6.4% - Non-GAAP(1) diluted EPS:
$3.16
Additional Highlights
- Cash flow from operations:
$399 million - Free cash flow(2):
$342 million - Share repurchases: 1.1 million shares for
$160 million - Ending cash and cash equivalents:
$1.58 billion
(1) | See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release. |
(2) | Free cash flow is defined as net cash provided by operating activity adjusted for net purchases of property and equipment. See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release. |
"We delivered great results for the second quarter. Revenue, non-GAAP operating margin and non-GAAP diluted EPS all exceeded our outlook," stated Jure Sola, Chairman and CEO of Sanmina Corporation. "ZT Systems revenue significantly exceeded our expectations, driven by strong execution and customer demand, resulting in new accelerated compute shipments previously expected in the second half of the year to shift into the second quarter. In addition, core Sanmina grew
"Based on our results for the first half of the year and our outlook for the third quarter, we expect to deliver revenue in the range of
Third Quarter Fiscal 2026 Outlook
- Revenue between
$3.2 billion $3.5 billion - Non-GAAP operating margin between
6.4% to6.9% * - Non-GAAP diluted earnings per share between
$2.55 $2.85
Fiscal Year 2026 Outlook
- Revenue between
$13.7 billion $14.3 billion - Non-GAAP operating margin between
6.3% to6.6% * - Non-GAAP diluted earnings per share between
$10.75 $11.35
*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort.
Board of Directors Authorize Share Repurchase Program
Sanmina's Board of Directors has authorized the repurchase of up to
"Our Board's new share repurchase authorization reflects our strong balance sheet and free cash flow generation. This gives us the capacity to continue returning capital to shareholders while investing in the business and maintaining our leverage within our target range, consistent with our capital allocation framework," stated Jon Faust, Executive Vice President and Chief Financial Officer of Sanmina.
Safe Harbor Statement
The statements above relating to our financial outlook for the third quarter fiscal 2026 and fiscal year 2026 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including the risk that the integration of and expected benefits from the ZT Systems acquisition may not be realized or may take longer to realize than anticipated; adverse changes in the key markets we target, in particular the cloud and AI infrastructure sectors; the impact of recent or future changes in tariffs and trade policy, which may adversely affect our costs, supply chain, and customer demand; our reliance on a limited number of customers for a substantial portion of our sales; risks arising from our international operations and expansion into new geographic markets; geopolitical uncertainty, including relating to the conflict in the
The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.
Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the second quarter and outlook for the third quarter of fiscal 2026 on Monday, April 27, 2026 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference call will also be webcast live over the Internet. You can log on to the live webcast at Q2'26 Earnings. Additional information in the form of a slide presentation is available on Sanmina's website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 18902#.
About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.
Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610
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Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) (Unaudited) | |||
March 28, | September 27, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,575,517 | $ 926,267 | |
Accounts receivable, net | 2,229,744 | 1,400,129 | |
Contract assets | 473,144 | 425,944 | |
Inventories | 3,026,666 | 1,988,462 | |
Prepaid expenses and other current assets | 306,365 | 124,656 | |
Total current assets | 7,611,436 | 4,865,458 | |
Property, plant and equipment, net | 993,331 | 682,354 | |
Deferred income tax assets | 326,415 | 171,218 | |
Goodwill | 358,783 | 30,386 | |
Other assets | 379,124 | 108,757 | |
Total assets | $ 9,669,089 | $ 5,858,173 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 2,508,961 | $ 1,578,895 | |
Accrued liabilities | 312,473 | 179,605 | |
Deferred revenue and customer advances | 1,231,292 | 878,474 | |
Accrued payroll and related benefits | 217,330 | 167,541 | |
Short-term debt, including current portion of long-term debt | 172,000 | 17,500 | |
Total current liabilities | 4,442,056 | 2,822,015 | |
Long-term liabilities: | |||
Long-term debt | 1,999,762 | 282,974 | |
Other liabilities | 615,462 | 214,021 | |
Total long-term liabilities | 2,615,224 | 496,995 | |
Stockholders' equity | 2,611,809 | 2,539,163 | |
Total liabilities and stockholders' equity | $ 9,669,089 | $ 5,858,173 | |
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
March 28, | March 29, | March 28, | March 29, | ||||
Net sales | $ 4,013,271 | $ 1,984,080 | $ 7,202,964 | $ 3,990,428 | |||
Cost of sales | 3,659,480 | 1,807,845 | 6,606,811 | 3,646,278 | |||
Gross profit | 353,791 | 176,235 | 596,153 | 344,150 | |||
Operating expenses: | |||||||
Selling, general and administrative | 113,549 | 76,313 | 228,435 | 147,158 | |||
Research and development | 7,991 | 7,316 | 16,649 | 14,340 | |||
Acquisition, integration and others | 72,584 | — | 115,947 | — | |||
Amortization of intangibles | 1,865 | — | 3,052 | — | |||
Restructuring | 794 | 990 | 1,464 | 2,426 | |||
Total operating expenses | 196,783 | 84,619 | 365,547 | 163,924 | |||
Operating income | 157,008 | 91,616 | 230,606 | 180,226 | |||
Interest income | 8,433 | 3,723 | 16,491 | 7,119 | |||
Interest expense | (32,138) | (4,979) | (56,860) | (9,980) | |||
Other income (expense), net | (2,165) | (1,955) | 2,483 | (2,684) | |||
Interest and other, net | (25,870) | (3,211) | (37,886) | (5,545) | |||
Income before income taxes | 131,138 | 88,405 | 192,720 | 174,681 | |||
Provision for income taxes | 33,323 | 17,890 | 43,150 | 33,282 | |||
Net income before noncontrolling interest | 97,815 | 70,515 | 149,570 | 141,399 | |||
Less: Net income attributable to noncontrolling interest | 4,169 | 6,307 | 6,638 | 12,188 | |||
Net income attributable to common shareholders | $ 93,646 | $ 64,208 | $ 142,932 | $ 129,211 | |||
Net income attributable to common shareholders per share: | |||||||
Basic | $ 1.72 | $ 1.18 | $ 2.63 | $ 2.38 | |||
Diluted | $ 1.70 | $ 1.16 | $ 2.58 | $ 2.32 | |||
Weighted-average shares used in computing per share amounts: | |||||||
Basic | 54,331 | 54,405 | 54,245 | 54,304 | |||
Diluted | 55,108 | 55,511 | 55,313 | 55,681 | |||
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) | |||||||
Three Months Ended | |||||||
March 28, | December 27, | March 29, | |||||
GAAP Operating income | $ 157,008 | $ 73,598 | $ 91,616 | ||||
GAAP Operating margin | 3.9 % | 2.3 % | 4.6 % | ||||
Adjustments: | |||||||
Stock compensation expense (1) | 24,066 | 23,620 | 15,790 | ||||
Amortization of inventory fair value adjustment (2) | — | 49,000 | — | ||||
Amortization of intangible assets (3) | 2,332 | 1,720 | — | ||||
Acquisition, integration and others (4) | 72,584 | 43,363 | 2,091 | ||||
Distressed customer charges (5) | — | — | 159 | ||||
Restructuring | 794 | 670 | 990 | ||||
Non-GAAP Operating income | $ 256,784 | $ 191,971 | $ 110,646 | ||||
Non-GAAP Operating margin | 6.4 % | 6.0 % | 5.6 % | ||||
GAAP Net income attributable to common shareholders | $ 93,646 | $ 49,286 | $ 64,208 | ||||
Adjustments: | |||||||
Operating income adjustments (see above) | 99,776 | 118,373 | 19,030 | ||||
Legal (6) | — | (3,745) | — | ||||
Gain on sale of investment (7) | — | (4,710) | — | ||||
Loss on debt extinguishment | — | 1,345 | — | ||||
Adjustments for taxes (8) | (19,497) | (28,199) | (5,201) | ||||
Non-GAAP Net income attributable to common shareholders | $ 173,925 | $ 132,350 | $ 78,037 | ||||
GAAP Net income attributable to common shareholders per share: | |||||||
Basic | $ 1.72 | $ 0.91 | $ 1.18 | ||||
Diluted | $ 1.70 | $ 0.89 | $ 1.16 | ||||
Non-GAAP Net income attributable to common shareholders per share: | |||||||
Basic | $ 3.20 | $ 2.44 | $ 1.43 | ||||
Diluted | $ 3.16 | $ 2.38 | $ 1.41 | ||||
Weighted-average shares used in computing per share amounts: | |||||||
Basic | 54,331 | 54,160 | 54,405 | ||||
Diluted | 55,108 | 55,519 | 55,511 | ||||
(1) | Stock compensation expense | ||||||
Cost of sales | $ 5,535 | $ 5,995 | $ 4,931 | ||||
Selling, general and administrative | 18,127 | 17,274 | 10,580 | ||||
Research and development | 404 | 351 | 279 | ||||
Total | $ 24,066 | $ 23,620 | $ 15,790 | ||||
(2) | Relates to the amortization of the fair value step up on inventory from the ZT acquisition. | ||||||
(3) | Relates to amortization of intangible assets acquired from the ZT acquisition. | ||||||
(4) | Q2'26 results include a | ||||||
(5) | Relates to accounts receivable and inventory write-downs or recoveries associated with distressed customers. | ||||||
(6) | Represents expenses, charges and recoveries associated with certain legal matters. | ||||||
(7) | Relates to gain on sale of equity interest. | ||||||
(8) | Adjustments for taxes include the tax effects of the various adjustments we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items. | ||||||
Sanmina Corporation Condensed Consolidated Cash Flow (in thousands) (GAAP) (Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
March 28, | March 29, | March 28, | March 29, | |||||
Net income before noncontrolling interest | $ 97,815 | $ 70,515 | $ 149,570 | $ 141,399 | ||||
Depreciation and intangibles amortization | 47,085 | 28,208 | 86,616 | 60,053 | ||||
Amortization of inventory fair value adjustment | — | — | 49,000 | — | ||||
Deferred income taxes | 49,628 | (802) | 46,397 | 4,534 | ||||
Change in fair value of contingent consideration | 59,000 | — | 59,000 | — | ||||
Other, net | 25,007 | 14,723 | 46,032 | 30,541 | ||||
Net change in net working capital | 120,223 | 44,214 | 140,871 | (15,731) | ||||
Cash provided by operating activities | 398,758 | 156,858 | 577,486 | 220,796 | ||||
Purchases of investments | — | (14,340) | — | (14,640) | ||||
Proceeds from sales of investments | — | 49,309 | 8,710 | 49,309 | ||||
Net purchases of property, plant and equipment | (56,621) | (30,647) | (143,390) | (47,568) | ||||
Cash paid for businesses acquisition, net of cash acquired | (1,132) | — | (1,356,933) | — | ||||
Cash used in investing activities | (57,753) | 4,322 | (1,491,613) | (12,899) | ||||
Proceeds from long-term debt | — | — | 2,200,000 | — | ||||
Repayment of borrowings | — | (4,375) | (301,875) | (8,750) | ||||
Repurchases of common stock | (159,450) | (84,340) | (239,244) | (100,453) | ||||
Payments for tax withholding on stock-based compensation | (22,360) | (29,312) | (56,075) | (37,655) | ||||
Debt issuance costs | — | — | (28,703) | — | ||||
Cash provided by (used in) financing activities | (181,810) | (118,027) | 1,574,103 | (146,858) | ||||
Effect of exchange rate changes | (225) | 1,165 | (412) | (179) | ||||
Net change in cash, cash equivalents and restricted cash equivalents | $ 158,970 | $ 44,318 | $ 659,564 | $ 60,860 | ||||
Free cash flow: | ||||||||
Cash provided by operating activities | $ 398,758 | $ 156,858 | $ 577,486 | $ 220,796 | ||||
Net purchases of property, plant and equipment | (56,621) | (30,647) | (143,390) | (47,568) | ||||
$ 342,137 | $ 126,211 | $ 434,096 | $ 173,228 | |||||
Schedule 1
The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.
Management excludes these items principally because such charges or benefits are not directly related to the Company's ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company's operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company's strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management's approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company's liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company's performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.
Additional information regarding the economic substance of each exclusion, management's use of the resultant non-GAAP measures, the material limitations of management's approach and management's methods for compensating for such limitations is provided below.
Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company's results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company's core results with those of its competitors.
Restructuring, Acquisition, Integration and Other Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities, and those associated with the acquisition, integration and other expenses of acquired businesses including fair value adjustments related to contingent consideration liability, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company's competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company's core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company's competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Therefore, management also reviews GAAP results including these amounts.
Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company's liquidity. In addition, given the fact that the Company's competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors.
Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company's liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors because the Company's competitors complete acquisitions at different times and for different amounts than the Company.
Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company's ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company's competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.
Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company's core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.
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SOURCE Sanmina Corporation