SANM

Earnings estimates for Sanmina Corporation SANM for fiscal 2026 and fiscal 2027 have moved up 5.97% to $11.89 and 7.23% to $13.94, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiments about the stock’s growth potential. Image Source: Zacks Investment Research Sanmina is benefiting from the rapid expansion of its cloud and AI infrastructure business. In the third quarter of fiscal 2026, communications networks and cloud & AI infrastructure generated $2.15 billion of revenues, up 173.2% year over year. The growth is driven by multiple factors. Sanmina has been participating in multiple layers of AI infrastructure such as general-purpose computing, storage, high-performance networking, switching, routing and optical systems. Such broad portfolio offerings give the company greater exposure to opportunities as hyperscalers and other data-center customers expand infrastructure to support surging AI workloads. Sanmina’s broad end-to-end capabilities boost its competitive edge alongside major electronics manufacturing services peers such as Jabil and Flex.The integration of ZT Systems is another major positive driver. Sanmina is combining ZT Systems’ large-scale systems integration capabilities with its own subassembly and manufacturing expertise. This combination allows it to offer customers a broader portfolio, spanning components, subassemblies and ensuring complete system integration. The integration process is going as planned. The company has already secured orders for next-generation compute programs from hyperscale and OEM clients. Rather than restricting its role to contract manufacturing, Sanmina is focusing on participating in the complete product development cycles. Its capability of supporting multiple stages of a complex product allows Sanmina to capture a larger portion of enterprise spending. End to end support from a single vendor also reduces complexity for customers. The vertical integration boosts both revenue and customer stickiness. As Sanmina becomes deeply integrated into enterprises’ supply chain, its growth prospects improve significantly. Sanmina continues to generate healthy operating cash flow while maintaining substantial financial flexibility to support strategic investments. At the end of the third quarter of fiscal 2026, the company held $1.84 billion in cash and cash equivalents and had no borrowings outstanding under its $1.5 billion revolving credit facility, providing total liquidity of approximately $4 billion.As of the third quarter of fiscal 2026, the company’s current ratio stands at 1.78. A current ratio higher than unity implies that Sanmina is well positioned to pay off its short-term debt obligations. Sanmina has gained 68.1% in the past year months compared with the Electronic Manufacturing Services industry’s growth of 54.3%. It has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period. Image Source: Zacks Investment Research Among its competitors, the company has outperformed Jabil, Inc. JBL but underperformed Flex Ltd. FLEX. Jabil has increased 51.1%, while Flex has gained 103.7%. From a valuation standpoint, SANM appears to be relatively cheaper than the industry and lower than its mean. Going by the price/earnings ratio, the company’s shares currently trade at 14.28 forward earnings, lower than 18.08 for the industry and its mean of 18.5. Image Source: Zacks Investment Research AI-driven demand, ZT Systems integration, next-generation accelerated-compute programs are major growth driver for Sanmina. Healthy cash flow growth underscores efficient capital management. Upward estimate revision highlights increasing investors’ confidence in the stock's growth potential. A diverse portfolio and a vertically integrated manufacturing framework are major advantages. Hence, with a Zacks Rank #1 (Strong Buy), Sanmina appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Plexus (PLXS). Shares have added about 1.4% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Plexus reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.32 compared with the year-ago quarter’s $1.90. The figure beat the Zacks Consensus Estimate of $2.10 per share. Management expected non-GAAP EPS to be in the band of $2.02-$2.18.Revenues increased 28.1% to $1.305 billion and surpassed the consensus mark of $1.228 billion by 6.3%. Management expected revenues to be between $1.2 billion and $1.25 billion. Broad end-market demand, new program ramps and Industrial strength drove the performance. In the fiscal third quarter, Plexus announced 31 manufacturing program wins, which are estimated to contribute $255 million in annualized revenues once fully ramped into production. Aerospace/Defense revenues climbed 27.1% year over year and 10% sequentially to $233 million, accounting for 18% of the total. Broad demand and strong operational execution supported revenue growth. Fiscal 2026 revenues are now projected to grow more than 20%, buoyed by defense demand, while fiscal fourth-quarter revenues are expected to be flat.  Healthcare/Life Sciences revenues increased 15% year over year and 2% sequentially to $483 million, contributing 37% of total revenues. Program ramps remained a growth driver. Fiscal 2026 revenues are projected to be in the high teens, while fiscal fourth-quarter revenues are expected to be flat.  Industrial revenues surged 42.2% year over year and 23% sequentially to $589 million. The sector represented 45% of total revenues, up from 41% in both the prior quarter and the year-ago period.Semiconductor capital equipment and broader industrial demand and program ramps supported the growth. Management expects Industrial revenues to rise in the high-single to low-double digits sequentially in the fiscal fourth quarter while overall fiscal 2026 revenues are projected to grow more than 20%.  Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $533.1 million, $473 million and $222 million, respectively. Revenues from the Americas increased 37.2% year over year to $428 million. Asia-Pacific revenues increased 30.4% while EMEA revenues declined 6.6%.The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter. Gross profit on a GAAP basis was up 27.2% year over year to $131.4 million. Gross margin was 10.1%, unchanged from the year-ago quarter. Selling and administrative expenses increased 41.1% from the year-ago quarter’s actuals to $70.1 million.Adjusted operating margin expanded 30 basis points to 6.3%. As of July 4, 2026, Plexus had cash & cash equivalents worth $314.1 million compared with $303.1 million as of April 4. Long-term debt and finance lease obligations, net of the current portion were $91.6 million as of July 4, 2026, compared with $91 million as of April 4. For the quarter under review, cash flows generated from operations were $25.9 million. Plexus reported a free cash outflow of $0.7 million after incurring capital expenditures of $26.6 million. The company repurchased $20.6 million worth of shares at an average price of $258.75 per share under its repurchase program in the fiscal third quarter. Out of the $100 million authorization, $21.4 million remains available. For the fiscal fourth quarter, revenues are projected between $1.33 billion and $1.38 billion. At the midpoint, the revenue outlook implies a 4% sequential rise and 28% year-over-year growth. Non-GAAP EPS is expected to be in the band of $2.47-$2.63, while adjusted operating margin is forecasted in the 6.1-6.5% range.Management now expects fiscal 2026 revenue growth above 20% and adjusted operating margin greater than 6%. Fiscal 2027 revenue growth is expected to exceed the 9-12% goal, alongside further margin expansion.The stronger outlook also requires more working capital investments. Management now anticipates fiscal 2026 free cash flow usage.  Earlier, Plexus projected free cash flow to be $50-$75 million for fiscal 2026. The company expects to return to meaningful free cash flow generation early in fiscal 2027 In the past month, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 60.95% due to these changes. At this time, Plexus has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Plexus has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Plexus is part of the Zacks Electronics - Manufacturing Services industry. Over the past month, Sanmina (SANM), a stock from the same industry, has gained 10.8%. The company reported its results for the quarter ended June 2026 more than a month ago. Sanmina reported revenues of $3.46 billion in the last reported quarter, representing a year-over-year change of +69.7%. EPS of $3.31 for the same period compares with $1.53 a year ago. Sanmina is expected to post earnings of $3.20 per share for the current quarter, representing a year-over-year change of +91.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Sanmina has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plexus Corp. (PLXS) : Free Stock Analysis Report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sanmina (SANM) reported third quarter fiscal 2026 results that surpassed earnings and revenue estimates, and management raised its full year 2026 outlook. Investors are weighing what this updated guidance means for the stock. Sanmina's share price has reacted strongly to these results, with a 1-day share price return of 3.94% and a year to date share price return of 24.70%. The 1-year total shareholder return of 69.85% and very large 5-year total shareholder return above 4x suggest longer term momentum has been positive, even though the 90 day share price return is down 24.54%. Scan beyond Sanmina and see how other companies exposed to cloud and AI infrastructure are setting up right now with a curated list of 55 AI infrastructure stocks. Sanmina now appears to be a stronger, more focused business following its AI driven quarter and upgraded outlook. After such a sharp share price run, the key question is whether the stock’s current valuation still offers enough potential upside for new buyers. The most followed valuation narrative pegs Sanmina's fair value at $260 per share, compared with the latest close of $198.64, and anchors that view in a detailed set of growth and profitability assumptions that go well beyond the recent quarter. Read the complete narrative. Read the complete narrative. Want to see what underpins that kind of step change in Sanmina's earnings power? The narrative leans heavily on faster top line expansion, rising margins, and a valuation multiple that assumes the business keeps scaling into higher value work. Result: Fair Value of $260 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Sanmina's story could look very different if the ZT Systems acquisition or the timing of AMD Helios underwhelm, or if any major customer cuts orders. Find out about the key risks to this Sanmina narrative. The analyst narrative suggests Sanmina is 23.6% undervalued at $260 per share. Yet on a simple P/E lens, the story is less clear. Sanmina trades on 34.6x earnings, which is higher than the US Electronic industry at 30x, but below peer averages at 40.1x and the fair ratio estimate of 43.9x. That mix of higher than industry, lower than peers, and below the fair ratio points to a stock that already carries meaningful expectations, but still has room for sentiment to shift either way if results or assumptions change. For you, the question is whether that balance feels like opportunity or valuation risk. See what the numbers say about this price — find out in our valuation breakdown. With sentiment clearly mixed on Sanmina, this is a moment to move quickly, review the numbers yourself, and decide where you land on the balance of risks and rewards. To help, start with our breakdown of 2 key rewards and 2 important warning signs If Sanmina has your attention, do not stop here. Broaden your watchlist with other stock ideas that match your risk, income, and quality preferences. Target reliable cash generators by reviewing our list of solid balance sheet and fundamentals (51 results) and focus on companies with sturdier financial footing. Hunt for potential mispricing by scanning the 51 high quality undervalued stocks that may align more closely with your return and risk goals. Build a steadier income stream by checking out the 11 dividend fortresses that could complement a growth focused position in Sanmina. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SANM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Sanmina has delivered very strong share price gains over the past five years, yet its current valuation checks point to a more mixed picture that is not a straightforward bargain or clear premium story. The stock is up about 404% over five years, which puts a lot of attention on whether recent returns are already reflecting most of the good news in the Sanmina investment case. Future revenue and margin execution can support the current share price, while any setback in maintaining profitability or cash generation may weigh heavily on how much investors are willing to pay for Sanmina. The broader valuation checks are mixed rather than one sided, with 3 out of 6 indicators pointing to the stock screening as undervalued. The issue now is whether Sanmina's current price still leaves enough valuation support after such a strong multi year run. Compare Sanmina's multi year run with other stocks that screen as potentially mispriced by checking out the hand picked 51 high quality undervalued stocks. The P/E multiple is a useful reference point for Sanmina because earnings are a key driver of how investors tend to value established manufacturing and electronics service companies. Sanmina currently trades on a P/E of 34.6x, which is higher than the Electronic industry average of 30.0x but below the peer average of 40.1x. The fair P/E ratio for Sanmina is estimated at 43.9x, which is above both the current multiple and the wider industry yardstick. That indicates the present 34.6x P/E is below the level implied by this tailored fair multiple, taking into account the share price performance already seen. On this earnings multiple, Sanmina stock may be trading below the fair P/E some investors might associate with a business with its profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Sanmina's valuation puzzle leaves off by setting out what would need to happen to revenue, margins and earnings for the stock to look materially stronger or weaker than today's price. Each view connects its number to a clear stance on how Sanmina's growth, profitability and key risks might evolve, which you can revisit as fresh information comes through on the Community page. One of the top community narratives on Sanmina: 24% undervalued Read one of the top narratives on Sanmina Do you think there's more to the story for Sanmina? Head over to our Community to see what others are saying! Sanmina screens as modestly undervalued on its current P/E framework, although the broader checks are mixed rather than emphatically cheap. After a very strong multi year move, the key question is whether earnings and margins can support that multiple without leaving much room for disappointment. For long term investors, the crux of the Sanmina debate is whether current profitability and cash generation can be maintained or improved, or whether any stumble would prompt a reset of the valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SANM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Sanmina (SANM). Shares have added about 10.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sanmina due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Sanmina Corporation before we dive into how investors and analysts have reacted as of late. Sanmina reported strong third-quarter fiscal 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Non-GAAP earnings came in at $3.31 per share, up 116% year over year and ahead of the consensus estimate of $2.78 by 19.06%. Revenues of $3.46 billion increased 69.7% year over year and exceeded the consensus estimate of $3.43 billion by 0.90%.Results reflected continued strength in cloud and AI infrastructure, broad-based growth across the core Sanmina business, and solid contributions from ZT Systems. Favorable business mix, disciplined cost management and non-recurring engineering services further supported profitability. The top-line outperformance was driven by continued momentum in cloud and AI infrastructure as well as broad-based growth across the core Sanmina business. Core Sanmina revenues increased 17.0% year over year to $2.4 billion, exceeding management’s outlook, while ZT Systems contributed $1.1 billion in revenues, landing at the midpoint of guidance.Management also highlighted strong bookings during the quarter, with a book-to-bill ratio above 1.1. The company continued adding new customers and projects, positioning the business for further expansion in fiscal 2027 and beyond. Profitability strengthened on favorable business mix and disciplined execution. Non-GAAP gross profit increased to $370 million from $186 million a year earlier, with gross margin expanding 160 basis points to 10.7%.Operating leverage further boosted earnings. Non-GAAP operating income rose to $275.8 million, while operating margin expanded to 8.0% from 5.7% in the prior-year quarter. Management attributed the improvement to strong execution, disciplined cost management and higher contributions from non-recurring engineering services. Integrated Manufacturing Solutions (IMS) revenue climbed 79.4% year over year to $2.96 billion, benefiting from growth across all end markets and the contribution from ZT Systems. IMS non-GAAP gross margin improved to 10.2%, driven primarily by favorable product mix.Components, Products and Services (CPS) revenues increased 29.2% year over year to $546 million, supported by higher demand for AI system racks and high-technology printed circuit boards used in aerospace and defense. CPS non-GAAP gross margin declined to 12.8% from 14.7% a year ago due to depreciation and other costs associated with investments in new programs, although margin improved sequentially by 120 basis points. Communications Networks, Cloud and AI Infrastructure represented 62% of quarterly revenue, totaling $2.15 billion, up 173.2% from the year-ago period. The remaining industrial and energy, medical, defense and aerospace, automotive and transportation businesses generated $1.32 billion in revenues, up 4.8%.Management said AI continues to drive growth across the communications and cloud infrastructure markets. During the quarter, Sanmina secured additional next-generation accelerated compute orders, expanded its customer base and continued integrating ZT Systems while advancing vertical integration opportunities expected to support future growth. Sanmina ended the quarter with $1.84 billion in cash and cash equivalents and approximately $4.0 billion of available liquidity. The company had no borrowings outstanding under its $1.5 billion revolving credit facility and reported a net leverage ratio of 0.29x. Cash flow from operations totaled $124.5 million as the company continued investing in AI-related manufacturing capacity, liquid cooling, automation and power infrastructure. In the first nine months of fiscal 2026 the company generated $702 million cash from operations compared to $421.6 million in the year ago period. Management issued fourth-quarter fiscal 2026 guidance for revenues of $3.3-$3.6 billion, non-GAAP operating margin of 7.5-8.0% and non-GAAP earnings of $3.05-$3.35 per share. It also raised its fiscal 2026 outlook, now expecting revenue of $14.0-$14.3 billion, up from the previous $13.7-$14.3 billion range. Non-GAAP operating margin guidance increased to 6.85-7.25% from 6.3-6.6%, while non-GAAP earnings guidance rose to $11.90-$12.20 per share from the prior range of $10.75-$11.35. Management also reiterated confidence in delivering more than $16 billion in revenue in fiscal 2027 as AI demand and ZT Systems integration continue to gain momentum. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 13.49% due to these changes. Currently, Sanmina has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Sanmina has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investors might want to bet on Sanmina (SANM), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The upward trend in estimate revisions for this electronics manufacturing services company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Sanmina, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $3.20 per share for the current quarter, which represents a year-over-year change of +91.6%. Over the last 30 days, two estimates have moved higher for Sanmina compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 13.49%. The company is expected to earn $11.89 per share for the full year, which represents a change of +96.9% from the prior-year number. The revisions trend for the current year also appears quite promising for Sanmina, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 11.14%. Thanks to promising estimate revisions, Sanmina currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. While strong estimate revisions for Sanmina have attracted decent investments and pushed the stock 6.9% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sanmina’s second quarter results reflected robust demand across its core and acquired businesses, with both the core Sanmina and ZT Systems units contributing to notable year-on-year growth. Management credited the broad-based strength in end markets, particularly the communications networks, cloud, and AI infrastructure segments, as primary drivers. CEO Jure Sola pointed to strong bookings and a healthy backlog, emphasizing, “AI is driving growth in this entire end market.” Non-recurring engineering services also provided a boost to operating margins, supported by disciplined cost management and strategic investments in capacity, especially for high-technology printed circuit boards and AI system racks. Is now the time to buy SANM? Find out in our full research report (it’s free). Revenue: $3.46 billion vs analyst estimates of $3.40 billion (69.7% year-on-year growth, 1.8% beat) Adjusted EPS: $3.31 vs analyst estimates of $2.79 (18.5% beat) Adjusted Operating Income: $275.8 million vs analyst estimates of $229.6 million (8% margin, 20.1% beat) Revenue Guidance for Q3 CY2026 is $3.45 billion at the midpoint, below analyst estimates of $3.52 billion Adjusted EPS guidance for Q3 CY2026 is $3.20 at the midpoint, above analyst estimates of $2.95 Operating Margin: 7%, up from 5.1% in the same quarter last year Market Capitalization: $9.95 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ruplu Bhattacharya (Bank of America) asked about the sustainability of higher operating margins and the impact of non-recurring engineering services; CFO Jonathan Faust explained margin outperformance was mix-driven and expects margins to normalize as new programs ramp. Samik Chatterjee (J.P. Morgan) inquired about new customer wins beyond AMD, specifically referencing Cerebras; Faust confirmed recent wins with alternate chip designers and highlighted the expansion across multiple AI platforms. Steven Fox (Fox Advisors) questioned the scalability of high-technology printed circuit board operations, especially for aerospace and defense; CEO Jure Sola emphasized ongoing capacity investments and noted these segments are more profitable than average. Mehdi Hosseini (SIG) sought clarity on ZT Systems' long-term revenue run rate and the inclusion of inference opportunities; Faust stated the current run rate fits prior expectations, with accelerated compute expected to drive future upside. Anja Soderstrom (Sidoti) asked about the India joint venture’s higher payout; Faust cited ongoing expansion in the region and said it remains a strategic focus across end markets. In the coming quarters, the StockStory team will closely monitor (1) the pace of revenue ramp from new accelerated compute programs, (2) progress on ZT Systems integration and the realization of operational synergies, and (3) the effectiveness of ongoing investments in capacity and engineering capabilities. Additional signposts include traction with new customer wins in AI infrastructure and the impact of working capital dynamics on free cash flow. Sanmina currently trades at $185.56, down from $208.90 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Sanmina Corporation SANM has delivered stronger-than-expected quarterly results while raising its fiscal outlook amid rising demand for artificial intelligence infrastructure. That has renewed investor interest in whether the stock still offers an attractive opportunity.The answer depends on whether the company's earnings momentum, valuation and expanding AI manufacturing footprint can outweigh execution and competitive risks. Sanmina reported quarterly adjusted earnings and revenues above expectations, supported by broad-based demand across its core operations and the contribution from the ZT Systems acquisition. Revenue growth, operating margin expansion and improved operating leverage reflected favorable product mix, disciplined cost management and higher engineering services activity.The core business continued benefiting from cloud and AI infrastructure demand, while ZT Systems expanded Sanmina's presence in accelerated compute platforms and strengthened its integrated manufacturing capabilities. The shares trade at a forward earnings multiple that remains modest relative to projected earnings growth. The current valuation suggests investors are not paying an excessive premium for expected growth.Even so, valuation should be viewed alongside execution. Sustaining earnings growth will require the company to successfully ramp new AI programs and deliver on its manufacturing investments. Image Source: Zacks Investment Research Management raised its fiscal 2026 revenue, operating margin and earnings outlook following the latest quarter. It also continues to expand production capacity, automation, liquid cooling and power infrastructure.Additional hyperscale and original equipment manufacturer program wins, together with demand visibility extending into future fiscal periods, remain important. Industry peers Jabil Inc. JBL and Flex Ltd. FLEX are also benefiting from AI infrastructure manufacturing demand. Customer concentration, elevated inventory levels, ongoing capital spending requirements, competitive pressures, geopolitical uncertainty and supply chain complexity remain key risks. Continued investment could also create periodic margin variability as new programs ramp. The bottom line is that Sanmina continues to benefit from favorable AI infrastructure trends and improving financial performance, although execution remains important.The stock carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of A, Momentum Score of B and VGM Score of A. These Style Scores highlight attractive value and growth characteristics, while the Hold rank supports a balanced near-term view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by broad-based strength across all end markets in the core business, complemented by the successful integration of ZT Systems. The Communications Networks, Cloud, and AI Infrastructure segment grew 173.2% year-over-year, primarily fueled by surging demand for AI-related compute and networking solutions. Management attributed margin outperformance to a favorable product mix and a significant contribution from non-recurring engineering (NRE) services related to pre-production validation. Strategic investments in metal fabrication for AI racks and high-technology printed circuit boards (PCBs) are beginning to yield results, evidenced by sequential margin improvement in the CPS segment. The company is leveraging ZT Systems' large-scale integration capabilities alongside Sanmina’s sub-assembly expertise to capture a larger share of the AI data center market. Operational focus has shifted toward vertical integration, utilizing internal components like liquid cooling, manifolds, and busbars to enhance the value proposition for hyperscale customers. Management expressed high confidence in achieving revenue of $16 billion-plus in fiscal year 2027, with growth expected to accelerate in the second half of that year. Next-generation accelerated compute programs are on track to begin contributing to revenue in Q1 fiscal 2027, following current pre-production and validation phases. Working capital is expected to increase significantly in the coming quarters to support the inventory requirements of ramping large-scale AI infrastructure programs. Capital expenditures are projected at $135 million for Q4 as the company continues to invest in liquid cooling, test cell capacity, and automation for next-gen compute. The company anticipates continued growth in the Industrial and Energy segments for fiscal 2027, specifically targeting power distribution and grid-scale transformers for AI data centers. Inventory levels increased 87.2% year-over-year, primarily due to the ZT Systems acquisition and the capital-intensive nature of the systems integration business. The Q4 outlook for ZT Systems was moderated due to timing variability in legacy storage and general-purpose compute programs. Management noted that while demand is strong, the business remains somewhat constrained by industry-wide component shortages in specific categories. The net leverage ratio is expected to move toward the long-term target of 1.0x to 2.0x as the company utilizes liquidity to fund working capital for AI ramps. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects long-term margins to stabilize in the 6% to 7% range as high-volume accelerated compute ramps, which carries a different profile than NRE services. Operating margins were temporarily boosted by labor-intensive pre-production work that carries high margins but low relative revenue. Management confirmed new program wins with additional platforms, including Cerebras, as part of a broader strategy to support multiple AI chip architectures. The company is seeing success in winning business that will be manufactured in core Sanmina factories rather than just ZT Systems facilities. Working capital will build in advance of revenue growth, representing a strategic investment in the business to support customer production schedules. Final operating models and cash flow dynamics for the 2027 ramp are still being finalized with customers and will be detailed in the next earnings call. Demand for advanced PCBs (up to 70-plus layers) is exceeding current capacity, leading to ongoing investments in North America and Singapore facilities. This business is noted to be more profitable than the corporate average, driven by AI and military aerospace requirements.

Sanmina Corporation SANM entered its third-quarter fiscal 2026 earnings call with a focus on expanding its role in artificial intelligence (AI) infrastructure manufacturing. Management highlighted stronger demand, new customer wins and progress in integrating ZT Systems. The discussion centered on how Sanmina is positioning its combined capabilities for accelerated compute, data center infrastructure and broader AI-related opportunities. Sanmina reported third-quarter fiscal 2026 non-GAAP earnings per share (EPS) of $3.31, beating the Zacks Consensus Estimate of $2.78. Revenues of $3.46 billion exceeded the Zacks Consensus Estimate of $3.43 billion . Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation Quote CEO Jure Sola said the company delivered strong execution across both core Sanmina operations and the ZT Systems business. He highlighted progress in customer orders, capacity expansion and vertical integration efforts. CFO Jonathan Faust said revenue growth was supported by strength across end markets, including continued momentum in cloud and AI infrastructure. Core Sanmina revenues reached $2.4 billion, up 17% year over year, while ZT Systems revenues were $1.1 billion. Sanmina’s management emphasized that the ZT Systems integration remains a key part of its growth strategy. Faust said the company is executing a three-phase integration plan focused on operational improvements, investments and long-term synergies. The company continued investing in incremental power, liquid cooling, test cell capacity and automation capabilities to support next-generation accelerated compute production. Management said customer validation efforts are progressing with AMD and other partners. Sola noted that combining ZT Systems’ large-scale systems integration capabilities with Sanmina’s manufacturing footprint is expanding the company’s addressable market. He added that new business wins are beginning to benefit core Sanmina facilities. Sanmina’s communication networks and cloud AI infrastructure market represented 62% of third-quarter revenues or $2.148 billion, surging 173.2% year over year. Management attributed growth to AI demand, new programs and customer additions. Sola said demand remains strong across accelerated compute, general-purpose compute, storage, networking and optical systems. The company also highlighted investments in high-technology printed circuit boards and AI system rack capabilities. During the call, management said core business bookings were strong, with a book-to-bill above 1.1. Executives also pointed to continued opportunities across the industrial, medical, defense and aerospace markets. Sanmina expects fiscal 2026 revenues of $14.0 billion to $14.3 billion compared with its prior outlook of $13.7 billion to $14.3 billion. The company also increased its non-GAAP EPS outlook to $11.90-$12.20 from $10.75-$11.35. For the fourth quarter, management guided revenues to $3.3 billion to $3.6 billion and non-GAAP EPS to $3.05 to $3.35. The outlook includes expectations for continued contributions from engineering services and strategic investments. Sola said Sanmina remains confident in achieving more than $16 billion in fiscal 2027 revenues. Management expects growth to accelerate through fiscal 2027 and continue into fiscal 2028, driven by AI infrastructure demand. A Bank of America analyst asked about margins as ZT Systems becomes a larger contributor. Faust explained that third-quarter margins benefited from business mix, core Sanmina strength and nonrecurring engineering services tied to preproduction activities. Faust said engineering services are expected to continue contributing in the near term before declining as production ramps up. He maintained that longer-term operating margins are expected in the 6-7% range. A JPMorgan analyst asked about additional AI-related customer wins. Management discussed broader cloud and AI infrastructure opportunities, including new platform programs and demand across rack systems, networking and high-technology components. Sanmina ended the third quarter with $1.84 billion in cash and cash equivalents and free cash flow of $23.7 million. Management said working capital investment will increase as AI-related programs expand. Executives emphasized continued investment in manufacturing capacity, including metal fabrication, printed circuit boards, power systems and ZT Systems capabilities. These investments are intended to support future production growth. Management’s overall message was centered on execution, capacity expansion and customer engagement as Sanmina builds its AI infrastructure presence. SANM carries a Zacks Rank #3 (Hold). The Zacks Rank reflects earnings estimate revision trends and can change as analysts update their expectations following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of B, Growth Score of A, Momentum Score of F and VGM Score of A. Zacks Style Scores evaluate value, growth, momentum and combined characteristics, with higher scores indicating stronger relative attributes within each style category. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sanmina Corporation SANM reported strong third-quarter fiscal 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Non-GAAP earnings came in at $3.31 per share, up 116% year over year and ahead of the consensus estimate of $2.78 by 19.06%. Revenues of $3.46 billion increased 69.7% year over year and exceeded the consensus estimate of $3.43 billion by 0.90%.Results reflected continued strength in cloud and AI infrastructure, broad-based growth across the core Sanmina business, and solid contributions from ZT Systems. Favorable business mix, disciplined cost management and non-recurring engineering services further supported profitability. The top-line outperformance was driven by continued momentum in cloud and AI infrastructure as well as broad-based growth across the core Sanmina business. Core Sanmina revenues increased 17.0% year over year to $2.4 billion, exceeding management’s outlook, while ZT Systems contributed $1.1 billion in revenues, landing at the midpoint of guidance.Management also highlighted strong bookings during the quarter, with a book-to-bill ratio above 1.1. The company continued adding new customers and projects, positioning the business for further expansion in fiscal 2027 and beyond. Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation Quote Profitability strengthened on favorable business mix and disciplined execution. Non-GAAP gross profit increased to $370 million from $186 million a year earlier, with gross margin expanding 160 basis points to 10.7%.Operating leverage further boosted earnings. Non-GAAP operating income rose to $275.8 million, while operating margin expanded to 8.0% from 5.7% in the prior-year quarter. Management attributed the improvement to strong execution, disciplined cost management and higher contributions from non-recurring engineering services. Integrated Manufacturing Solutions (IMS) revenue climbed 79.4% year over year to $2.96 billion, benefiting from growth across all end markets and the contribution from ZT Systems. IMS non-GAAP gross margin improved to 10.2%, driven primarily by favorable product mix.Components, Products and Services (CPS) revenues increased 29.2% year over year to $546 million, supported by higher demand for AI system racks and high-technology printed circuit boards used in aerospace and defense. CPS non-GAAP gross margin declined to 12.8% from 14.7% a year ago due to depreciation and other costs associated with investments in new programs, although margin improved sequentially by 120 basis points. Communications Networks, Cloud and AI Infrastructure represented 62% of quarterly revenue, totaling $2.15 billion, up 173.2% from the year-ago period. The remaining industrial and energy, medical, defense and aerospace, automotive and transportation businesses generated $1.32 billion in revenues, up 4.8%.Management said AI continues to drive growth across the communications and cloud infrastructure markets. During the quarter, Sanmina secured additional next-generation accelerated compute orders, expanded its customer base and continued integrating ZT Systems while advancing vertical integration opportunities expected to support future growth. Sanmina ended the quarter with $1.84 billion in cash and cash equivalents and approximately $4.0 billion of available liquidity. The company had no borrowings outstanding under its $1.5 billion revolving credit facility and reported a net leverage ratio of 0.29x. Cash flow from operations totaled $124.5 million as the company continued investing in AI-related manufacturing capacity, liquid cooling, automation and power infrastructure. In the first nine months of fiscal 2026 the company generated $702 million cash from operations compared to $421.6 million in the year ago period. Management issued fourth-quarter fiscal 2026 guidance for revenues of $3.3-$3.6 billion, non-GAAP operating margin of 7.5-8.0% and non-GAAP earnings of $3.05-$3.35 per share. It also raised its fiscal 2026 outlook, now expecting revenue of $14.0-$14.3 billion, up from the previous $13.7-$14.3 billion range. Non-GAAP operating margin guidance increased to 6.85-7.25% from 6.3-6.6%, while non-GAAP earnings guidance rose to $11.90-$12.20 per share from the prior range of $10.75-$11.35. Management also reiterated confidence in delivering more than $16 billion in revenue in fiscal 2027 as AI demand and ZT Systems integration continue to gain momentum. Sanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Arista Networks Inc. ANET is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.Keysight Technologies, Inc. KEYS is set to release third-quarter 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.Motorola Solutions, Inc. MSI is set to release second-quarter 2026 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, implying growth of 8.12% from the year-ago reported figure.Motorola has a long-term earnings growth expectation of 9.47%. The company delivered an average earnings surprise of 5.17% in the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanmina Corporation (SANM) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $3.46 billion, up 69.7% year-over-year. Non-GAAP Operating Margin: 8.0%. Non-GAAP Diluted EPS: $3.31, up 116.0% year-over-year. Cash Flow from Operations: $124 million. Core Sanmina Revenue: $2.4 billion, up 17.0% year-over-year. ZT Systems Revenue: $1.1 billion. Non-GAAP Gross Profit: $370 million or 10.7% of revenue. Non-GAAP Operating Expenses: $94.7 million or 2.7% of revenue. IMS Revenue: $2.96 billion, up 79.4% year-over-year. GPS Revenue: $546 million, up 29.2% year-over-year. Cash and Cash Equivalents: $1.84 billion. Inventory: $2.2 billion, up 87.2% year-over-year. Non-GAAP Pre-Tax ROIC: 39.1%. Free Cash Flow: $223.7 million. Capital Expenditures: $100.9 million. Non-GAAP Effective Tax Rate: 21% to 23%. Q4 Revenue Outlook: $3.3 billion to $3.6 billion. Fiscal Year 2026 Revenue Outlook: $14.0 billion to $14.3 billion. Fiscal Year 2026 Non-GAAP EPS Outlook: $11.90 to $12.20. Warning! GuruFocus has detected 3 Warning Sign with AGYS. Is SANM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sanmina Corp (NASDAQ:SANM) reported strong financial performance with revenue of $3.46 billion, exceeding their outlook range. The company achieved a non-GAAP operating margin of 8% and a non-GAAP diluted EPS of $3.31, both surpassing expectations. Core Sanmina business revenue grew by 17% year-over-year, with broad-based strength across all end markets. Sanmina Corp (NASDAQ:SANM) has a strong balance sheet with cash and cash equivalents of $1.84 billion and no outstanding borrowings on their $1.5 billion revolver. The company is making strategic investments in capabilities and capacity to support future growth, particularly in AI and cloud infrastructure. ZT Systems revenue was at the midpoint of its outlook range, indicating potential challenges in meeting higher expectations. Inventory levels increased significantly, up 87.2% year-over-year, which could indicate potential inefficiencies or overstocking. Non-GAAP gross margin for the DPS segment decreased by 190 basis points year-over-year, primarily due to depreciation and other expenses. The company expects working capital to grow, which could impact cash flow from operations negatively. ZT Systems' revenue guidance for the fourth quarter is lower than previously implied, driven by timing issues with legacy programs. Q: How should we think about operating margins going forward as ZT-related AI revenues become a higher part of the mix? What was the margin impact of the nonrecurring engineering services this quarter? A: Jonathan Faust, CFO, explained that the margin performance was better than expected due to a favorable mix and engineering services. The nonrecurring engineering services contributed significantly to the margins, as they involved labor-intensive pre-production work for new accelerated compute programs. While these services will continue into Q4, they will ramp down over time. Long-term, margins are expected to remain in the 6% to 7% range. Q: Do you still have a backlog of older systems, and how should we think about ZT revenue growth in fiscal '27? A: Jonathan Faust, CFO, stated that while it's too early to formally guide fiscal '27, the focus is on future accelerated compute programs. The legacy platforms have mostly phased out, and the company is concentrating on new opportunities in cloud and AI infrastructure. The communication networks and cloud infrastructure end market grew 33%, indicating strong potential for future growth. Q: How should we model working capital and free cash flow as you build these production racks? A: Jonathan Faust, CFO, noted that working capital is expected to increase as an investment in the business, particularly as new programs ramp up. While this will pressure working capital numbers, it is seen as a positive investment. More details on cash flow dynamics will be provided in the Q4 earnings call. Q: Can you provide more details on new customer wins related to AMD and other chip designers or rack manufacturers? A: Jonathan Faust, CFO, confirmed that the partnership with AMD is on track and mentioned new platform business with Cerebras. The company is focused on expanding its cloud and AI infrastructure market presence, leveraging its capabilities across multiple platforms, which has led to new program wins and accelerated growth in the Core Sanmina business. Q: What are the product categories driving growth in the legacy communication networks and cloud and AI infrastructure business, and how sustainable is this growth? A: Jonathan Faust, CFO, highlighted that the segment grew over 30% this quarter, driven by new programs and customers in the Core Sanmina business. Growth is seen across multiple product types, including optical systems, IP switching, and routing. Despite component shortages, the company expects continued growth due to strong demand and new customer wins. For the complete transcript of the earnings call, please refer to the full earnings call transcript.