Sanmina (NASDAQ:SANM) Releases Quarterly Earnings Results

Sanmina (NASDAQ:SANM) announced its earnings results on Monday. The electronics maker reported $4.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.27 by $1.16, FiscalAI reports. The business had revenue of $3.86 billion during the quarter, compared to analyst estimates of $3.48 billion. Sanmina had a return on equity of 19.08% and a net margin of 2.41%. The company’s revenue for the quarter was up 84.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.67 earnings per share. 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 Performance

Sanmina stock opened at $149.64 on Tuesday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.06 and a current ratio of 1.78. The company has a market capitalization of $8.02 billion, a PE ratio of 26.77, a P/E/G ratio of 0.40 and a beta of 1.72. The company has a 50 day moving average price of $192.37 and a 200-day moving average price of $190.56. Sanmina has a fifty-two week low of $118.10 and a fifty-two week high of $288.68.

Key Stories Impacting Sanmina

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Fiscal Q4 adjusted earnings were $4.43 per share, versus the $3.27 consensus, while revenue of $3.86 billion beat the $3.48 billion estimate and increased 84% year over year. Article: Sanmina Surges After Q4 Earnings Beat
• Positive Sentiment: Management forecast fiscal 2027 revenue of $17.5 billion to $19.5 billion and EPS of $15.50 to $17.50, both above analyst estimates. Fiscal Q1 EPS guidance of $3.50 to $3.85 also topped the $2.91 consensus. The company expects cloud and AI systems revenue of $7.5 billion to $9.0 billion, reinforcing the growth outlook. Article: Sanmina Outlines FY 2027 Revenue Outlook

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. reduced their price target on Sanmina from $275.00 to $260.00 and set a “neutral” rating on the stock in a report on Tuesday, July 28th. Weiss Ratings cut Sanmina from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 18th. Zacks Research cut Sanmina from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Finally, Wall Street Zen raised Sanmina from a “buy” rating to a “strong-buy” rating in a research report on Sunday, October 11th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $198.33.

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.