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Sanmina Q3 Earnings Surpass Estimates, Revenues Rise Y/Y

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Key Takeaways

  • SANM's Q3 revenues rose to $2.04B, beating estimates and driven by growth across multiple end markets.
  • Integrated Manufacturing Solutions revenue grew 11.6% Y/Y, contributing over 80% of total sales.
  • Free cash flow more than doubled Y/Y to $168.2M, bolstering Sanmina's liquidity position.

Sanmina Corporation (SANM - Free Report) reported strong third-quarter fiscal 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. 

The California-based global electronics manufacturing services provider reported a revenue growth year over year, owing to solid momentum across multiple end markets. Strong growth in free cash flow is a positive.

SANM’s Net Income

Net income on a GAAP basis in the quarter was $68.6 million or $1.26 per share compared with $51.6 million or 91 cents per share in the prior-year quarter. Top-line expansion supported growth in net income.

Non-GAAP net income in the reported quarter was $83.6 million or $1.53 per share compared with $70.8 million or $1.25 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.42.

Sanmina Corporation Price, Consensus and EPS Surprise Sanmina Corporation Price, Consensus and EPS Surprise

Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation Quote

SANM’s Revenues

Net sales during the quarter increased to $2.04 billion from $1.84 billion reported in the year-ago quarter, primarily driven by growth across multiple end markets. The top line beat the consensus estimate by $67 million.

In the fiscal third quarter, Integrated Manufacturing Solutions generated $1.64 billion in revenues, up 11.6% year over year. The segment contributed 80.7% to revenues. Solid sales growth was primarily driven by the communications networks and cloud infrastructure end markets.

Components, Products and Services revenues increased to $422 million from up 8.8% year over year, backed by growth in several end markets.

End-market-wise, Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.256 billion in revenues, up 6.2% year over year. The company generated $786 million from Communications Networks and Cloud Infrastructure, up 19.2% year over year.

SANM’s Other Details

Non-GAAP gross profit was $186 million compared with $157 million in the year-ago quarter. The improvement is driven by a favorable mix and improved operational efficiency. Non-GAAP operating income totaled $115.7 million compared with $96.8 million in the year-ago period. Non-GAAP operating margin was 5.7%, marginally up from 5.3% in the prior-year quarter.

SANM’s Cash Flow & Liquidity

In the third quarter of fiscal 2025, Sanmina generated $200.8 million of net cash from operating activities compared with $90 million in the previous year’s quarter. As of June 28, 2025, the company had $797.9 million in cash and cash equivalents and $287.2 million in long-term debt. During the quarter, the company repurchased approximately 0.2 million shares for approximately $13 million.

SANM’s Outlook

For the fourth quarter of fiscal 2025, revenues are expected to be in the range of $2-$2.1 billion. GAAP earnings per share are forecasted to be between $1.21 and $1.31. Management estimates non-GAAP earnings per share in the band of $1.52-$1.62.

SANM’s Zacks Rank

Sanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

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Arista continues to benefit from the expanding cloud networking market, which is driven by the strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration.

Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.24% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33%. PINS delivered an average earnings surprise of 0.53% in the last four reported quarters.

Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporating sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits.

InterDigital (IDCC - Free Report) is scheduled to release second-quarter 2025 earnings on July 31. The Zacks Consensus Estimate for earnings is pegged at $2.77 per share. InterDigital delivered an earnings surprise of 160.15% in the trailing four quarters.

InterDigital’s global footprint, diversified product portfolio and the ability to penetrate different markets are impressive. Apart from the company’s strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, considering the massive size of the market it licenses.

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