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Are Rising Earnings Estimates a Solid Reason to Bet on SANM Stock?
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Key Takeaways
Earnings estimates for SANM rose 38.9% for 2025 and 43.4% for 2026 since July 2025.
SANM's 42Q connected manufacturing spans 70 factories and 35,000 devices across 15 countries.
Supply delays, tariffs and intense EMS competition continue to pressure SANM's bottom line.
Earnings estimates for Sanmina Corporation (SANM - Free Report) for 2025 and 2026 have moved up 38.9% to $9.64 and 43.4% to $11.46, respectively, since July 2025. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
SANM Buoyed by 42Q Connected Manufacturing
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an up-to-date information base. It offers a unified data ecosystem with real-time data analytics capabilities that significantly improve visibility across the enterprise’s distributed manufacturing and accelerate the decision-making process.
Sanmina has deployed the 42Q connected manufacturing in more than 70 factories across 15 countries, connecting more than 35,000 pieces of manufacturing equipment in the cloud. Such a technology-driven, customer-focused approach enables Sanmina to work closely with its customers to anticipate future manufacturing requirements and modify its R&D initiatives accordingly. Attracting and developing strong customer relationships by delivering high-level customer service is one of the key strategies to drive commercial expansion.
Vertical Integration: SANM’s Key Strength
Sanmina offers end-to-end solutions that include product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. Its vertically integrated manufacturing process brings several other advantages. This approach streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Vertical integration significantly accelerates time to market and time to volume production. In-house management of all components from the initial phase to the final product ensures flexibility and responsiveness in operations. The company can quickly reallocate its investments and change its production processes in alignment with evolving market dynamics. Vertical integration allows the company to easily develop customized solutions that cater to varied customer specifications operating in multiple sectors.
Price Performance
Sanmina has surged 100.7% over the past year compared with the industry’s growth of 85.4%. It has outperformed peers like Jabil, Inc. (JBL - Free Report) , but lagged Celestica Inc. (CLS - Free Report) . While Jabil has gained 45.8%, Celestica is up 197.7% over this period.
One-Year SANM Stock Price Performance
Image Source: Zacks Investment Research
SANM Plagued by Supply Chain Woes
Despite the positives, Sanmina has been heavily affected by supply-chain disruptions over the past few years. Restrictions during the COVID-19 pandemic, followed by the war in Europe and the Middle East, have adversely impacted its suppliers and port operations. Owing to current geopolitical events, the company is currently experiencing delays and shortages of critical components, including capacitors, resistors and more. The lack of availability of such components is piling up the inventory of other components, as the company cannot manufacture the finished good without all the components. This has led to a delay in customer delivery. Management expects supply chain issues will likely persist in the short to medium term.
Stiff Competition, Geopolitical Issues Hurt SANM
Intensifying competition in the electronics manufacturing services has adversely impacted Sanmina’s net sales. The company faces stiff competition from larger players like Jabil and Celestica, affecting its bottom line. Moreover, Sanmina has significant international exposure. It generates about 80% of its net sales from products manufactured outside the United States. This exposes it to political and economic disruptions in the operating countries. The company also has major production facilities in China. The recent imposition of tariffs on these countries by the U.S. government has increased the cost of sales and strained margins. In addition, high R&D costs have affected its margins.
Image Source: Zacks Investment Research
End Note
With a strong presence across multiple end markets, Sanmina is poised for long-term growth. In addition, strengthening technology leadership combined with a customer-focused approach is a key growth driver. Sanmina prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. With upward earnings estimate revisions, the stock is witnessing positive investor sentiment.
However, stiff competition and supply chain issues are likely to put pressure on the bottom-line growth. High R&D costs erode its profitability to a large extent. Sanmina is facing a tough operating environment in China amid escalating tariffs, raising questions about its long-term viability plans in the communist country. With a Zacks Rank #3 (Hold), Sanmina appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Are Rising Earnings Estimates a Solid Reason to Bet on SANM Stock?
Key Takeaways
Earnings estimates for Sanmina Corporation (SANM - Free Report) for 2025 and 2026 have moved up 38.9% to $9.64 and 43.4% to $11.46, respectively, since July 2025. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
SANM Buoyed by 42Q Connected Manufacturing
Sanmina is increasingly focusing on 42Q connected manufacturing that effectively integrates data from customers’ global factories and suppliers’ fleets and creates an up-to-date information base. It offers a unified data ecosystem with real-time data analytics capabilities that significantly improve visibility across the enterprise’s distributed manufacturing and accelerate the decision-making process.
Sanmina has deployed the 42Q connected manufacturing in more than 70 factories across 15 countries, connecting more than 35,000 pieces of manufacturing equipment in the cloud. Such a technology-driven, customer-focused approach enables Sanmina to work closely with its customers to anticipate future manufacturing requirements and modify its R&D initiatives accordingly. Attracting and developing strong customer relationships by delivering high-level customer service is one of the key strategies to drive commercial expansion.
Vertical Integration: SANM’s Key Strength
Sanmina offers end-to-end solutions that include product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach allows clients to rely on a single partner throughout the product lifecycle management. Its vertically integrated manufacturing process brings several other advantages. This approach streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale.
Vertical integration significantly accelerates time to market and time to volume production. In-house management of all components from the initial phase to the final product ensures flexibility and responsiveness in operations. The company can quickly reallocate its investments and change its production processes in alignment with evolving market dynamics. Vertical integration allows the company to easily develop customized solutions that cater to varied customer specifications operating in multiple sectors.
Price Performance
Sanmina has surged 100.7% over the past year compared with the industry’s growth of 85.4%. It has outperformed peers like Jabil, Inc. (JBL - Free Report) , but lagged Celestica Inc. (CLS - Free Report) . While Jabil has gained 45.8%, Celestica is up 197.7% over this period.
One-Year SANM Stock Price Performance
Image Source: Zacks Investment Research
SANM Plagued by Supply Chain Woes
Despite the positives, Sanmina has been heavily affected by supply-chain disruptions over the past few years. Restrictions during the COVID-19 pandemic, followed by the war in Europe and the Middle East, have adversely impacted its suppliers and port operations. Owing to current geopolitical events, the company is currently experiencing delays and shortages of critical components, including capacitors, resistors and more. The lack of availability of such components is piling up the inventory of other components, as the company cannot manufacture the finished good without all the components. This has led to a delay in customer delivery. Management expects supply chain issues will likely persist in the short to medium term.
Stiff Competition, Geopolitical Issues Hurt SANM
Intensifying competition in the electronics manufacturing services has adversely impacted Sanmina’s net sales. The company faces stiff competition from larger players like Jabil and Celestica, affecting its bottom line. Moreover, Sanmina has significant international exposure. It generates about 80% of its net sales from products manufactured outside the United States. This exposes it to political and economic disruptions in the operating countries. The company also has major production facilities in China. The recent imposition of tariffs on these countries by the U.S. government has increased the cost of sales and strained margins. In addition, high R&D costs have affected its margins.
Image Source: Zacks Investment Research
End Note
With a strong presence across multiple end markets, Sanmina is poised for long-term growth. In addition, strengthening technology leadership combined with a customer-focused approach is a key growth driver. Sanmina prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. With upward earnings estimate revisions, the stock is witnessing positive investor sentiment.
However, stiff competition and supply chain issues are likely to put pressure on the bottom-line growth. High R&D costs erode its profitability to a large extent. Sanmina is facing a tough operating environment in China amid escalating tariffs, raising questions about its long-term viability plans in the communist country. With a Zacks Rank #3 (Hold), Sanmina appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.