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Sanmina Q1 Earnings Beat Estimates on Healthy Top-Line Growth
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Key Takeaways
SANM delivered strong Q1 FY26, with revenues up 59% to $3.19B and earnings surpassing the consensus estimate.
SANM's Integrated Manufacturing Solutions surged 72.2% to $2.79B, accounting for 87.5% of total revenue.
SANM generated $178.7M operating cash flow, repurchased $79M of shares, and guided Q2 revenues of $3.1-$3.4B.
Sanmina Corporation (SANM - Free Report) reported strong first-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.
The California-based electronics manufacturing company posted a solid 59% increase in revenues year over year, driven by strong demand across several markets. Improved free cash flow is a positive sign.
Net Income
Net income on a GAAP basis was $49.3 million or 89 cents per share compared with $65 million or $1.16 per share in the prior-year quarter. Despite top-line growth, higher operating expenses impacted the bottom line.
Non-GAAP net income in the reported quarter was $132.4 million or $2.38 per share compared with $80.2 million or $1.44 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.15.
Sanmina Corporation Price, Consensus and EPS Surprise
Net sales increased to $3.19 billion from $2 billion in the year-ago quarter, primarily driven by growth across multiple end markets. The top line beat the consensus estimate by $90 million.
In the first quarter of fiscal 2026, the Integrated Manufacturing Solutions segment generated $2.79 billion in revenues, up 72.2% year over year. The segment contributed 87.5% to revenues. Strong end-market demand, higher customer orders, and improved operational efficiency drove solid sales growth in this segment.
The Components, Products, and Services segment revenues were $434 million, up 4.33% year over year, backed by growth in several end markets.
By end market, revenues from Communications Networks and Cloud & AI Infrastructure rose to $1,964 million from $737 million, while revenues from Industrial & Energy, Medical, Defense & Aerospace, and Automotive & Transportation declined to $1.226 billion from $1.269 billion a year ago.
Other Details
Non-GAAP gross profit was $297.9 million compared with $180.1 million in the year-ago quarter. The improvement was driven by higher revenues, improved product mix, better operational efficiency, and cost control. Non-GAAP operating income totaled $192 million compared with $112.7 million in the year-ago period. Non-GAAP operating margin was 6%, marginally up from 5.6% in the prior-year quarter.
Cash Flow & Liquidity
In the first quarter of fiscal 2026, Sanmina generated $178.7 million of net cash from operating activities compared with $63.9 million in the year-ago quarter. As of Dec. 27, 2025, the company had $1.42 billion in cash and cash equivalents and $ 2 billion in long-term debt. During the quarter, the company repurchased 0.5 million shares for $79 million.
Outlook
For the second quarter of fiscal 2026, revenues are expected to be in the range of $3.1-$3.4 billion. Management estimates non-GAAP earnings per share in the band of $2.25-$2.55. Non-GAAP operating margin is expected in the band of 5.7-6.2%.
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb.12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.4% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release fourth-quarter 2025 earnings on Jan. 28. The Zacks Consensus Estimate for earnings is pegged at 93 cents per share, implying growth of 69.09% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 39.13%. The company delivered an average earnings surprise of 17.90% in the last four reported quarters.
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Sanmina Q1 Earnings Beat Estimates on Healthy Top-Line Growth
Key Takeaways
Sanmina Corporation (SANM - Free Report) reported strong first-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.
The California-based electronics manufacturing company posted a solid 59% increase in revenues year over year, driven by strong demand across several markets. Improved free cash flow is a positive sign.
Net Income
Net income on a GAAP basis was $49.3 million or 89 cents per share compared with $65 million or $1.16 per share in the prior-year quarter. Despite top-line growth, higher operating expenses impacted the bottom line.
Non-GAAP net income in the reported quarter was $132.4 million or $2.38 per share compared with $80.2 million or $1.44 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.15.
Sanmina Corporation Price, Consensus and EPS Surprise
Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation Quote
Revenues
Net sales increased to $3.19 billion from $2 billion in the year-ago quarter, primarily driven by growth across multiple end markets. The top line beat the consensus estimate by $90 million.
In the first quarter of fiscal 2026, the Integrated Manufacturing Solutions segment generated $2.79 billion in revenues, up 72.2% year over year. The segment contributed 87.5% to revenues. Strong end-market demand, higher customer orders, and improved operational efficiency drove solid sales growth in this segment.
The Components, Products, and Services segment revenues were $434 million, up 4.33% year over year, backed by growth in several end markets.
By end market, revenues from Communications Networks and Cloud & AI Infrastructure rose to $1,964 million from $737 million, while revenues from Industrial & Energy, Medical, Defense & Aerospace, and Automotive & Transportation declined to $1.226 billion from $1.269 billion a year ago.
Other Details
Non-GAAP gross profit was $297.9 million compared with $180.1 million in the year-ago quarter. The improvement was driven by higher revenues, improved product mix, better operational efficiency, and cost control. Non-GAAP operating income totaled $192 million compared with $112.7 million in the year-ago period. Non-GAAP operating margin was 6%, marginally up from 5.6% in the prior-year quarter.
Cash Flow & Liquidity
In the first quarter of fiscal 2026, Sanmina generated $178.7 million of net cash from operating activities compared with $63.9 million in the year-ago quarter. As of Dec. 27, 2025, the company had $1.42 billion in cash and cash equivalents and $ 2 billion in long-term debt. During the quarter, the company repurchased 0.5 million shares for $79 million.
Outlook
For the second quarter of fiscal 2026, revenues are expected to be in the range of $3.1-$3.4 billion. Management estimates non-GAAP earnings per share in the band of $2.25-$2.55. Non-GAAP operating margin is expected in the band of 5.7-6.2%.
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
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb.12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.4% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release fourth-quarter 2025 earnings on Jan. 28. The Zacks Consensus Estimate for earnings is pegged at 93 cents per share, implying growth of 69.09% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 39.13%. The company delivered an average earnings surprise of 17.90% in the last four reported quarters.