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SANM Q4 Earnings Coming Up: How Should You Play the Stock?
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Key Takeaways
Sanmina is set to report Q4 earnings on Nov. 9, with revenues of $3.48B and EPS of $3.27 expected.
AI data center demand, ZT Systems integration and accelerated compute programs are fueling Sanmina's growth.
SANM has fallen 19.2% in a year, but rising earnings estimates and vertical integration support its outlook.
Sanmina Corporation (SANM - Free Report) is scheduled to report fourth-quarter fiscal 2026 earnings on Nov. 9. The Zacks Consensus Estimate for sales and earnings is pegged at $3.48 billion and $3.27 per share, respectively. Earnings estimates for SANM for 2026 have increased over the past 60 days, while for 2027 it has moved upward.
Image Source: Zacks Investment Research
Earnings Surprise History
The leading electronics manufacturing services firm has had a solid earnings surprise history in the trailing four quarters, exceeding earnings expectations on all occasions. It delivered a four-quarter earnings surprise of 16.68%, on average.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sanmina for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The rapid expansion of AI data centers continues to serve as the primary engine for Sanmina’s growth. High-performance networking, storage and accelerated compute programs are driving robust order volumes across both the core business and the recently integrated ZT Systems operations.
The ZT Systems acquisition expands Sanmina's presence in accelerated compute while creating additional opportunities to leverage its internal component, power, liquid cooling and manufacturing capabilities across a broader customer base. Management continues to invest in automation, power infrastructure, liquid cooling and test cell capacity while advancing vertical integration synergies.
Active collaboration on pre-production validation work and robust non-recurring engineering services opted for by enterprises are driving Sanmina’s profitability. The company continues to strengthen its competitive position by aligning engineering investments with customers' evolving manufacturing requirements. Its 42Q connected manufacturing platform improves visibility across factories and suppliers, enabling more efficient production management and faster operational decisions. These factors are expected to have a favorable impact on Sanmina’s financial results.
Price Performance
Over the past year, Sanmina has declined 19.2% compared with the industry’s decline of 3.3%. It has underperformed its peer, Flex Ltd. (FLEX - Free Report) , but outperformed Celestica Inc. (CLS - Free Report) . Flex has gained 18.3%, while Celestica has declined 33% during this period.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Sanmina appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 9.98 forward earnings, lower than 13.66 for the industry and its mean of 17.31.
Image Source: Zacks Investment Research
Investment Considerations
Sanmina's integrated operating model spans product design, engineering, component manufacturing, system assembly, testing, logistics and aftermarket services, allowing customers to consolidate manufacturing with a single partner throughout the product lifecycle. This model has become increasingly valuable as demand shifts toward more complex cloud and AI infrastructure platforms requiring higher levels of systems integration.
Sanmina serves customers across industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure markets, reducing reliance on any single end market. While communications networks and cloud and AI infrastructure continue to drive growth, broad participation across multiple industries helps moderate cyclical fluctuations.
Our proprietary calculations show TTM cash flow (CF) conversion of 292.5% versus a 389.9% median and TTM free cash flow (FCF) conversion of 192.9% versus a 236.6% median. Both remain strong despite running below Sanmina’s historical levels. Recent cash generation has benefited from working-capital movements, while the company is also spending heavily on capacity, automation, liquid cooling and power infrastructure.
End Note
Sanmina is benefiting from growing traditional contract manufacturing services and AI infrastructure expansion. The company’s vertically integrated operating model, deeper hyperscale partnerships, and disciplined execution position it well to capture long-term growth opportunities in various emerging markets. Upward estimate revision underscores growing investors’ confidence in the stock’s growth potential. Owing to these factors, Sanmina appears to be a good investment option at present.
View the Zacks #1 Rank List
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SANM Q4 Earnings Coming Up: How Should You Play the Stock?
Key Takeaways
Sanmina Corporation (SANM - Free Report) is scheduled to report fourth-quarter fiscal 2026 earnings on Nov. 9. The Zacks Consensus Estimate for sales and earnings is pegged at $3.48 billion and $3.27 per share, respectively. Earnings estimates for SANM for 2026 have increased over the past 60 days, while for 2027 it has moved upward.
Image Source: Zacks Investment Research
Earnings Surprise History
The leading electronics manufacturing services firm has had a solid earnings surprise history in the trailing four quarters, exceeding earnings expectations on all occasions. It delivered a four-quarter earnings surprise of 16.68%, on average.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sanmina for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sanmina currently has an ESP of -0.46% with a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping Upcoming Results
The rapid expansion of AI data centers continues to serve as the primary engine for Sanmina’s growth. High-performance networking, storage and accelerated compute programs are driving robust order volumes across both the core business and the recently integrated ZT Systems operations.
The ZT Systems acquisition expands Sanmina's presence in accelerated compute while creating additional opportunities to leverage its internal component, power, liquid cooling and manufacturing capabilities across a broader customer base. Management continues to invest in automation, power infrastructure, liquid cooling and test cell capacity while advancing vertical integration synergies.
Active collaboration on pre-production validation work and robust non-recurring engineering services opted for by enterprises are driving Sanmina’s profitability. The company continues to strengthen its competitive position by aligning engineering investments with customers' evolving manufacturing requirements. Its 42Q connected manufacturing platform improves visibility across factories and suppliers, enabling more efficient production management and faster operational decisions. These factors are expected to have a favorable impact on Sanmina’s financial results.
Price Performance
Over the past year, Sanmina has declined 19.2% compared with the industry’s decline of 3.3%. It has underperformed its peer, Flex Ltd. (FLEX - Free Report) , but outperformed Celestica Inc. (CLS - Free Report) . Flex has gained 18.3%, while Celestica has declined 33% during this period.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Sanmina appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 9.98 forward earnings, lower than 13.66 for the industry and its mean of 17.31.
Image Source: Zacks Investment Research
Investment Considerations
Sanmina's integrated operating model spans product design, engineering, component manufacturing, system assembly, testing, logistics and aftermarket services, allowing customers to consolidate manufacturing with a single partner throughout the product lifecycle. This model has become increasingly valuable as demand shifts toward more complex cloud and AI infrastructure platforms requiring higher levels of systems integration.
Sanmina serves customers across industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure markets, reducing reliance on any single end market. While communications networks and cloud and AI infrastructure continue to drive growth, broad participation across multiple industries helps moderate cyclical fluctuations.
Our proprietary calculations show TTM cash flow (CF) conversion of 292.5% versus a 389.9% median and TTM free cash flow (FCF) conversion of 192.9% versus a 236.6% median. Both remain strong despite running below Sanmina’s historical levels. Recent cash generation has benefited from working-capital movements, while the company is also spending heavily on capacity, automation, liquid cooling and power infrastructure.
End Note
Sanmina is benefiting from growing traditional contract manufacturing services and AI infrastructure expansion. The company’s vertically integrated operating model, deeper hyperscale partnerships, and disciplined execution position it well to capture long-term growth opportunities in various emerging markets. Upward estimate revision underscores growing investors’ confidence in the stock’s growth potential. Owing to these factors, Sanmina appears to be a good investment option at present.