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Sanmina Q4 Earnings Call Highlights AI Growth and Platform Expansion
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Key Takeaways
Sanmina projects fiscal 2027 revenues of $17.5B-$19.5B, with cloud and AI systems contributing up to $9B.
SANM expands its AI footprint with AMD Helios customer wins and a second computing platform.
Sanmina targets 7-7.5% operating margin in fiscal 2027 as product mix and platform ramp timing shape growth.
Sanmina Corporation (SANM - Free Report) outlined an ambitious fiscal 2027 growth plan during its fourth-quarter fiscal 2026 earnings call, supported by accelerating cloud and artificial intelligence (AI) infrastructure demand, expanding customer relationships and new computing platforms.
Management emphasized the progress of its ZT Systems integration and investments in advanced manufacturing capabilities. However, the timing of major program ramps, supply-chain constraints and product mix remain important considerations for the coming year.
SANM Targets Strong Growth in Fiscal 2027
Chief financial officer Jonathan Faust projected fiscal 2027 revenues of $17.5 billion to $19.5 billion, representing approximately 27% year-over-year growth at the midpoint.
Cloud and AI systems revenues are expected to be between $7.5 billion and $9 billion. Management anticipates that growth will be concentrated in the second half, supported by accelerated computing deployments and additional platform programs.
For the first quarter of fiscal 2027, Sanmina expects revenues of $3.8 billion to $4.1 billion and non-GAAP earnings per share of $3.50 to $3.85. Cloud and AI systems revenues are projected between $1.3 billion and $1.5 billion.
Sanmina Advances AI Platform Expansion
Faust highlighted progress in Sanmina's partnership with AMD, including customer wins for the Helios accelerated computing platform. Initial shipments have begun in limited quantities, while customer validation and preproduction activities continue.
The company also secured programs on a second computing platform, separate from AMD, with production expected to ramp during fiscal 2027. Discussions concerning a third platform are underway, although potential contributions are excluded from guidance.
During the analyst Q&A, BofA Securities questioned the timing of AI revenue growth. Faust reiterated that deployments would remain weighted toward the second half, with customer production schedules continuing to evolve.
SANM Earnings and Revenues Beat Zacks Estimates
Sanmina reported fourth-quarter fiscal 2026 non-GAAP earnings of $4.43 per share, exceeding the Zacks Consensus Estimate of $3.27. Earnings increased 166% from $1.67 in the prior-year quarter.
Quarterly revenues reached $3.86 billion, surpassing the Zacks Consensus Estimate of $3.48 billion. Revenues increased 84% year over year, supported by organic growth and the ZT Systems contribution.
Sanmina Corporation Price, Consensus and EPS Surprise
Faust noted that approximately $30 million in tariff recoveries provided an unexpected benefit, adding roughly 75 basis points to non-GAAP operating margin and 42 cents to adjusted earnings per share.
Sanmina Sees Broad-Based End-Market Demand
Chairman and chief executive officer Jure Sola emphasized continued diversification across cloud infrastructure, industrial, energy, medical, defense and aerospace markets.
Core Sanmina revenues increased 42% year over year to $2.97 billion during the fourth quarter. Management attributed the expansion to new customer programs, stronger execution and demand across multiple end markets.
During the Q&A, JPMorgan questioned whether core business growth would moderate. Sola indicated that low-double-digit growth remains a reasonable expectation, supported by maturing programs and an expanding customer pipeline.
SANM Focuses on Margins and Cash Deployment
Faust guided fiscal 2027 non-GAAP operating margin to 7-7.5%, compared with 9% in the fourth quarter. Management emphasized that product mix would significantly influence profitability.
During the Q&A, Fox Advisors examined the sustainability of recent margin gains. Faust clarified that fourth-quarter tariff recoveries were nonrecurring, while engineering-related revenues remain part of the operating model.
Sanmina generated $944 million in fiscal 2026 operating cash flow and $541 million in free cash flow. Management expects working capital requirements to increase alongside growth, with fiscal 2027 capital expenditures projected at $450 million.
Sanmina Prioritizes Execution and Diversification
Sola emphasized expanding customer relationships, strengthening engineering capabilities and improving operating leverage as priorities for fiscal 2027.
Management's outlook reflects confidence in sustained demand while acknowledging program complexity, supply-chain shortages and geopolitical uncertainties. Executing major platform launches while preserving a diversified business portfolio remains central to its strategy.
What SANM's Zacks Rank and Style Scores Indicate
Sanmina currently carries a Zacks Rank #2 (Buy), indicating favorable near-term performance prospects based on earnings estimate revisions. Its Growth Score, Momentum Score and VGM Score are all A, reflecting strong characteristics across these investment styles.
The combination of a favorable Zacks Rank and top-tier Style Scores is associated with stronger potential relative performance over the next one to three months. However, the Zacks Rank can change as analysts revise earnings estimates following the latest results.
View the Zacks #1 Rank List
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Sanmina Q4 Earnings Call Highlights AI Growth and Platform Expansion
Key Takeaways
Sanmina Corporation (SANM - Free Report) outlined an ambitious fiscal 2027 growth plan during its fourth-quarter fiscal 2026 earnings call, supported by accelerating cloud and artificial intelligence (AI) infrastructure demand, expanding customer relationships and new computing platforms.
Management emphasized the progress of its ZT Systems integration and investments in advanced manufacturing capabilities. However, the timing of major program ramps, supply-chain constraints and product mix remain important considerations for the coming year.
SANM Targets Strong Growth in Fiscal 2027
Chief financial officer Jonathan Faust projected fiscal 2027 revenues of $17.5 billion to $19.5 billion, representing approximately 27% year-over-year growth at the midpoint.
Cloud and AI systems revenues are expected to be between $7.5 billion and $9 billion. Management anticipates that growth will be concentrated in the second half, supported by accelerated computing deployments and additional platform programs.
For the first quarter of fiscal 2027, Sanmina expects revenues of $3.8 billion to $4.1 billion and non-GAAP earnings per share of $3.50 to $3.85. Cloud and AI systems revenues are projected between $1.3 billion and $1.5 billion.
Sanmina Advances AI Platform Expansion
Faust highlighted progress in Sanmina's partnership with AMD, including customer wins for the Helios accelerated computing platform. Initial shipments have begun in limited quantities, while customer validation and preproduction activities continue.
The company also secured programs on a second computing platform, separate from AMD, with production expected to ramp during fiscal 2027. Discussions concerning a third platform are underway, although potential contributions are excluded from guidance.
During the analyst Q&A, BofA Securities questioned the timing of AI revenue growth. Faust reiterated that deployments would remain weighted toward the second half, with customer production schedules continuing to evolve.
SANM Earnings and Revenues Beat Zacks Estimates
Sanmina reported fourth-quarter fiscal 2026 non-GAAP earnings of $4.43 per share, exceeding the Zacks Consensus Estimate of $3.27. Earnings increased 166% from $1.67 in the prior-year quarter.
Quarterly revenues reached $3.86 billion, surpassing the Zacks Consensus Estimate of $3.48 billion. Revenues increased 84% year over year, supported by organic growth and the ZT Systems contribution.
Sanmina Corporation Price, Consensus and EPS Surprise
Sanmina Corporation price-consensus-eps-surprise-chart | Sanmina Corporation Quote
Faust noted that approximately $30 million in tariff recoveries provided an unexpected benefit, adding roughly 75 basis points to non-GAAP operating margin and 42 cents to adjusted earnings per share.
Sanmina Sees Broad-Based End-Market Demand
Chairman and chief executive officer Jure Sola emphasized continued diversification across cloud infrastructure, industrial, energy, medical, defense and aerospace markets.
Core Sanmina revenues increased 42% year over year to $2.97 billion during the fourth quarter. Management attributed the expansion to new customer programs, stronger execution and demand across multiple end markets.
During the Q&A, JPMorgan questioned whether core business growth would moderate. Sola indicated that low-double-digit growth remains a reasonable expectation, supported by maturing programs and an expanding customer pipeline.
SANM Focuses on Margins and Cash Deployment
Faust guided fiscal 2027 non-GAAP operating margin to 7-7.5%, compared with 9% in the fourth quarter. Management emphasized that product mix would significantly influence profitability.
During the Q&A, Fox Advisors examined the sustainability of recent margin gains. Faust clarified that fourth-quarter tariff recoveries were nonrecurring, while engineering-related revenues remain part of the operating model.
Sanmina generated $944 million in fiscal 2026 operating cash flow and $541 million in free cash flow. Management expects working capital requirements to increase alongside growth, with fiscal 2027 capital expenditures projected at $450 million.
Sanmina Prioritizes Execution and Diversification
Sola emphasized expanding customer relationships, strengthening engineering capabilities and improving operating leverage as priorities for fiscal 2027.
Management's outlook reflects confidence in sustained demand while acknowledging program complexity, supply-chain shortages and geopolitical uncertainties. Executing major platform launches while preserving a diversified business portfolio remains central to its strategy.
What SANM's Zacks Rank and Style Scores Indicate
Sanmina currently carries a Zacks Rank #2 (Buy), indicating favorable near-term performance prospects based on earnings estimate revisions. Its Growth Score, Momentum Score and VGM Score are all A, reflecting strong characteristics across these investment styles.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The combination of a favorable Zacks Rank and top-tier Style Scores is associated with stronger potential relative performance over the next one to three months. However, the Zacks Rank can change as analysts revise earnings estimates following the latest results.