Sanmina Reports Fourth Quarter and Fiscal 2026 Financial Results

Sanmina posts robust Q4 and FY26 results, projects continued double-digit growth for 2027.

What the company is saying

Sanmina Corporation (NASDAQ:SANM) reports a transformative fiscal year 2026, emphasizing strong growth, operational execution, and successful integration of ZT Systems. The company highlights Q4 revenue of $3.86 billion, GAAP operating margin of 6.0%, and GAAP diluted EPS of $2.14, with non-GAAP diluted EPS at $4.43. For the full year, revenue reached $14.53 billion, GAAP operating margin was 4.7%, and GAAP diluted EPS was $6.85, while non-GAAP diluted EPS was $13.28. Management, led by Chairman and CEO Jure Sola, frames the year as exceptional, citing 79% revenue growth, 130% increase in non-GAAP operating profit, and more than doubling of non-GAAP diluted EPS, attributing these gains to disciplined execution and diversification. The company stresses its strong cash flow from operations ($944 million) and free cash flow ($541 million), which enabled $393 million in share repurchases and strategic investments. Looking ahead, Sanmina projects fiscal 2027 revenue of $17.5–$19.5 billion and non-GAAP diluted EPS of $15.50–$17.50, expecting demand to remain strong and positioning itself for further growth in cloud and AI infrastructure.

What the data suggests

The disclosed figures show Sanmina generated $3.86 billion in Q4 revenue and $14.53 billion for FY26, with Q4 GAAP and non-GAAP operating margins at 6.0% and 9.0%, respectively. GAAP diluted EPS for Q4 was $2.14, non-GAAP $4.43; for the year, GAAP diluted EPS was $6.85, non-GAAP $13.28. Cash flow from operations was $242 million in Q4 and $944 million for the year, with free cash flow at $83 million and $541 million, respectively. The company repurchased $154 million of shares in Q4 and $393 million for the year, ending with $1.68 billion in cash. Sanmina completed a $1.1 billion acquisition and took on $2.2 billion in new long-term debt, supporting its expansion. Management claims 79% revenue growth and 130% non-GAAP operating profit increase, but the source does not provide prior year figures to independently verify these percentages. Fiscal 2027 guidance calls for 27% revenue growth and 24% non-GAAP EPS growth at the midpoint, with Q1 revenue expected between $3.8–$4.1 billion and non-GAAP EPS of $3.50–$3.85. The company’s financial disclosures are comprehensive for the current period, with strong cash generation and capital allocation supporting the growth narrative.

Analysis

The announcement is highly factual, with extensive disclosure of realised financial results for both the quarter and full fiscal year, including GAAP and non-GAAP profitability, cash flow, and capital allocation. The majority of key claims are realised and supported by hard numbers, such as revenue, operating margin, EPS, and free cash flow. Forward-looking statements are limited to guidance for the next quarter and fiscal year, which is standard for an earnings release and not excessive in tone. The company does highlight transformative growth and strategic positioning, but these are substantiated by the integration of a major acquisition and strong operational results. While there is significant capital intensity (over $1.1 billion for an acquisition and $403 million in capex), these are paired with immediate and near-term financial benefits, as evidenced by the strong current-year results. There is no evidence of narrative inflation or overstatement relative to the disclosed data.

Risk flags

• ●Integration risk remains following the $1.1 billion ZT Systems acquisition; failure to realize expected synergies or manage integration costs could impact margins and growth, especially given the scale of the transaction and its role in the company’s cloud and AI infrastructure positioning.
• ●Customer concentration risk is highlighted by the company’s own acknowledgment that it relies on a limited number of customers for a substantial portion of sales; any loss or reduction in orders from key clients could materially affect revenue and profitability.
• ●Leverage risk has increased, as Sanmina took on $2.2 billion in new long-term debt to fund acquisitions and expansion; higher debt levels may constrain future flexibility and increase vulnerability to interest rate changes or cash flow disruptions.
• ●Market and geopolitical risks are present, including exposure to changes in tariffs, trade policy, and geopolitical uncertainty (such as Middle East conflict), which could disrupt supply chains, increase costs, or dampen customer demand.
• ●Forward-looking guidance depends on continued strong demand in cloud and AI infrastructure; any sector slowdown or adverse market shift could cause the company to miss its ambitious 2027 targets.

Bottom line

Sanmina’s Q4 and FY26 results demonstrate strong operational execution, with $14.53 billion in revenue, robust margins, and significant cash generation. The company’s integration of ZT Systems and aggressive capital allocation—including $393 million in share buybacks and $1.1 billion in acquisitions—signal confidence in its growth trajectory. While management’s claims of 79% revenue growth and 130% non-GAAP operating profit increase are not independently verifiable from the disclosed data, the current period figures are solid and forward guidance for 2027 is ambitious. Risks include integration of large acquisitions, customer concentration, increased leverage, and exposure to macroeconomic and geopolitical factors. The most important takeaway is that Sanmina is delivering strong results now and expects to sustain double-digit growth, but execution on integration and maintaining demand in key end markets will be critical to meeting its targets.

Announcement summary

(NASDAQ: SANM) Sanmina Corporation reported financial results for the fourth quarter and fiscal year ended October 3, 2026, and provided its outlook for fiscal 2027. Fourth quarter fiscal 2026 revenue was $3.86 billion, with a GAAP operating margin of 6.0% and GAAP diluted EPS of $2.14. Non-GAAP operating margin for the quarter was 9.0% and non-GAAP diluted EPS was $4.43. Fiscal year 2026 revenue totaled $14.53 billion, with a GAAP operating margin of 4.7% and GAAP diluted EPS of $6.85. Non-GAAP operating margin for the year was 7.4% and non-GAAP diluted EPS was $13.28. Cash flow from operations was $242 million in Q4 and $944 million for the full year. Free cash flow was $83 million in Q4 and $541 million for fiscal 2026. The company repurchased $154 million of shares (0.8 million shares) in Q4 and $393 million (approximately 2.4 million shares) for the year. Q4 ending cash and cash equivalents were $1.68 billion. Net sales for Q4 were $3,858,022,000 and for the year were $14,525,002,000. Net income attributable to common shareholders was $117,960,000 in Q4 and $378,021,000 for the year. Basic EPS for Q4 was $2.20 and for the year was $7.00; diluted EPS for Q4 was $2.14 and for the year was $6.85. Non-GAAP net income attributable to common shareholders was $244,027,000 in Q4 and $733,005,000 for the year. Non-GAAP diluted EPS was $4.43 in Q4 and $13.28 for the year. Total assets at year-end were $10,739,730,000, with total liabilities and stockholders' equity matching this amount. Accounts receivable at year-end were $2,340,508,000, inventories were $3,609,268,000, and goodwill was $228,934,000. Accounts payable at year-end were $3,021,669,000, and long-term debt was $1,915,528,000. The company integrated the ZT Systems business during the year, strengthening its position in the Cloud and AI Infrastructure end market. Revenue grew 79%, non-GAAP operating profit increased 130%, and non-GAAP diluted EPS more than doubled compared to the prior year. For the first quarter of fiscal 2027, Sanmina projects revenue of $3.8 billion to $4.1 billion, non-GAAP operating margin of 7.0% to 7.5%, and non-GAAP diluted EPS of $3.50 to $3.85. For fiscal 2027, the company projects revenue of $17.5 billion to $19.5 billion, non-GAAP operating margin of 7.0% to 7.5%, and non-GAAP diluted EPS of $15.50 to $17.50. The company held a conference call on November 9, 2026, to discuss these results and outlook. Jure Sola, Chairman and CEO, stated that the company delivered strong broad-based growth, maintained a well-diversified portfolio, and generated strong cash flow to fund strategic investments. The company attributes its results to disciplined execution, robust financial management, and targeted diversification. The company defines free cash flow as net cash provided by operating activities less net purchases of property and equipment. Adjustments to non-GAAP results include stock compensation expense, amortization of inventory fair value adjustment, amortization of intangible assets, acquisition and integration costs, legal and other expenses, and restructuring. The company completed a $1,114,152,000 cash paid business acquisition during the year. Proceeds from long-term debt were $2,200,000,000. Net purchases of property, plant, and equipment were $403,267,000 for the year. The company repurchased $394,624,000 of common stock during the year. Cash provided by operating activities for the year was $944,094,000. The company ended the year with 55,202,000 weighted-average diluted shares outstanding.

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