Sanmina (SANM) Q1 2026 earnings summary

Executive summary

• Q1 fiscal 2026 revenue reached $3.19 billion, up 59% year-over-year, at the high end of guidance, driven by strong growth in communications networks, cloud, and AI infrastructure, and the addition of ZT Systems.

• Non-GAAP operating margin was 6.0%, and non-GAAP diluted EPS was $2.38, both at the high end or exceeding outlook.

• Cash flow from operations was $179 million, with free cash flow of $92 million.

• Integration of ZT Systems is on track, immediately accretive to EPS, and expected to drive further growth in the second half of CY'26.

• The business is well-diversified across communications, cloud, industrial, medical, defense, and automotive markets.

Financial highlights

• Non-GAAP gross profit was $298 million (9.3% of revenue), up 30 basis points year-over-year.

• Non-GAAP operating profit was $192 million (6.0% of revenue), up 40 basis points year-over-year.

• Non-GAAP EBITDA was $230 million (7.2% margin), up from $145 million (7.2%).

• Cash and equivalents stood at $1.42 billion; no outstanding borrowings on the $1.5 billion revolver.

• GAAP net income attributable to common shareholders was $49.3 million, down from $65.0 million year-over-year.

Outlook and guidance

• Q2 revenue expected between $3.1 billion and $3.4 billion, a 62% year-over-year increase at the midpoint.

• Non-GAAP operating margin guidance: 5.7%-6.2%.

• Non-GAAP diluted EPS guidance: $2.25-$2.55, up 66.7% year-over-year at the midpoint.

• Capital expenditures expected around $95 million for Q2.

• Fiscal 2026 revenue consensus of $14 billion is achievable, with a path to $16+ billion by 2027.