Sanmina (SANM) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $3.46 billion, up nearly 70% year-over-year, exceeding guidance, with strong growth in both core and ZT Systems businesses and non-GAAP operating margin of 8% and diluted EPS of $3.31.

• Integration of ZT Systems is progressing well, contributing $1.1 billion in revenue, new customer wins, and expanded offerings in accelerated compute and AI platforms.

• Net income attributable to common shareholders was $117 million, up from $69 million a year ago.

• Strategic investments in AI, cloud, automation, and vertical integration are supporting future growth, with strong demand expected for fiscal 2027 and 2028.

• Cash flow from operations was $124 million, with cash and equivalents at $1.84 billion at quarter-end.

Financial highlights

• Q3 revenue was $3.46 billion, up 69.7% year-over-year; core business revenue up 17%, ZT Systems contributed $1.1 billion.

• Non-GAAP gross profit was $370 million (10.7% margin), non-GAAP operating profit $275.8 million (8.0% margin), and non-GAAP diluted EPS $3.31, up 116% year-over-year.

• GAAP operating income was $221 million (6.4% margin); GAAP diluted EPS was $2.12.

• Free cash flow for Q3 was $23.7 million; cash and equivalents at quarter-end were $1.84 billion.

• Non-GAAP EBITDA for the quarter was $322 million.

Outlook and guidance

• Q4 revenue expected between $3.3–$3.6 billion; non-GAAP operating margin 7.5%–8.0%; non-GAAP EPS $3.05–$3.35.

• FY26 revenue guidance raised to $14.0–$14.3 billion, non-GAAP EPS $11.90–$12.20, and operating margin 6.85%–7.25%.

• Confident in achieving $16+ billion revenue for FY27, with higher growth expected in H2 FY27 and into FY28, driven by AI data center demand.