Sanmina Corporation reported fiscal second‑quarter 2026 revenue of $4.01 billion, up 100% from $1.98 billion in Q2 FY2025, and a non‑GAAP diluted earnings per share of $3.16, a $0.76 beat over the consensus estimate of $2.40–$2.42. The GAAP diluted EPS of $1.70 also surpassed the $0.99 estimate, but the non‑GAAP figure is the primary indicator of operating performance and highlights the company’s strong earnings quality.
The surge in revenue was driven largely by ZT Systems, which contributed $1.88 billion in sales and maintained margins in line with Sanmina’s core business. Core Sanmina revenue grew 7.3% year‑over‑year, while the non‑GAAP operating margin expanded to 6.4% from 5.6% in the prior quarter, reflecting effective cost control and a favorable product mix that included high‑margin AI data‑center components.
Management attributed the earnings beat to accelerated compute shipments that were pulled forward from the second half of the year into Q2. "ZT Systems revenue significantly exceeded our expectations, driven by strong execution and customer demand, resulting in new accelerated compute shipments previously expected in the second half of the year to shift into the second quarter," said Chairman and CEO Jure Sola. "We delivered great results for the second quarter. Revenue, non‑GAAP operating margin and non‑GAAP diluted EPS all exceeded our outlook," he added.
Guidance for fiscal third‑quarter 2026 remains robust, with revenue projected at $3.20 billion to $3.50 billion and diluted EPS at $2.55 to $2.85. For the full year, Sanmina now expects revenue of $13.7 billion to $14.3 billion and EPS of $10.75 billion to $11.35 billion, a lift that signals confidence in sustained demand for AI infrastructure and the company’s ability to scale its expanded capabilities.
The company also announced a new $600 million share‑repurchase program, underscoring management’s confidence in cash‑flow generation and commitment to shareholder returns. "Today, we announced that our Board of Directors authorized an additional $600 million of share repurchases," said Executive VP & CFO Jonathan Faust.
Overall, the results demonstrate that Sanmina’s strategic pivot toward high‑margin, mission‑critical markets is delivering immediate financial value. The combination of a strong revenue beat, margin expansion, and a raised full‑year outlook positions the company for continued growth in the rapidly expanding AI and cloud data‑center sector.
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