Sanmina beats its growth plan. The factory bill is climbing.
More cash is coming in, but property and equipment purchases absorbed two-thirds of the latest quarterly operating inflow.
Ticker Byline
Sanmina Corporation
Sanmina manufactures electronic products and systems for equipment companies in cloud and AI infrastructure, communications, industrial, medical and other markets.
- Ticker
- SANM
- Exchange
- XNAS
- SEC CIK
- 0000897723
How Sanmina makes money
Sanmina manufactures electronic products and systems for other equipment companies. Its markets include cloud and AI infrastructure, communications networks, industrial and energy equipment, medical devices, defense, aerospace and transportation.
It completed the purchase of ZT Systems' data-center manufacturing business from AMD on October 27, 2025. A $243 million working-capital settlement refund received in the June 2026 quarter reduced the purchase price. The agreement also provides for up to $450 million of contingent cash payments over three years.
Latest financial record
| Measure | Q4 2026 | Q4 2025 | FY 2026 | FY 2025 |
|---|---|---|---|---|
| Revenue | 3,858.0 | 2,096.4 | 14,525.0 | 8,128.4 |
| Net income attributable to common shareholders, GAAP | 118.0 | 48.1 | 378.0 | 245.9 |
| Diluted EPS, GAAP | $2.14 | $0.88 | $6.85 | $4.46 |
| Adjusted diluted EPS | $4.43 | $1.67 | $13.28 | $6.04 |
| Operating cash flow | 242.1 | 199.1 | 944.1 | 620.7 |
| Free cash flow | 83.0 | 136.8 | 540.8 | 478.2 |
Fiscal 2026 had 53 weeks, including a 14-week fourth quarter. Fiscal 2025 had 52 weeks and a 13-week fourth quarter.
Free cash flow subtracts net property and equipment purchases from operating cash flow. Adjusted earnings remove stock compensation, acquisition and integration expenses, amortization, restructuring and selected other items, with related tax adjustments. Q4 included a $78 million adjustment for changes in the estimated value of contingent acquisition payments.
Earlier promises and new forecasts
In July, Sanmina forecast Q4 revenue of $3.3 billion to $3.6 billion and adjusted EPS of $3.05 to $3.35. The actual results exceeded both ranges. Its 9% adjusted operating margin also exceeded the earlier 7.5% to 8% range.
For fiscal 2027, management forecasts revenue of $17.5 billion to $19.5 billion, adjusted EPS of $15.50 to $17.50 and an adjusted operating margin of 7% to 7.5%. For the first quarter ending January 2, 2027, it expects revenue of $3.8 billion to $4.1 billion and adjusted EPS of $3.50 to $3.85.
Cloud & AI Systems revenue was $5.35 billion in fiscal 2026 and is forecast at $7.5 billion to $9 billion in fiscal 2027. The category includes ZT Systems plus other platforms and services. Core Sanmina revenue grew 18.3% to $9.61 billion in fiscal 2026, while ZT contributed $4.91 billion.
Investment and financing
Net capital spending increased to $403.3 million in fiscal 2026 from $142.5 million a year earlier. Cash was $1.676 billion at October 3 and debt at balance-sheet carrying value was $2.088 billion. The company reported $393 million of share repurchases during the year.
On October 27, after the year-end balance sheet, Sanmina borrowed an additional $70 million under its term-loan facility and extended specified credit-facility maturities to October 2031.
Our analysis of the forecast beat and investment bill examines how the expansion is affecting cash generation.
Latest reporting
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