Sanmina’s second quarter results reflected robust demand across its core and acquired businesses, with both the core Sanmina and ZT Systems units contributing to notable year-on-year growth. Management credited the broad-based strength in end markets, particularly the communications networks, cloud, and AI infrastructure segments, as primary drivers. CEO Jure Sola pointed to strong bookings and a healthy backlog, emphasizing, “AI is driving growth in this entire end market.” Non-recurring engineering services also provided a boost to operating margins, supported by disciplined cost management and strategic investments in capacity, especially for high-technology printed circuit boards and AI system racks.
Is now the time to buy SANM? Find out in our full research report (it’s free for active Edge members).
Sanmina (SANM) Q2 CY2026 Highlights:
- Revenue: $3.46 billion vs analyst estimates of $3.40 billion (69.7% year-on-year growth, 1.8% beat)
- Adjusted EPS: $3.31 vs analyst estimates of $2.79 (18.5% beat)
- Adjusted Operating Income: $275.8 million vs analyst estimates of $229.6 million (8% margin, 20.1% beat)
- Revenue Guidance for Q3 CY2026 is $3.45 billion at the midpoint, below analyst estimates of $3.52 billion
- Adjusted EPS guidance for Q3 CY2026 is $3.20 at the midpoint, above analyst estimates of $2.95
- Operating Margin: 7%, up from 5.1% in the same quarter last year
- Market Capitalization: $9.95 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sanmina’s Q2 Earnings Call
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Ruplu Bhattacharya (Bank of America) asked about the sustainability of higher operating margins and the impact of non-recurring engineering services; CFO Jonathan Faust explained margin outperformance was mix-driven and expects margins to normalize as new programs ramp.
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Samik Chatterjee (J.P. Morgan) inquired about new customer wins beyond AMD, specifically referencing Cerebras; Faust confirmed recent wins with alternate chip designers and highlighted the expansion across multiple AI platforms.
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Steven Fox (Fox Advisors) questioned the scalability of high-technology printed circuit board operations, especially for aerospace and defense; CEO Jure Sola emphasized ongoing capacity investments and noted these segments are more profitable than average.
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Mehdi Hosseini (SIG) sought clarity on ZT Systems' long-term revenue run rate and the inclusion of inference opportunities; Faust stated the current run rate fits prior expectations, with accelerated compute expected to drive future upside.
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Anja Soderstrom (Sidoti) asked about the India joint venture’s higher payout; Faust cited ongoing expansion in the region and said it remains a strategic focus across end markets.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of revenue ramp from new accelerated compute programs, (2) progress on ZT Systems integration and the realization of operational synergies, and (3) the effectiveness of ongoing investments in capacity and engineering capabilities. Additional signposts include traction with new customer wins in AI infrastructure and the impact of working capital dynamics on free cash flow.
Sanmina currently trades at $185.56, down from $208.90 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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