Sanmina Downgraded Despite Q2 Earnings Beat and AI Infrastructure Growth

Key Facts

Sanmina Corporation (SANM) reported impressive Q2 FY2026 results, with earnings per share beating consensus estimates by 31% on the back of $1.8 billion in revenue from its ZT Systems segment. Despite a recent rating downgrade, the stock is currently trading at 19x FY2026 P/E, which represents a notable discount compared to its AI and EMS industry peers. The company's growth strategy now highlights the MI400 platform and accelerated compute as pivotal drivers for achieving its fiscal year 2027 revenue targets. Management remains committed to its long-term goals of surpassing $16 billion in sales and reaching $11 in earnings per share. While analysts maintain a cautious stance on valuation following the recent rally, the significant earnings beat underscores the company's operational strength. Investors continue to monitor Sanmina's ability to capitalize on the rapid expansion of AI data center infrastructure.

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