Sanmina posts $3.86 billion in fourth-quarter revenue, forecasts 27% growth in 2027
Key Facts
Sanmina reported fourth-quarter results on November 9 for its fiscal year ended October 3, beating analyst estimates for revenue and earnings, and provided guidance for the fiscal first quarter ending January 2, 2027. Revenue was $3.86 billion, compared with an estimate of $3.48 billion, while adjusted earnings were $4.43 per share, $1.16 above the $3.27 consensus. The announcement came after the regular session, in which the stock closed at $149.64, up 11.11% for the day. The stock then rose 23% in after-hours trading on Monday following the results. The earnings beat, alongside higher guidance for the coming quarter, gives investors an indication of the company’s continued business expansion.
GAAP and non-GAAP measures presented different pictures of operating profitability. GAAP diluted earnings per share were $2.14, and the GAAP operating margin was 6.0%. On the company’s adjusted non-GAAP basis, diluted earnings per share were $4.43 and the operating margin was 9.0%. These figures distinguish profitability calculated under accounting standards from the adjusted measures the company used in its announcement. Adjusted earnings topping the consensus estimate also highlights the gap between the reported result and what analysts had expected for the quarter.
Management attributed some of the company’s growth to its expansion across end markets and the integration of ZT Systems, which strengthened Sanmina’s presence in cloud and AI infrastructure. Chief Executive Officer Jure Sola said the company had “integrated the ZT Systems business, strengthened our position in the cloud and AI infrastructure market, and grown Sanmina’s core business by double digits year over year.” Cloud and AI infrastructure segment revenue was $2.37 billion in the fourth quarter, up 179% from the same period a year earlier. For fiscal 2026, segment revenue reached $9.25 billion, up 198% year over year. These figures reflect the activity’s growing weight in the reported quarterly and annual results.
Sanmina forecast fiscal first-quarter 2027 revenue of $3.8 billion to $4.1 billion and adjusted diluted earnings per share of $3.50 to $3.85. The revenue range exceeded the analyst consensus of $3.55 billion; its midpoint of $3.95 billion is 11% above consensus. The adjusted earnings forecast compares with a consensus of $2.95 per share, putting both ends of the company’s range above that estimate. The quarter’s January 2, 2027 end date provides the timeframe for the quarterly forecast. The company announced the results and guidance on November 9 and scheduled a conference call to review them that day at 5 p.m. Eastern time.
For fiscal 2027, the company set a revenue range of $17.5 billion to $19.5 billion and adjusted diluted earnings per share of $15.50 to $17.50. The midpoint of the revenue range represents growth of about 27%, according to the company’s estimate. In cloud and AI, Sanmina is targeting revenue of $7.5 billion to $9 billion for the year, with revenue expected to accelerate through the year, led mainly by the timing of expansions in the Helios program. The company also expects to ship $1.3 billion to $1.5 billion in cloud and AI systems in the fiscal first quarter, with shipments set to accelerate during the year as the program expands. Management plans to spend $450 million on capital expenditures in fiscal 2027 to support investment in capabilities and production capacity.
Cash flow from operations was $242 million in the fourth quarter and $944 million in fiscal 2026. The company repurchased $154 million of shares during the quarter, bringing total buybacks for the year to $393 million. At the same time, Sanmina said its outlook takes into account continued uncertainty in markets and the geopolitical environment. It cautioned that current or future changes in tariffs and trade policies could adversely affect costs, supply chains and customer demand. These risks form part of the context in which the company presented its quarterly and annual outlook.