SANM · Sanmina Corporation

Sanmina delivered strong Q2 fiscal 2026 results with revenue of $4.01 billion, up significantly from $1.98 billion in the prior year quarter, driven by robust ZT Systems performance with accelerated compute shipments and 7.3% year-over-year core Sanmina growth. Non-GAAP operating margin expanded to 6.4% from 5.6%, and non-GAAP diluted EPS rose to $3.16 from $1.41, surpassing the company's outlook as stated by CEO Jure Sola. GAAP metrics showed operating margin at 3.9% and diluted EPS at $1.70. Key adjustments in the non-GAAP reconciliation included $72.6 million in acquisition/integration costs primarily from ZT Systems, stock compensation, and other items. Balance sheet strengthened with cash and equivalents at $1.58 billion versus $0.93 billion at FY2025 end, supported by $399 million operating cash flow and $342 million free cash flow, despite $160 million in share repurchases under the prior program. The board's new $600 million open-ended repurchase authorization, as noted by CFO Jon Faust, underscores confidence in the balance sheet and cash generation amid investments and target leverage. Guidance signals continued momentum: Q3 revenue $3.2-3.5 billion with non-GAAP margin 6.4-6.9% and EPS $2.55-2.85; full-year revenue raised to $13.7-14.3 billion, margin 6.3-6.6%, EPS $10.75-11.35, reflecting first-half strength and growth potential in cloud/AI infrastructure.