SANM · Sanmina Corporation

Sanmina Corporation's Q2 FY2026 results reflect the transformative impact of the ZT Systems acquisition, which more than doubled revenue to $4.0 billion from $2.0 billion in the prior year quarter. This growth stems from integrating ZT's cloud and AI infrastructure offerings into our portfolio, significantly expanding our addressable market in high-growth end markets. Gross profit climbed 101% to $353.8 million, maintaining a gross margin of 8.8%, as the substantial revenue increase absorbed fixed costs and leveraged our manufacturing scale, though subject to ongoing fluctuations as noted in management discussion.

Operating income advanced 71% to $157.0 million, yielding a 3.9% operating margin, driven by the topline expansion while navigating integration dynamics. Net income grew 46% to $93.6 million, with diluted EPS rising 47% to $1.70, demonstrating resilient profitability amid the acquisition's scale effects. These outcomes align with effective management of our sales cycle and payment timing, which influence working capital requirements.

Increases in absolute dollars for certain expenses were primarily due to ZT acquisition costs and elevated stock-based compensation from new equity grants and variable compensation plans. IMS remains our single operating segment, encompassing printed circuit board assembly, high-level assembly, direct-order-fulfillment, and warranty services. Potential tariffs, retaliatory measures, and import/export restrictions could complicate supply chain costs and customer location decisions, as flagged in management commentary. Liquidity metrics like inventory, contract assets, customer advances, receivables, and payables will shape future needs, underscoring disciplined balance sheet management post-acquisition.