Sanmina (SANM) Q2 25/26 earnings summary

Executive summary

• Q2 revenue reached $4.01 billion, up 102% year-over-year, exceeding outlook due to strong execution in ZT Systems and core business, with non-GAAP operating margin at 6.4% and non-GAAP diluted EPS at $3.16.

• Cash flow from operations was $399 million, supporting continued investment and capital returns.

• ZT Systems contributed $1.88 billion in revenue, significantly above plan, with accelerated compute shipments shifting into Q2.

• Core business grew 7.3% year-over-year, with ZT Systems margins in line with core business.

• Board authorized a new $600 million share repurchase program after exhausting the prior program.

Financial highlights

• Q2 revenue of $4.01 billion, up 102% year-over-year, with non-GAAP operating margin at 6.4% and non-GAAP diluted EPS at $3.16, both up 125% year-over-year.

• Non-GAAP gross profit was $360 million (9.0% of revenue); GAAP gross profit was $354 million (8.8% of revenue).

• Free cash flow was $342 million; cash and equivalents at quarter end were $1.58 billion.

• Net income attributable to common shareholders was $93.6 million; non-GAAP net income was $173.9 million.

• 1.1 million shares repurchased for $160 million; board authorized $600 million for share repurchases.

Outlook and guidance

• Q3 revenue expected between $3.2 billion and $3.5 billion; non-GAAP operating margin guided at 6.4%–6.9%; non-GAAP diluted EPS $2.55–$2.85.

• FY26 revenue expected at $13.7 billion–$14.3 billion, non-GAAP operating margin 6.3%–6.6%, EPS $10.75–$11.35.

• Positioned to deliver $16 billion+ revenue in FY27.

• Management expects continued growth in cloud and AI infrastructure, supported by ZT Systems acquisition.