Sanmina Corporation Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Electronic Equipment, Instruments and Components | Market Cap: ₹14.1K Cr
- Sanmina projects fiscal year 2027 revenue of $16 billion plus, indicating strong growth ahead. - Sanmina expects fiscal year 2026 non-GAAP diluted EPS in the range of $10.75 to $11.35.
From Sanmina Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹263.23
Market Cap
₹14.1K Cr
P/E Ratio
55.0
Revenue Rank
Margin Rank
How does Sanmina Corporation rank in Electronic Equipment, Instruments and Components?
Compare Sanmina Corporation against every Electronic Equipment, Instruments and Components company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 1- →Sanmina projects fiscal year 2027 revenue of $16 billion plus, indicating strong growth ahead.
- →Core Sanmina business is expected to grow at high single digits into 2027 and 2028.
- →ZT Systems is anticipated to contribute $6-$7 billion revenue in FY ’27, with opportunities to expand customer base beyond legacy clients.
- →Growth is driven by AI infrastructure, cloud, communication networks, industrial and energy, medical, defense, aerospace, and automotive segments.
- →New accelerated compute products scheduled for late FY ’26, with significant revenue impact expected in FY ’27.
- →Continued investments in R&D and vertical integration to capture growth and enhance capabilities.
- →Supply chain challenges present, especially in material availability, but managed closely to avoid revenue risk.
- →Book-to-bill ratio above 1.1 indicates strong backlog and demand.
- →Global manufacturing footprint and IT system support capacity expansion for future growth.
📈 Profitability & Margins
Rank 3- →Sanmina expects fiscal year 2026 non-GAAP diluted EPS in the range of $10.75 to $11.35.
- →Non-GAAP operating margin for fiscal 2026 is guided between 6.3% to 6.6%.
- →Revenue outlook for fiscal 2026 is $13.7 billion to $14.3 billion, reflecting approximately 73% year-over-year growth.
- →Fiscal year 2027 revenue target is $16 billion plus, driven by continued growth in core Sanmina and ZT Systems businesses.
- →Core Sanmina business expected to grow high single digits; ZT Systems business anticipated to contribute $6 billion to $7 billion in revenue.
- →R&D investment will increase to support transition from EMS to value-add ODM services, preparing for future growth.
- →Operating leverage and disciplined cost management support margin expansion and EPS growth.
- →Free cash flow generation remains strong, enabling reinvestment and shareholder returns.
🏗️ Capital Expenditure Plans
Yes- →Sanmina is continuing to make strategic capital expenditures to support future growth, with Q3 CapEx expected around $95 million.
- →Investments include incremental power, liquid cooling, and test cell capacity at ZT Systems to be production-ready for next-gen accelerated compute.
- →The company is investing in engineering capabilities, particularly R&D, to transition ZT Systems from EMS to value-add ODM services and support AI business growth.
- →There is ongoing investment in new technologies such as liquid cooling, custom optical modules, mechanical racks, busbars, and high-technology printed circuit boards.
- →CapEx is timed and planned strategically, with some delay in Q2 but expected to resume ramp-up moving forward.
- →Management emphasizes disciplined investment with ROI focus and maintaining a strong balance sheet, targeting long-term organic growth and margin expansion.
- →Additional strategic acquisitions/partnerships will be evaluated against ROI criteria to accelerate growth.
💰 Fundraising & Capital Structure
No- →No explicit mention of new fundraising through debt or equity in the provided transcript.
- →Company emphasizes maintaining a strong balance sheet and liquidity position.
- →Currently has no outstanding borrowings on $1.5 billion revolver, with substantial liquidity (~$3.7 billion) to support growth.
- →Focus on disciplined capital allocation: investing in business growth, evaluating strategic acquisitions, managing balance sheet to achieve investment-grade ratings.
- →Board authorized additional $600 million of share repurchases with no expiration date, indicating confidence in capital position.
- →Long-term target leverage ratio is 1.0x to 2.0x; leverage currently low (0.56x) but expected to increase modestly to support working capital needs.
- →No indication of immediate plans for raising capital via debt or equity.
📋 Order Book & Pipeline
Yes- →Book-to-bill ratio was over 1.1:1 as of the latest quarter, indicating more orders than shipments.
- →The company could have shipped more products last quarter if all required parts were available.
- →Demand, especially in core Sanmina business areas like communication networks and cloud infrastructure, has grown over 20% year-over-year for six consecutive quarters.
- →New wins in the ZT Systems business include multiple hyperscalers and ODMs; future production schedules are being finalized.
- →The orderbook includes strong bookings from cloud customers, hyperscalers, CSPs, OEMs, and neoclouds.
- →Supply chain challenges, especially with certain components like memory and custom ASICs, require daily management but have been factored into guidance.
- →Overall demand outlook remains strong, with confidence to achieve $16 billion-plus revenue in fiscal year 2027.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
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Frequently Asked Questions
What were Sanmina Corporation Q2 FY26 results?
- Sanmina projects fiscal year 2027 revenue of $16 billion plus, indicating strong growth ahead. - Sanmina expects fiscal year 2026 non-GAAP diluted EPS in the range of $10.75 to $11.35.
What is Sanmina Corporation share price analysis?
Sanmina Corporation currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 55.0 with a market cap of $14,109. Investors should review the full earnings analysis for detailed insights.
Is Sanmina Corporation planning capital expenditure?
- Sanmina is continuing to make strategic capital expenditures to support future growth, with Q3 CapEx expected around $95 million.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.