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what it is
Sanmina builds the electronics guts, boxes, and systems that other tech and industrial companies sell under their own brands.
how it gets paid
Last year Sanmina made $8.1B in revenue.
why it's growing
Revenue grew 7.4% last year. Latest-quarter revenue hit about $3.2B, up from roughly $2.0B a year earlier, according to the company filing.
what just happened
Sanmina opened fiscal 2026 with 59% revenue growth, but the market fixated on guidance instead of the surge.
At a glance
B+ balance sheet — decent shape, but not bulletproof
80/100 earnings predictability — you can trust these numbers
20.7x trailing p/e — priced about right
14.5% return on capital — nothing to write home about
xvary composite: 66/100 — average
What they do
Sanmina builds the electronics guts, boxes, and systems that other tech and industrial companies sell under their own brands.
This business wins because customers hate moving complex manufacturing once it works. Switching costs → changing suppliers is painful and risky → so what: your customer sticks around when failures can shut down a product line. Sanmina runs with 39,000 employees and gets 83% of sales outside the U.S., which gives you global scale that smaller contract manufacturers cannot match.
How they make money
$8.1B
annual revenue · their business grew +7.4% last year
total revenue
$8.1B
+7.4%
The products that matter
builds and integrates complex electronics
Electronics Manufacturing Services
$8.1B revenue
it's the whole $8.1B business. sanmina manufactures and integrates systems for other companies, and that scale helped drive 7.4% growth last year.
core
cloud and communications builds
Cloud & AI Infrastructure
$3.2B recent quarter
recent growth was driven by communications networks and cloud & ai infrastructure, with quarterly revenue reaching nearly $3.2B. that's where the step-change is showing up first.
current driver
acquired server-system contribution
ZT Systems integration
added in october
management tied the recent 59% revenue jump to the october acquisition of ZT Systems. if that contribution stays accretive, the earnings base looks different from the one investors knew a year ago.
swing factor
Key numbers
$164
18-month target
That sits 31% above $125.22, which means you do not need perfect execution for the stock to work.
59.0%
quarterly growth
Latest-quarter revenue rose to nearly $3.2B, which tells you the business is not inching forward. It is lurching higher.
7.6%
operating margin
Margin → profit left after running the business → so what: this is still a factory business, not a software tollbooth.
14.5%
return on capital
Return on capital → profit earned on money invested → so what: Sanmina is producing decent returns for a manufacturer.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $2.0B (23% of capital)
- net profit margin 4.5% — keeps 4 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SANM 3 years ago → it's now worth $20,990.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Sanmina opened fiscal 2026 with 59% revenue growth, but the market fixated on guidance instead of the surge.
Latest-quarter revenue hit about $3.2B, up from roughly $2.0B a year earlier, according to the company filing. The provided fiscal 2026 quarterly earnings track also points to a sharp full-year step-up versus fiscal 2025.
$3.2B
revenue
$0.89
eps
7.6%
gross margin
the number that mattered
Revenue growth of 59% mattered most because this stock is being repriced around growth, not around a mature 7.6% margin profile.
-
sanmina corp. surged out of the gate in fiscal 2026. (year ends october 3, 2026.) earnings for the december quarter clocked in at $2.38 a share, up 65% from the prior-year period and above management’s earlier outlook of $1.95 to $2.25.
-
revenues jumped 59%, to nearly $3.2 billion.the growth was powered by the company’s progress in the communications networks and cloud & ai infrastructure end markets, reflecting contributions from october’s acquisition of zt systems, as well as healthy gains in legacy operations. aside from lifting the top line, the addition of zt was also accretive to earnings out of the gate.
-
the near-term outlook is promising, as well.
-
at the midpoint of management’s guidance, march-quarter revenues are estimated to rise 64%, to $3.25 billion, while earnings should climb about 70%, to $2.40 a share.
-
zt systems figures to remain the key driver of the top line.the company also sees solid growth opportunities within the legacy business, indicating that revenues there ought to advance at a high-single-digit rate for the full fiscal year. overall, the pipeline of new projects appears to be skewed toward the cloud and ai infrastructure space, though other markets, particularly energy, where customers are trying to keep up with the power demands of data centers, and defense and aerospace, should provide growth opportunities, as well.
source: company earnings report, 2026
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What could go wrong
the #1 risk is ZT Systems integration and cloud infrastructure demand holding up after the acquisition pop.
med
ZT Systems integration
recent growth was explicitly tied to the october ZT Systems acquisition. if integration slips, the fastest-growing part of the story also becomes the easiest part to question.
the recent quarter hit nearly $3.2B of revenue and $2.38 of EPS. if those post-deal gains fade, today's valuation math changes quickly.
med
thin-margin manufacturing
sanmina runs an $8.1B business at a 4.1% net margin, and the recent quarter showed a 3.0% margin. that's not much buffer if mix, utilization, or execution turns against them.
when every $1 of revenue only leaves a few cents behind, even modest cost pressure can hit profit harder than revenue suggests.
med
global manufacturing and compliance exposure
this is a global electronics manufacturing footprint. cross-border operations bring the usual mix of compliance, supply-chain, and geopolitical friction whether investors feel like pricing it in or not.
with $2.0B of long-term debt and a B+ balance sheet, sanmina can absorb some disruption. not endless disruption.
an $8.1B revenue base sounds sturdy. a 4.1% net margin says the cushion is thinner than it looks.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
march-quarter follow-through
management guided to $3.25B of revenue and $2.40 of EPS at the midpoint. if sanmina lands there again, the post-deal acceleration starts to look durable.
margin
whether 3.0% quarterly margin rebounds
4.1% net margin on the full year is already thin. if recent quarterly margin stays around 3.0%, revenue growth will have to do all the heavy lifting.
growth
how much of the step-up is real operating momentum
last year's revenue grew 7.4%, but the latest quarter jumped 59%. that gap tells you the market is still sorting legacy growth from acquisition math.
integration
ZT Systems staying accretive
management said ZT was accretive out of the gate. if that stops being true, the cleanest part of the bull case gets messy fast.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts think SANM has better-than-average odds of outperforming over the next 12 months.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not chaos either.
chart momentum
top 20%
technical score 2 — recent price action has been stronger than most stocks in the coverage set.
earnings predictability
80 / 100
management tends to guide within a range it can actually hit. that matters more when the story is changing this fast.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 160 buyers vs. 150 sellers in 4q2025. total institutional holdings: 54.3M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$99
$228
$125
current price
$164
target midpoint · +31% from current · 3-5yr high: $230 (+85% · 16% ann'l return)
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