Sanmina Corp (SANM)

Price$219.41Cached quoteAs of 2026-10-08 02:59 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because rapid growth already carries a meaningful valuation.

At the observed market price, Sanmina trades at about 36 times trailing reported earnings of roughly $5.58 per share, about 17 times the midpoint of management's adjusted fiscal-2026 earnings guidance of $11.90-$12.20 per share, and about 18 times trailing free cash flow. Free cash flow is cash left after operating the business and buying long-lived equipment; trailing free cash flow is about $594 million. Those multiples are not cheap for a cyclical manufacturer, but they are reasonable if ZT-driven profit growth persists, supporting Fair-priced.

Big pictureZT Systems has accelerated growth sharply, while making results more concentrated and cycle-sensitive.

Sanmina's revenue was $8.13 billion in fiscal 2025 after $7.57 billion in 2024 and $8.94 billion in 2023, showing meaningful historical cyclicality. The first nine months of fiscal 2026 produced $10.67 billion of sales, up 76.8% from a year earlier, mainly from cloud and artificial-intelligence infrastructure growth and the ZT acquisition. Nine-month gross margin improved to 9.0% from 8.7%. However, the ten largest customers supplied 67% of sales, and two customers each represented at least 10%, increasing dependence on a few large programs.

Business strengthCash generation and liquidity remain solid, although acquisition debt reduced the former balance-sheet cushion.

Trailing operating cash flow is about $901 million, and trailing capital spending is about $307 million, leaving roughly $594 million of free cash flow. Sanmina held $1.845 billion of cash against $2.172 billion of debt, so net debt was only about $327 million, roughly one-half of trailing earnings before interest, taxes, depreciation and amortization. Current assets of $7.83 billion also exceeded current liabilities of $4.40 billion. The balance sheet remains manageable, but gross debt and interest expense are now materially higher than before the ZT transaction.

What could change the storySustained cloud profits could justify today's valuation, while weak cash conversion would undermine it.

The strongest bull case is continued ZT integration: management raised fiscal-2026 revenue guidance to $14.0-$14.3 billion and adjusted earnings to $11.90-$12.20 per share, while guiding fourth-quarter adjusted operating margin to 7.5%-8.0%. The bear case is that large cloud programs are lumpy and capital-hungry. Third-quarter free cash flow fell to only $24 million after about $101 million of capital spending, and the ZT agreement still allows up to $450 million of contingent cash payments. Durable margins, recovering free cash flow and falling debt would strengthen the valuation case.

AI: News

Q3 beat, softer outlookSanmina beat third-quarter expectations and raised annual guidance, but investors disliked the next-quarter sales range.

On July 27, Sanmina reported fiscal third-quarter revenue of $3.46 billion, adjusted earnings of $3.31 per share and an 8.0% adjusted operating margin. Management raised full-year revenue guidance to $14.0-$14.3 billion and adjusted earnings guidance to $11.90-$12.20 per share, but guided fourth-quarter revenue to $3.3-$3.6 billion. The shares closed about 17% lower the following session. The softer near-term revenue outlook was a plausible concern, but timing alone cannot prove it caused the entire move.

Q2 growth surpriseA powerful second quarter showed ZT demand arriving early and gave Sanmina more capacity for buybacks.

On April 27, Sanmina reported fiscal second-quarter revenue of $4.01 billion, adjusted earnings of $3.16 per share, $399 million of operating cash flow and $342 million of free cash flow. Management said some accelerated-compute shipments expected later in the year arrived earlier than planned, while core Sanmina revenue grew 7.3% from a year earlier. The board also authorized a new $600 million share-repurchase program. Shares rose sharply the next session, consistent with investors rewarding the earnings surprise and stronger cash generation.

Q1 guidance shockStrong first-quarter results were overshadowed by softer guidance, showing how sensitive the stock is to growth expectations.

On January 26, Sanmina reported fiscal first-quarter revenue of $3.19 billion and adjusted earnings of $2.38 per share, with $179 million of operating cash flow and $92 million of free cash flow. Management then guided second-quarter revenue to $3.1-$3.4 billion. The stock fell nearly 22% the next trading day even though the reported quarter had beaten expectations. Contemporary coverage attributed the selloff mainly to the forward sales outlook, illustrating how much future cloud growth was already embedded in investor expectations.

ZT acquisition completedThe ZT deal moved Sanmina deeper into artificial-intelligence infrastructure while adding substantial debt and integration risk.

Sanmina completed its acquisition of ZT Systems' data-center infrastructure manufacturing business on October 27, 2025. The transaction created a strategic relationship under which Sanmina became a preferred U.S. new-product manufacturing partner for AMD rack and cluster-scale artificial-intelligence systems. By June 2026, Sanmina had about $2.2 billion of loans outstanding under its new credit facility, versus roughly $300 million of debt before the acquisition. ZT contributed about $4.0 billion of revenue from closing through the third quarter, making successful integration central to future value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$8.13B	$7.57B	$8.94B	$7.92B	$6.74B	$6.95B	$8.23B	$7.11B	$6.87B	$6.48B	$6.37B	$6.22B	$5.92B	$6.09B	$6.60B	$6.32B	$5.18B
Gross profit	$716.4M	$640.4M	$743.2M	$622.2M	$526.4M	$517.2M	$591.9M	$463.8M	$519.9M	$514.3M	$483.9M	$488.3M	$426.8M	$435.8M	$510.4M	$483.0M	$322.5M
Gross margin	8.81%	8.46%	8.32%	7.86%	7.81%	7.44%	7.19%	6.52%	7.57%	7.94%	7.59%	7.86%	7.21%	7.15%	7.73%	7.64%	6.23%
Research & development	$31.1M	$28.5M	$26.4M	$21.3M	$20.9M	$22.6M	$27.6M	$30.8M	$33.7M	$37.7M	$33.1M	$32.5M	$25.6M	$21.9M	$20.8M	$13.0M	$16.7M
Operating expenses	$361.8M	$304.9M	$287.6M	$272.7M	$270.5M	$298.0M	$305.8M	$344.3M	$293.4M	$289.5M	$280.8M	$288.6M	$269.2M	$298.3M	$298.4M	$278.2M	$327.1M
Operating income	$354.6M	$335.5M	$455.7M	$349.5M	$255.9M	$219.1M	$286.1M	$119.4M	$226.5M	$224.8M	$203.1M	$199.7M	$157.6M	$137.5M	$212.0M	$204.8M	−$4.7M
Operating margin	4.36%	4.43%	5.10%	4.41%	3.80%	3.15%	3.47%	1.68%	3.30%	3.47%	3.19%	3.21%	2.66%	2.26%	3.21%	3.24%	−0.09%
EBITDA	$474.0M	$457.9M	$573.9M	$458.3M	$365.6M	$333.4M	$403.1M	$238.3M	$345.2M	$336.7M	$303.7M	$297.4M	$253.7M	$237.0M	$316.6M	$294.4M	$84.2M
EBITDA margin	5.83%	6.05%	6.42%	5.79%	5.43%	4.80%	4.90%	3.35%	5.03%	5.19%	4.76%	4.78%	4.29%	3.89%	4.79%	4.66%	1.63%
Net income	$245.9M	$222.5M	$310.0M	$240.4M	$249.5M	$133.2M	$141.5M	−$95.5M	$138.8M	$187.8M	$377.3M	$197.2M	$79.4M	$180.2M	$68.9M	$122.4M	−$137.8M
Net profit margin	3.03%	2.94%	3.47%	3.04%	3.70%	1.92%	1.72%	−1.34%	2.02%	2.90%	5.92%	3.17%	1.34%	2.96%	1.04%	1.94%	−2.66%
Basic EPSper basic share	$4.56	$4.00	$5.36	$3.92	$3.82	$1.93	$2.05	-$1.37	$1.86	$2.50	$4.61	$2.38	$0.96	$2.22	$0.86	$1.55	-$1.67
Diluted EPSper diluted share	$4.46	$3.91	$5.18	$3.81	$3.72	$1.88	$1.97	-$1.37	$1.78	$2.38	$4.41	$2.27	$0.93	$2.16	$0.83	$1.48	-$1.67

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of SANM
Holder	Shares held
FMR LLC	8.03M
BlackRock, Inc.	5.5M
VANGUARD PORTFOLIO MANAGEMENT LLC	3.05M
VANGUARD CAPITAL MANAGEMENT LLC	2.33M
Invesco Ltd.	2.17M
STATE STREET CORP	1.7M
JANE STREET GROUP, LLC	1.52M
SOLA JURE	1.44M
DIMENSIONAL FUND ADVISORS LP	1.34M
GEODE CAPITAL MANAGEMENT, LLC	1.21M
ADVANCED MICRO DEVICES INC	1.15M
MORGAN STANLEY	881.56K
D. E. Shaw & Co., Inc.	846.68K
Fisher Asset Management, LLC	767.7K
BANK OF AMERICA CORP /DE/	746.85K
Allianz Asset Management GmbH	699.78K
EARNEST PARTNERS LLC	699.66K
MILLENNIUM MANAGEMENT LLC	688.39K
NORGES BANK	662.31K
VAUGHAN NELSON INVESTMENT MANAGEMENT, L.P.	546.73K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$99.7K disclosed value

Sells (SEC code S)44$61.63M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 29, 2026Form 4 · 10b5-1	Faust Jonathan PEVP & CFO	SellCommon Stock	5.0K	$265.86	$1.34M	77.0K
May 29, 2026Form 4 · 10b5-1	Faust Jonathan PEVP & CFO	SellCommon Stock	5.0K	$265.73	$1.34M	82.0K
May 26, 2026Form 4 · 10b5-1	REID ALAN McWILLIAMSEVP, Global Human Resources	SellCommon Stock	5.0K	$254.39	$1.27M	24.5K
May 8, 2026Form 4	REID ALAN McWILLIAMSEVP, Global Human Resources	SellCommon Stock	1.0K	$248.60	$248.6K	29.5K
May 6, 2026Form 4	SOLA JUREChairman & CEO	SellCommon Stock	118.4K	$228.84	$27.09M	1.23M

Review ownership filings at SEC.gov ↗

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Sanmina Corp (SANM)

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