Sanmina Reports Stellar Quarterly Performance Fueled by Acquisition and AI Demand

Sanmina Corporation has kicked off its 2026 fiscal year with powerful financial results for the first quarter. The electronics manufacturing services provider posted a dramatic surge in revenue alongside a significant increase in earnings per share, highlighting the company's current momentum. A key question for investors is whether this growth phase, driven significantly by a recent major acquisition, can be maintained.

The company's latest earnings report revealed robust figures across key metrics:
* Revenue reached $3.19 billion, marking a substantial 59% increase compared to the same period last year.
* Non-GAAP earnings per share came in at $2.38, a notable rise from $1.44 in the prior-year quarter.
* During the quarter, Sanmina repurchased 516,000 of its own shares at a total cost of $79 million.

Acquisition Integration and Sector Demand Drive Growth

Two primary factors are behind the impressive revenue jump. The successful integration of ZT Systems has been a major contributor. Concurrently, Sanmina is capitalizing on sustained, high demand within cloud infrastructure, artificial intelligence (AI) applications, and communication networks. These segments were identified as the core growth engines for the quarter.

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This operational strength is further evidenced by the company's cash generation and balance sheet health. Sanmina produced $179 million in operating cash flow, with free cash flow standing at $92 million. The company holds $1.42 billion in cash and equivalents, providing a solid financial foundation for future strategic initiatives.

Management Provides Confident Near-Term Guidance

Looking ahead, Sanmina's leadership has issued a stable outlook for the second quarter of fiscal 2026. The company anticipates revenue to be in the range of $3.1 billion to $3.4 billion. This forecast suggests Sanmina is positioned to sustain the elevated performance level achieved in the first quarter.

Investors can expect more detailed insights into the company's progress with the next quarterly report, which is scheduled for release on April 27.