Sanmina (NASDAQ: SANM) lifts 2026 outlook and adds $600M buyback
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sanmina Corporation reported strong second-quarter fiscal 2026 results and announced a major new share repurchase program. Revenue reached $4.01 billion, with GAAP diluted EPS of $1.70 and non-GAAP diluted EPS of $3.16. Non-GAAP operating margin was 6.4%, supported by cash flow from operations of $399 million and free cash flow of $342 million. The company repurchased 1.1 million shares for $160 million in the quarter and ended with $1.58 billion in cash and cash equivalents. Management guided third-quarter revenue to $3.2–$3.5 billion and fiscal 2026 revenue to $13.7–$14.3 billion, with non-GAAP EPS expected between $10.75 and $11.35. The board authorized a new $600 million share repurchase program with no expiration date.
Positive
- Strong growth and profitability: Q2 fiscal 2026 revenue reached $4.01 billion with non-GAAP operating margin of 6.4% and non-GAAP diluted EPS of $3.16, indicating significantly larger scale and improved earnings versus the prior-year period shown in the income statement.
- Robust cash generation and capital return: Cash flow from operations was $399 million and free cash flow $342 million, supporting $160 million of share repurchases in Q2 and a newly authorized $600 million buyback program with no expiration date.
Negative
- Higher leverage and acquisition-related costs: Long-term debt rose to $1.999 billion from $282.974 million at September 27, 2025, and Q2 included $72.584 million of acquisition, integration and other expenses plus a $59 million fair value adjustment to contingent consideration related to the ZT acquisition.
Insights
Sanmina posts strong Q2 growth, robust cash flow and launches a sizable $600M buyback.
Sanmina delivered Q2 fiscal 2026 revenue of $4.01 billion and non-GAAP operating margin of 6.4%, with non-GAAP diluted EPS at $3.16. This compares against much lower prior-year revenue in the income statement, highlighting substantial top-line expansion, partly tied to the ZT Systems acquisition and strong cloud and AI demand.
Cash generation was notable: cash flow from operations reached $399 million and free cash flow was $342 million. The balance sheet shows cash and cash equivalents of $1.58 billion alongside higher long-term debt of $1.999 billion, reflecting acquisition financing but still supporting significant liquidity.
Management guided Q3 revenue to $3.2–$3.5 billion and fiscal 2026 revenue to $13.7–$14.3 billion, with non-GAAP EPS of $10.75–$11.35. The new $600 million share repurchase authorization, after exhausting the prior program by March 28, 2026, signals continued capital returns funded by strong free cash flow, while integration and acquisition-related costs remain elevated.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $4.01 billion
GAAP Diluted EPS: $1.70 per share
Non-GAAP Diluted EPS: $3.16 per share
+5 more
8 metrics
Q2 2026 Revenue
$4.01 billion
Second quarter fiscal 2026 net sales
GAAP Diluted EPS
$1.70 per share
Q2 fiscal 2026 net income attributable to common shareholders
Non-GAAP Diluted EPS
$3.16 per share
Q2 fiscal 2026 after specified adjustments
Cash from Operations
$399 million
Q2 fiscal 2026 cash provided by operating activities
Free Cash Flow
$342 million
Q2 fiscal 2026 cash from operations minus capex
Cash and Equivalents
$1.575 billion
Cash and cash equivalents as of March 28, 2026
Long-term Debt
$1.999 billion
Long-term debt as of March 28, 2026
New Buyback Authorization
$600 million
Board-approved common stock repurchase program, no expiration
Key Terms
non-GAAP, free cash flow, contingent consideration, fair value step up, +2 more
6 terms
non-GAAP financial
"Non-GAAP (1) operating margin: 6.4% • Non-GAAP (1) diluted EPS: $3.16"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
free cash flow financial
"Free cash flow (2) $342 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
contingent consideration financial
"include a $59M fair value adjustment to contingent consideration alongside certain employee compensation"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
fair value step up financial
"Relates to the amortization of the fair value step up on inventory from the ZT acquisition."
distressed customers financial
"Relates to accounts receivable and inventory write-downs or recoveries associated with distressed customers."
forward-looking statements regulatory
"The statements above relating to our financial outlook ... constitute forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Revenue: $4.01 billion · Guidance included
Q2 fiscal 2026
Revenue
$4.01 billion
GAAP diluted EPS
$1.70
Non-GAAP diluted EPS
$3.16
Non-GAAP operating margin
6.4%
Guidance
Q3 2026 revenue $3.2–$3.5 billion; fiscal 2026 revenue $13.7–$14.3 billion with non-GAAP EPS $10.75–$11.35.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934
(April 27, 2026 )
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of principal executive offices, including zip code) | ||||||||||||||||||||
(Registrant's telephone number, including area code) | ||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 27, 2026, Sanmina Corporation (the “Company”) issued the press release attached as Exhibit 99.1 announcing unaudited financial results for its fiscal quarter ended March 28, 2026.
The information set forth in this Item 2.02, including the exhibit hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. In addition, the information in this Item 2.02 shall not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
Exhibit No | Description | |||||||
99.1 | Press Release issued by Sanmina Corporation on April 27, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | |||||||
SIGNATURE
Pursuant to the Requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SANMINA CORPORATION | |||||||||||
| By: | /s/ JONATHAN FAUST | ||||||||||
| Jonathan Faust | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
| Date: | April 27, 2026 | ||||||||||
Exhibit 99.1
| FINANCIAL NEWS | ||||||||||||||
Sanmina Reports Second Quarter Fiscal 2026 Financial Results
Board of Directors Authorize $600 Million Share Repurchase Program
San Jose, CA – April 27, 2026. Sanmina Corporation (“Sanmina” or the “Company”) (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the second quarter ended March 28, 2026 and outlook for its third fiscal quarter ending June 27, 2026.
Second Quarter Fiscal 2026 Financial Highlights •Revenue: $4.01 billion •GAAP operating margin: 3.9% •GAAP diluted EPS: $1.70 •Non-GAAP(1) operating margin: 6.4% •Non-GAAP(1) diluted EPS: $3.16 | ||
Additional Highlights •Cash flow from operations: $399 million •Free cash flow(2): $342 million •Share repurchases: 1.1 million shares for $160 million •Ending cash and cash equivalents: $1.58 billion | ||
(1)See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release.
(2)Free cash flow is defined as net cash provided by operating activity adjusted for net purchases of property and equipment. See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release.
“We delivered great results for the second quarter. Revenue, non-GAAP operating margin and non-GAAP diluted EPS all exceeded our outlook,” stated Jure Sola, Chairman and CEO of Sanmina Corporation. “ZT Systems revenue significantly exceeded our expectations, driven by strong execution and customer demand, resulting in new accelerated compute shipments previously expected in the second half of the year to shift into the second quarter. In addition, core Sanmina grew 7.3% year-over-year, in line with expectations.”
“Based on our results for the first half of the year and our outlook for the third quarter, we expect to deliver revenue in the range of $13.7 to $14.3 billion for fiscal 2026, and we see strong growth potential ahead. We remain focused on profitable growth, margin expansion, cash generation and shareholder value creation,” Sola concluded.
Third Quarter Fiscal 2026 Outlook
•Revenue between $3.2 billion to $3.5 billion
•Non-GAAP operating margin between 6.4% to 6.9%*
•Non-GAAP diluted earnings per share between $2.55 to $2.85*
Fiscal Year 2026 Outlook
•Revenue between $13.7 billion to $14.3 billion
•Non-GAAP operating margin between 6.3% to 6.6%*
•Non-GAAP diluted earnings per share between $10.75 to $11.35*
*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort.
Board of Directors Authorize Share Repurchase Program
Sanmina's Board of Directors has authorized the repurchase of up to $600 million of Sanmina's common stock. The stock repurchase program has no expiration date. The Company exhausted its prior repurchase program as of March 28, 2026.
“Our Board’s new share repurchase authorization reflects our strong balance sheet and free cash flow generation. This gives us the capacity to continue returning capital to shareholders while investing in the business and maintaining our leverage within our target range, consistent with our capital allocation framework," stated Jon Faust, Executive Vice President and Chief Financial Officer of Sanmina.
Safe Harbor Statement
The statements above relating to our financial outlook for the third quarter fiscal 2026 and fiscal year 2026 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including the risk that the integration of and expected benefits from the ZT Systems acquisition may not be realized or may take longer to realize than anticipated; adverse changes in the key markets we target, in particular the cloud and AI infrastructure sectors; the impact of recent or future changes in tariffs and trade policy, which may adversely affect our costs, supply chain, and customer demand; our reliance on a limited number of customers for a substantial portion of our sales; risks arising from our international operations and expansion into new geographic markets; geopolitical uncertainty, including relating to the conflict in the Middle East, and the other risk factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission.
The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.
Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the second quarter and outlook for the third quarter of fiscal 2026 on Monday, April 27, 2026 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference call will also be webcast live over the Internet. You can log on to the live webcast at Q2'26 Earnings. Additional information in the form of a slide presentation is available on Sanmina’s website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 18902#.
About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks, and cloud and AI infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.
Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610
| Sanmina Corporation | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (in thousands) | |||||||||||
| (GAAP) | |||||||||||
| (Unaudited) | |||||||||||
| March 28, 2026 | September 27, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,575,517 | $ | 926,267 | |||||||
| Accounts receivable, net | 2,229,744 | 1,400,129 | |||||||||
| Contract assets | 473,144 | 425,944 | |||||||||
| Inventories | 3,026,666 | 1,988,462 | |||||||||
| Prepaid expenses and other current assets | 306,365 | 124,656 | |||||||||
| Total current assets | 7,611,436 | 4,865,458 | |||||||||
| Property, plant and equipment, net | 993,331 | 682,354 | |||||||||
| Deferred income tax assets | 326,415 | 171,218 | |||||||||
| Goodwill | 358,783 | 30,386 | |||||||||
| Other assets | 379,124 | 108,757 | |||||||||
| Total assets | $ | 9,669,089 | $ | 5,858,173 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 2,508,961 | $ | 1,578,895 | |||||||
| Accrued liabilities | 312,473 | 179,605 | |||||||||
| Deferred revenue and customer advances | 1,231,292 | 878,474 | |||||||||
| Accrued payroll and related benefits | 217,330 | 167,541 | |||||||||
| Short-term debt, including current portion of long-term debt | 172,000 | 17,500 | |||||||||
| Total current liabilities | 4,442,056 | 2,822,015 | |||||||||
| Long-term liabilities: | |||||||||||
| Long-term debt | 1,999,762 | 282,974 | |||||||||
| Other liabilities | 615,462 | 214,021 | |||||||||
| Total long-term liabilities | 2,615,224 | 496,995 | |||||||||
| Stockholders' equity | 2,611,809 | 2,539,163 | |||||||||
| Total liabilities and stockholders' equity | $ | 9,669,089 | $ | 5,858,173 | |||||||
| Sanmina Corporation | |||||||||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||
| (GAAP) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | ||||||||||||||||||||
| Net sales | $ | 4,013,271 | $ | 1,984,080 | $ | 7,202,964 | $ | 3,990,428 | |||||||||||||||
| Cost of sales | 3,659,480 | 1,807,845 | 6,606,811 | 3,646,278 | |||||||||||||||||||
| Gross profit | 353,791 | 176,235 | 596,153 | 344,150 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 113,549 | 76,313 | 228,435 | 147,158 | |||||||||||||||||||
| Research and development | 7,991 | 7,316 | 16,649 | 14,340 | |||||||||||||||||||
| Acquisition, integration and others | 72,584 | — | 115,947 | — | |||||||||||||||||||
| Amortization of intangibles | 1,865 | — | 3,052 | — | |||||||||||||||||||
| Restructuring | 794 | 990 | 1,464 | 2,426 | |||||||||||||||||||
| Total operating expenses | 196,783 | 84,619 | 365,547 | 163,924 | |||||||||||||||||||
| Operating income | 157,008 | 91,616 | 230,606 | 180,226 | |||||||||||||||||||
| Interest income | 8,433 | 3,723 | 16,491 | 7,119 | |||||||||||||||||||
| Interest expense | (32,138) | (4,979) | (56,860) | (9,980) | |||||||||||||||||||
| Other income (expense), net | (2,165) | (1,955) | 2,483 | (2,684) | |||||||||||||||||||
| Interest and other, net | (25,870) | (3,211) | (37,886) | (5,545) | |||||||||||||||||||
| Income before income taxes | 131,138 | 88,405 | 192,720 | 174,681 | |||||||||||||||||||
| Provision for income taxes | 33,323 | 17,890 | 43,150 | 33,282 | |||||||||||||||||||
| Net income before noncontrolling interest | 97,815 | 70,515 | 149,570 | 141,399 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | 4,169 | 6,307 | 6,638 | 12,188 | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 93,646 | $ | 64,208 | $ | 142,932 | $ | 129,211 | |||||||||||||||
| Net income attributable to common shareholders per share: | |||||||||||||||||||||||
| Basic | $ | 1.72 | $ | 1.18 | $ | 2.63 | $ | 2.38 | |||||||||||||||
| Diluted | $ | 1.70 | $ | 1.16 | $ | 2.58 | $ | 2.32 | |||||||||||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||||||||||||||
| Basic | 54,331 | 54,405 | 54,245 | 54,304 | |||||||||||||||||||
| Diluted | 55,108 | 55,511 | 55,313 | 55,681 | |||||||||||||||||||
| Sanmina Corporation | |||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 28, 2026 | December 27, 2025 | March 29, 2025 | |||||||||||||||||||||
| GAAP Operating income | $ | 157,008 | $ | 73,598 | $ | 91,616 | |||||||||||||||||
| GAAP Operating margin | 3.9 | % | 2.3 | % | 4.6 | % | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Stock compensation expense (1) | 24,066 | 23,620 | 15,790 | ||||||||||||||||||||
| Amortization of inventory fair value adjustment (2) | — | 49,000 | — | ||||||||||||||||||||
| Amortization of intangible assets (3) | 2,332 | 1,720 | — | ||||||||||||||||||||
| Acquisition, integration and others (4) | 72,584 | 43,363 | 2,091 | ||||||||||||||||||||
| Distressed customer charges (5) | — | — | 159 | ||||||||||||||||||||
| Restructuring | 794 | 670 | 990 | ||||||||||||||||||||
| Non-GAAP Operating income | $ | 256,784 | $ | 191,971 | $ | 110,646 | |||||||||||||||||
| Non-GAAP Operating margin | 6.4 | % | 6.0 | % | 5.6 | % | |||||||||||||||||
| GAAP Net income attributable to common shareholders | $ | 93,646 | $ | 49,286 | $ | 64,208 | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Operating income adjustments (see above) | 99,776 | 118,373 | 19,030 | ||||||||||||||||||||
| Legal (6) | — | (3,745) | — | ||||||||||||||||||||
| Gain on sale of investment (7) | — | (4,710) | — | ||||||||||||||||||||
| Loss on debt extinguishment | — | 1,345 | — | ||||||||||||||||||||
| Adjustments for taxes (8) | (19,497) | (28,199) | (5,201) | ||||||||||||||||||||
| Non-GAAP Net income attributable to common shareholders | $ | 173,925 | $ | 132,350 | $ | 78,037 | |||||||||||||||||
| GAAP Net income attributable to common shareholders per share: | |||||||||||||||||||||||
| Basic | $ | 1.72 | $ | 0.91 | $ | 1.18 | |||||||||||||||||
| Diluted | $ | 1.70 | $ | 0.89 | $ | 1.16 | |||||||||||||||||
| Non-GAAP Net income attributable to common shareholders per share: | |||||||||||||||||||||||
| Basic | $ | 3.20 | $ | 2.44 | $ | 1.43 | |||||||||||||||||
| Diluted | $ | 3.16 | $ | 2.38 | $ | 1.41 | |||||||||||||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||||||||||||||
| Basic | 54,331 | 54,160 | 54,405 | ||||||||||||||||||||
| Diluted | 55,108 | 55,519 | 55,511 | ||||||||||||||||||||
| (1) | Stock compensation expense | ||||||||||||||||||||||
| Cost of sales | $ | 5,535 | $ | 5,995 | $ | 4,931 | |||||||||||||||||
| Selling, general and administrative | 18,127 | 17,274 | 10,580 | ||||||||||||||||||||
| Research and development | 404 | 351 | 279 | ||||||||||||||||||||
| Total | $ | 24,066 | $ | 23,620 | $ | 15,790 | |||||||||||||||||
| (2) | Relates to the amortization of the fair value step up on inventory from the ZT acquisition. | ||||||||||||||||||||||
| (3) | Relates to amortization of intangible assets acquired from the ZT acquisition. | ||||||||||||||||||||||
| (4) | Q2'26 results include a $59M fair value adjustment to contingent consideration alongside certain employee compensation and professional services related to the ZT acquisition. Q1'26 figures largely reflect bridge loan facility costs and legal fees in connection with the ZT acquisition. | ||||||||||||||||||||||
| (5) | Relates to accounts receivable and inventory write-downs or recoveries associated with distressed customers. | ||||||||||||||||||||||
| (6) | Represents expenses, charges and recoveries associated with certain legal matters. | ||||||||||||||||||||||
| (7) | Relates to gain on sale of equity interest. | ||||||||||||||||||||||
| (8) | Adjustments for taxes include the tax effects of the various adjustments we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items. | ||||||||||||||||||||||
| Sanmina Corporation | ||||||||||||||||||||||||||
| Condensed Consolidated Cash Flow | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| (GAAP) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Net income before noncontrolling interest | $ | 97,815 | $ | 70,515 | $ | 149,570 | $ | 141,399 | ||||||||||||||||||
Depreciation and intangibles amortization | 47,085 | 28,208 | 86,616 | 60,053 | ||||||||||||||||||||||
| Amortization of inventory fair value adjustment | — | — | 49,000 | — | ||||||||||||||||||||||
| Deferred income taxes | 49,628 | (802) | 46,397 | 4,534 | ||||||||||||||||||||||
| Change in fair value of contingent consideration | 59,000 | — | 59,000 | — | ||||||||||||||||||||||
Other, net | 25,007 | 14,723 | 46,032 | 30,541 | ||||||||||||||||||||||
Net change in net working capital | 120,223 | 44,214 | 140,871 | (15,731) | ||||||||||||||||||||||
Cash provided by operating activities | 398,758 | 156,858 | 577,486 | 220,796 | ||||||||||||||||||||||
Purchases of investments | — | (14,340) | — | (14,640) | ||||||||||||||||||||||
| Proceeds from sales of investments | — | 49,309 | 8,710 | 49,309 | ||||||||||||||||||||||
Net purchases of property, plant and equipment | (56,621) | (30,647) | (143,390) | (47,568) | ||||||||||||||||||||||
| Cash paid for businesses acquisition, net of cash acquired | (1,132) | — | (1,356,933) | — | ||||||||||||||||||||||
Cash used in investing activities | (57,753) | 4,322 | (1,491,613) | (12,899) | ||||||||||||||||||||||
Proceeds from long-term debt | — | — | 2,200,000 | — | ||||||||||||||||||||||
Repayment of borrowings | — | (4,375) | (301,875) | (8,750) | ||||||||||||||||||||||
| Repurchases of common stock | (159,450) | (84,340) | (239,244) | (100,453) | ||||||||||||||||||||||
| Payments for tax withholding on stock-based compensation | (22,360) | (29,312) | (56,075) | (37,655) | ||||||||||||||||||||||
| Debt issuance costs | — | — | (28,703) | — | ||||||||||||||||||||||
Cash provided by (used in) financing activities | (181,810) | (118,027) | 1,574,103 | (146,858) | ||||||||||||||||||||||
Effect of exchange rate changes | (225) | 1,165 | (412) | (179) | ||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash equivalents | $ | 158,970 | $ | 44,318 | $ | 659,564 | $ | 60,860 | ||||||||||||||||||
Free cash flow: | ||||||||||||||||||||||||||
Cash provided by operating activities | $ | 398,758 | $ | 156,858 | $ | 577,486 | $ | 220,796 | ||||||||||||||||||
Net purchases of property, plant and equipment | (56,621) | (30,647) | (143,390) | (47,568) | ||||||||||||||||||||||
| $ | 342,137 | $ | 126,211 | $ | 434,096 | $ | 173,228 | |||||||||||||||||||
Schedule 1
The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.
Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company’s strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.
Additional information regarding the economic substance of each exclusion, management’s use of the resultant non-GAAP measures, the material limitations of management’s approach and management’s methods for compensating for such limitations is provided below.
Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company’s results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company’s core results with those of its competitors.
Restructuring, Acquisition, Integration and Other Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities, and those associated with the acquisition, integration and other expenses of acquired businesses including fair value adjustments related to contingent consideration liability, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company’s competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company’s core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company’s competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Therefore, management also reviews GAAP results including these amounts.
Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company’s liquidity. In addition, given the fact that the Company’s competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors.
Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company’s liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors because the Company’s competitors complete acquisitions at different times and for different amounts than the Company.
Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of
assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company’s ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company’s competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.
Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company's core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.
FAQ
How did Sanmina (SANM) perform in Q2 fiscal 2026?
Sanmina delivered strong Q2 fiscal 2026 results with revenue of $4.01 billion and GAAP diluted EPS of $1.70. Non-GAAP diluted EPS reached $3.16 and non-GAAP operating margin was 6.4%, reflecting higher scale and improved profitability versus the prior-year period shown.
What guidance did Sanmina (SANM) give for Q3 fiscal 2026?
For Q3 fiscal 2026, Sanmina expects revenue between $3.2 billion and $3.5 billion. The company projects non-GAAP operating margin of 6.4%–6.9% and non-GAAP diluted EPS of $2.55–$2.85, reflecting continued focus on margin performance and earnings growth.
What is Sanmina’s fiscal 2026 full-year outlook?
Sanmina expects fiscal 2026 revenue between $13.7 billion and $14.3 billion. The company targets non-GAAP operating margin of 6.3%–6.6% and non-GAAP diluted EPS of $10.75–$11.35, based on results for the first half and its outlook for the third quarter.
How much cash flow and free cash flow did Sanmina generate?
In Q2 fiscal 2026, Sanmina generated cash flow from operations of $399 million. Free cash flow was $342 million, after $56.621 million in net purchases of property, plant and equipment, underscoring strong cash generation to support growth investments and shareholder returns.
How did the ZT acquisition affect Sanmina’s results?
The ZT Systems acquisition contributed to higher revenue and expenses. Q2 fiscal 2026 included $72.584 million of acquisition, integration and other costs and a $59 million fair value adjustment to contingent consideration, while management highlighted ZT revenue significantly exceeding expectations.