Sanmina (SANM) beats Q4 estimates, sees strong demand ahead
Key Points
- Revenue: $2.1 billion (vs. estimate $2.05 billion)
- Non-GAAP EPS: $1.67 (vs. estimate $1.57)
- GAAP EPS: $0.88
- GAAP Operating Margin: 3.7%
- Non-GAAP Operating Margin: 6.0%
- Cash Flow from Operations: $199 million in Q4
- Free Cash Flow: $137 million
- Share Repurchases: $114 million in FY 2025
- Ending Cash: $926 million
Quarter Highlights
Revenue grew ~4% year-over-year to $2.1 billion, with notable strength in Communications Networks and Cloud & AI Infrastructure.
Non-GAAP EPS rose 17% from $1.43 last year, reflecting margin expansion and cost discipline.
Operating cash flow more than tripled versus Q4 2024, aided by improved working capital management.
CEO Statement and Outlook
CEO Jure Sola said results “met or exceeded our outlook,” citing strong demand across cloud and AI markets.
He called the ZT Systems acquisition “transformative,” expanding scale and positioning Sanmina to capitalize on growing AI infrastructure needs.
For Q1 FY 2026, the company expects:
- Revenue: $2.9 – $3.2 billion
- Non-GAAP EPS: $1.95 – $2.25
Financial Summary
| Metric | Q4 FY 2025 | Q4 FY 2024 | YoY Change |
|---|---|---|---|
| Revenue | $2.10 B | $2.02 B | +4% |
| GAAP EPS | $0.88 | $1.09 | –19% |
| Non-GAAP EPS | $1.67 | $1.43 | +17% |
| GAAP Op. Margin | 3.7% | 4.4% | –70 bps |
| Non-GAAP Op. Margin | 6.0% | 5.3% | +70 bps |
| Operating Cash Flow | $199 M | $52 M | +283% |
Capital Return
Repurchased 1.44 million shares for $114 million during FY 2025.
Ended the year with $926 million in cash and equivalents.
About Sanmina
Sanmina is a Fortune 500 manufacturing solutions provider serving industrial, medical, defense, automotive, communications networks, and AI/cloud infrastructure markets.
Headquarters: San Jose, California.
Key Takeaways
Sanmina exceeded earnings and revenue expectations on strong AI and cloud infrastructure demand.
The company’s FY 2026 guidance implies robust sequential growth, reflecting contributions from the newly acquired ZT Systems.
While GAAP margins dipped due to integration and restructuring costs, non-GAAP profitability improved, highlighting operational leverage and cost control.