# SANM earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/SANM) · [Earnings tab](https://www.lopjlb.com/stock/SANM?tab=earnings)

Updated: 2026-07-27T03:05:02

Quarters analyzed: 8

## Cross-quarter narrative

Across eight earnings calls Sanmina moved from modest revenue and margin pressure in 2024 Q3 to robust top‑line growth and expanding margins by 2026 Q2. Early calls highlighted mix‑related gross‑margin compression, CPS program delays and slow inventory burn, prompting a raised Q4 outlook and a modest cash‑return program. By 2024 Q4 margins stabilized, inventory‑turn improvement was flagged as at‑risk and AI/JV opportunities were noted. FY25 guidance emphasized inventory reduction, a 6%+ operating‑margin target and a $300 M buyback, while demand accelerated in communications, cloud and defense. The ZT Systems acquisition, first signaled in 2025 Q3, progressed to closure in FY25 and began driving strong compute‑shipment demand in 2026 Q2. Margins improved steadily, with operating‑margin expanding from flat to 6.4% non‑GAAP, supported by cost discipline and AI‑driven pricing power. Supply‑chain material shortages and integration risks surfaced in 2026 Q2, adding new headwinds. Overall the company shifted from early‑stage execution risk to a growth phase anchored by AI/Cloud demand, successful acquisition integration, and disciplined capital allocation, while earlier inventory and mix concerns faded from the narrative.

## Latest CallCard · Q2

Sanmina posted $4.0 B Q2 revenue, 6.4% non‑GAAP margin and strong ZT Systems demand, while noting material shortages and ongoing integration milestones.

**Guidance:** maintained — Q3 revenue guidance $3.2‑3.5 B, margin 6.4‑6.9%, consistent with prior expectations; FY guidance unchanged.

**Tone:** mgmt 0.6 · Q&A pressure 0.4 · divergence 0.3

Management expressed being very pleased with performance, strong results and execution across both Core Sanmina and ZT Systems.

### Demand visibility

Strong demand in Communication Networks & Cloud AI, ZT Systems accelerated compute shipments

Revenue $4.0 B driven by ZT Systems shipments shifted earlier and growth across end markets, especially cloud and AI infrastructure.

### Margins / costs

Non‑GAAP operating margin 6.4% up 80 bps, cost discipline supported margin expansion

Mix drove slight gross profit dip; operating expenses down; disciplined working capital and operating leverage boosted margin.

### Capital allocation

Invest in growth, strategic acquisitions, balance sheet strength and share repurchases

Capex $57 M (below outlook due to timing), $600 M additional share repurchase authorization, focus on ROI‑based investments and leverage management.

### Milestones

- **Phase 1 integration** [delivered]: Immediate post‑transaction integration actions largely complete
- **Phase 2 customer acquisition** [on_track]: Securing customer business and shipping new accelerated compute business underway
- **Phase 3 growth expansion** [new]: Driving additional synergies and expanding addressable market started
- **ZT Systems FY revenue target** [on_track]: Aim for $5‑6 B annualized range, progress shown with $1.88 B quarter
- **Share repurchase authorization** [new]: Board authorized additional $600 M share repurchases
- **Q3 capital expenditures** [new]: Guidance expects $95 M capex to support growth
- **R&D investment for ZT transition** [at_risk]: Potential need to increase R&D above $10 M per quarter as business shifts
- **Inventory build‑up** [at_risk]: Inventory up 75% YoY driven by ZT acquisition, could pressure working capital

### Fears / risks

- **Supply chain**: Material shortages around memory and custom ASICs could affect shipments
- **Component availability**: Limited parts prevented shipping more units despite demand
- **R&D funding**: Transition of ZT to value‑add ODM may require higher R&D spend
- **Integration risk**: Integrating ZT Systems capital investments and processes still ongoing
- **Leverage increase**: Leverage expected to rise toward long‑term target as working capital grows
- **Macro uncertainty**: Outlook accounts for macroeconomic and geopolitical uncertainties
- **Margin pressure**: CPS gross margin down 230 bps due to depreciation and investments for new programs
- **Revenue guidance risk**: Guidance assumes material shortages will not materially impact revenue

### Key quotes

> “I'm very pleased with our performance for second quarter. We delivered strong results for the second quarter.”

> “Our revenue of $4.0 billion came in well above our outlook range, driven by strong execution and customer demand for the ZT systems business resulting in some accelerated compute shipments previously expected in the second half to shift”

> “The first phase is focused on executing the immediate post-transaction integration actions, which are largely complete at this point.”

## Quarter one-liners

- **2026 Q2:** Sanmina posted $4.0 B Q2 revenue, 6.4% non‑GAAP margin and strong ZT Systems demand, while noting material shortages and ongoing integration milestones.
- **2026 Q1:** —
- **2025 Q4:** Sanmina delivered strong FY2025 results (rev +7.4%, EPS +14.4%) and closed ZT Systems acquisition, guiding Q1 FY26 revenue $2.9-3.2B with 52% growth driven by cloud/AI.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management expressed strong satisfaction with FY2025 results, highlighted transformative 
- **2025 Q3:** Sanmina Q3 FY25 beat outlook with $2.04B revenue, $1.53 EPS; ZT Systems acquisition on track for year-end close; Q4 guidance maintains full-year growth target.
- **2025 Q2:** Sanmina delivered solid Q2 FY25 with revenue $1.98B (+8.1% YoY) and EPS $1.41, exceeding outlook; guided Q3 revenue $1.925-2.025B and full-year growth 6-8%; highlighted strong demand in Communications/Cloud (+20%) and Defense, while noting tariff uncertainty and expanding capacity for AI/data center
- **2025 Q1:** Sanmina Q1 FY25: revenue $2.01B, non-GAAP EPS $1.44, met/exceeded outlook; Q2 guide $1.9-2.0B revenue, EPS $1.30-1.40; FY25 growth year reiterated; $300M buyback authorized; inventory down 5%; targeting 6%+ op margin at $9B+ revenue.','tone': {'mgmt': 0.7, 'mgmt_rationale': 'Management expressed sat
- **2024 Q4:** Sanmina posted $2.02 B Q4 revenue, beating outlook, held margins, generated strong cash flow and returned nearly all free cash flow, while flagging inventory turn improvement and AI/JV growth opportunities for FY25.
- **2024 Q3:** Sanmina posted Q3 revenue of $1.84B in line with guidance, saw modest margin pressure from mix and CPS program delays, but raised Q4 outlook to $1.9‑2.0B and signaled a return to growth.

## Theme arcs

- **Revenue growth** (improving): From $1.84B in 2024 Q3 to $4.0B in 2026 Q2, driven by AI/Cloud demand and ZT Systems integration
- **Margin trajectory** (improving): Early mix pressure gave way to operating‑margin expansion to 6.4% non‑GAAP by 2026 Q2
- **AI/Cloud demand** (new): First mentioned as AI Cloud Infrastructure Projects in 2024 Q3, later became a primary growth engine
- **Inventory management** (resolved): Inventory‑absorption risk highlighted in 2024 Q4, not referenced in later calls
- **CPS program execution** (resolved): Delays in 2024 Q3 were resolved with CPS recovery delivered in 2024 Q4
- **Acquisition integration (ZT Systems)** (improving): Announced 2025 Q3, closed FY25, contributing strong demand and margin uplift by 2026 Q2
- **Supply‑chain constraints** (new): Material and component shortages surfaced in 2026 Q2
- **Capital allocation** (stable): Consistent share‑repurchase program and modest capex, with occasional at‑risk flags
- **Customer concentration** (resolved): Raised as a risk in 2024 Q3, absent from later commentary
- **Tax/Regulatory risk** (resolved): Pillar 2 tax concern noted in 2024 Q4, not mentioned thereafter

## Guidance path

2024 Q3:raised → 2024 Q4:maintained → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:maintained → 2025 Q4:vague → 2026 Q1:vague → 2026 Q2:maintained

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