Sanmina Corporation Reports 70% Revenue Growth to $3.46 Billion in Latest Quarter

Sanmina Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $3.46 billion for the three months ended June 27, 2026, a 70% increase from $2.04 billion in the same period last year. For the nine months ending June 27, 2026, net sales totaled $10.67 billion, up 77% from $6.03 billion in the prior year. The company attributed this growth primarily to its acquisition of ZT Systems, which has bolstered its presence in the cloud infrastructure market, alongside new program wins and ramp-ups in the communications networks sector.

The company's gross profit for the quarter was $363.3 million, translating to a gross margin of 10.5%, an increase from 8.9% in the previous year. Operating income also saw a substantial rise, reaching $221.2 million compared to $95.9 million a year earlier. Net income attributable to common shareholders was $117.1 million, or $2.17 per share, compared to $68.6 million, or $1.28 per share, in the same quarter last year. The increase in profitability was supported by improved operational efficiencies and a favorable product mix following the ZT Systems acquisition.

Sanmina's balance sheet reflects substantial changes, with total assets increasing to $9.74 billion as of June 27, 2026, up from $5.86 billion a year prior. This growth was driven by a significant rise in cash and cash equivalents, which reached $1.84 billion, and a notable increase in inventories, which rose to $3.15 billion. The company’s long-term debt also increased to $1.96 billion, reflecting the financing of the ZT Systems acquisition. The acquisition, completed on October 27, 2025, involved a total purchase consideration of $1.62 billion, including cash and stock, and is expected to enhance Sanmina's capabilities in AI and hyperscale computing.

Operationally, Sanmina reported a customer concentration risk, with its ten largest customers accounting for 67% of net sales. The company has also seen a shift in its geographic revenue distribution, with the Americas contributing $2.39 billion in the latest quarter, a significant increase from $1.21 billion a year ago. The company’s workforce has expanded, with employee headcount reflecting the integration of ZT Systems and the growth in operational capacity.

Looking ahead, Sanmina remains focused on leveraging its integrated manufacturing solutions to navigate macroeconomic challenges, including supply chain constraints and inflationary pressures. The company plans to continue diversifying its product offerings and enhancing operational efficiencies to capitalize on emerging market opportunities. Management expressed confidence in the company’s ability to meet its working capital needs and maintain liquidity, supported by strong cash flows from operations and available credit facilities.