Sanmina Corporation Reports 59% Revenue Growth to $3.19 Billion in Latest Quarter

Sanmina Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $3.19 billion for the three months ended December 27, 2025, a 59% increase from $2.01 billion in the same period last year. The company's gross profit also rose to $242.4 million, compared to $167.9 million in the prior year, although the gross margin slightly decreased from 8.4% to 7.6%. The increase in revenue was primarily driven by strong performance in the communications networks and cloud infrastructure sectors, bolstered by the recent acquisition of ZT Systems, which contributed approximately $1.1 billion in revenue since its integration.

In terms of profitability, Sanmina's net income attributable to common shareholders was $49.3 million, down from $65 million a year earlier, resulting in diluted earnings per share of $0.89 compared to $1.16 in the previous year. The decline in net income was attributed to higher operating expenses, which included $43.4 million in acquisition and integration costs related to the ZT Systems acquisition, as well as increased interest expenses due to new debt incurred for the acquisition.

The company’s balance sheet showed substantial changes, with total assets increasing to $9.8 billion from $5.9 billion at the end of the previous fiscal period. Cash and cash equivalents rose to $1.42 billion, up from $926 million, while accounts receivable and inventories also saw significant increases, reflecting the company's growth and operational scale. Sanmina's total liabilities increased to $7.14 billion, primarily due to the new debt taken on for the acquisition, which included $2.17 billion in long-term debt.

Operationally, Sanmina's customer base remains concentrated, with its ten largest customers accounting for 66% of net sales, up from 50% in the previous year. The company reported a notable increase in customer advances and deferred revenue, indicating strong demand and customer commitments. The acquisition of ZT Systems is expected to enhance Sanmina's capabilities in AI and hyperscale computing, positioning the company for further growth in these high-demand sectors.

Looking ahead, Sanmina anticipates continued revenue growth driven by its strategic focus on high-technology products and expanding into mission-critical markets. The company is committed to optimizing its operations and adapting to market conditions, including potential challenges from macroeconomic factors such as inflation and supply chain constraints. Sanmina's management believes that its existing cash resources and liquidity will be sufficient to meet operational needs over the next twelve months, despite the uncertainties in the broader economic environment.