Sanmina Corporation Reports 102% Revenue Growth to $4.01 Billion in Latest Quarter

Sanmina Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $4.01 billion for the three months ended March 28, 2026, a 102% increase from $1.98 billion in the same period last year. For the six months, sales totaled $7.20 billion, up 80.5% from $3.99 billion. 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 existing programs.

The company's gross profit for the second quarter was $353.8 million, compared to $176.2 million a year earlier, while operating income increased to $157 million from $91.6 million. Net income attributable to common shareholders was $93.6 million, or $1.72 per share, up from $64.2 million, or $1.18 per share, in the prior year. The increase in profitability was supported by a gross margin of 8.8%, slightly down from 8.9% year-over-year, but with improvements in the Integrated Manufacturing Solutions (IMS) segment, which saw gross margins rise to 8.5% from 7.7%.

Sanmina's balance sheet reflects substantial changes, with total assets increasing to $9.67 billion as of March 28, 2026, compared to $5.86 billion at the end of the previous fiscal year. This growth was driven by a significant rise in cash and cash equivalents, which reached $1.58 billion, and a notable increase in inventories, which rose to $3.03 billion. The company also reported a substantial increase in long-term debt, which rose to $2.00 billion from $283 million, primarily due to financing related to the ZT Systems acquisition.

Operationally, Sanmina's customer base remains concentrated, with its ten largest customers accounting for approximately 72% of net sales. The company has also expanded its geographic footprint, with significant sales growth in the Americas, particularly in Mexico and the U.S. The acquisition of ZT Systems is expected to enhance Sanmina's capabilities in AI and hyperscale computing, further solidifying its market position.

Looking ahead, Sanmina anticipates continued growth driven by its strategic initiatives and the integration of ZT Systems. The company is focused on optimizing its product mix and expanding into higher-value markets, despite facing challenges such as supply chain constraints and macroeconomic pressures. Management remains optimistic about leveraging its enhanced capabilities to drive future revenue and profitability.