Board of Directors Authorize $600 Million Share Repurchase Program
SAN JOSE, Calif. — Sanmina Corporation (“Sanmina” or the “Company”) (NASDAQ: SANM), a leading integrated manufacturing solutions company, reported financial results for the second quarter ended March 28, 2026 and outlook for its third fiscal quarter ending June 27, 2026.
Second Quarter Fiscal 2026 Financial Highlights
- Revenue: $4.01 billion
- GAAP operating margin: 3.9%
- GAAP diluted EPS: $1.70
- Non-GAAP(1) operating margin: 6.4%
- Non-GAAP(1) diluted EPS: $3.16
Additional Highlights
- Cash flow from operations: $399 million
- Free cash flow(2): $342 million
- Share repurchases: 1.1 million shares for $160 million
- Ending cash and cash equivalents: $1.58 billion
|
(1) |
See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release. |
|
(2) |
Free cash flow is defined as net cash provided by operating activity adjusted for net purchases of property and equipment. See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release. |
“We delivered great results for the second quarter. Revenue, non-GAAP operating margin and non-GAAP diluted EPS all exceeded our outlook,” stated Jure Sola, Chairman and CEO of Sanmina Corporation. “ZT Systems revenue significantly exceeded our expectations, driven by strong execution and customer demand, resulting in new accelerated compute shipments previously expected in the second half of the year to shift into the second quarter. In addition, core Sanmina grew 7.3% year-over-year, in line with expectations.”
“Based on our results for the first half of the year and our outlook for the third quarter, we expect to deliver revenue in the range of $13.7 to $14.3 billion for fiscal 2026, and we see strong growth potential ahead. We remain focused on profitable growth, margin expansion, cash generation and shareholder value creation,” Sola concluded.
Third Quarter Fiscal 2026 Outlook
- Revenue between $3.2 billion to $3.5 billion
- Non-GAAP operating margin between 6.4% to 6.9%*
- Non-GAAP diluted earnings per share between $2.55 to $2.85*
Fiscal Year 2026 Outlook
- Revenue between $13.7 billion to $14.3 billion
- Non-GAAP operating margin between 6.3% to 6.6%*
- Non-GAAP diluted earnings per share between $10.75 to $11.35*
*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort.
Board of Directors Authorize Share Repurchase Program
Sanmina’s Board of Directors has authorized the repurchase of up to $600 million of Sanmina’s common stock. The stock repurchase program has no expiration date. The Company exhausted its prior repurchase program as of March 28, 2026.
“Our Board’s new share repurchase authorization reflects our strong balance sheet and free cash flow generation. This gives us the capacity to continue returning capital to shareholders while investing in the business and maintaining our leverage within our target range, consistent with our capital allocation framework,” stated Jon Faust, Executive Vice President and Chief Financial Officer of Sanmina.
Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the second quarter and outlook for the third quarter of fiscal 2026 on Monday, April 27, 2026 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference call will also be webcast live over the Internet. You can log on to the live webcast at Q2’26 Earnings. Additional information in the form of a slide presentation is available on Sanmina’s website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 18902#.
