Key Highlights

  • On November 9, 2026, Sanmina (NASDAQ:SANM) disclosed fiscal Q4 Revenue of USD 3.86 billion, an 84% increase on USD 2.10 billion, beating analyst projections near USD 3.48 billion.
  • Non-GAAP Earnings Per Share came in at USD 4.43 versus expectations of around USD 3.19, while GAAP EPS was USD 2.14.
  • Fiscal 2027 guidance projects revenue between USD 17.5 billion and USD 19.5 billion, with non-GAAP EPS of USD 15.50 to USD 17.50.
  • The stock finished the regular session up roughly 11% and then gained about 20% to 22% in extended trading.

Drivers Behind the Quarter

The rally mirrors Sanmina's shift into a leading builder of AI server racks. During fiscal 2026 it finished absorbing ZT Systems, a Data Center infrastructure maker bought from AMD, which broadened its footprint in cloud and AI systems. Full-year sales advanced 79%, reaching USD 14.53 billion, while non-GAAP operating profit rose 130% and non-GAAP EPS climbed to USD 13.28 from USD 6.04. The fourth-quarter non-GAAP Operating Margin reached 9.0%, versus 6.0% previously. Chairman and CEO Jure Sola termed the year transformative, with every end market growing and the traditional Sanmina operation expanding at double-digit rates. For the year, free Cash Flow reached USD 541 million on USD 944 million of operating cash generation. Sanmina now counts among the largest contract manufacturers for AI data centers, a status that would have seemed unlikely two years ago when it was mostly known for communications and industrial electronics.

Guidance Versus Margin Normalization

Fiscal 2027 guidance suggested Demand held steady despite the recent AI infrastructure sell-off. At the midpoint, revenue would climb roughly 27% and non-GAAP EPS about 24%, the company indicated. For the first quarter, management points to sales between USD 3.8 billion and USD 4.1 billion, with non-GAAP EPS between USD 3.50 and USD 3.85. That sits below the fourth-quarter EPS of USD 4.43, and the projected 7.0% to 7.5% margin trails the 9.0% just posted, so investors appear willing to accept some normalization for strong volume. Sanmina repurchased USD 154 million of shares in the quarter and USD 393 million over the year, ending with USD 1.68 billion in cash against roughly USD 1.92 billion of long-term debt.

Exposure Points for Shareholders

Rack-scale assembly earns thinner margins than chip design, and growth depends on a handful of large hyperscale and AI buyers whose budgets face political and financing scrutiny. The stock dropped 17.5% the session after the prior quarter's results, illustrating its sensitivity to guidance. Interest expense surged to USD 122 million during fiscal 2026, up from USD 20 million, after Acquisition borrowing, and contingent consideration linked to the ZT transaction added USD 78 million of charges this quarter. Working Capital is demanding, with inventory around USD 3.6 billion. Watchers will focus on margins as programs scale, customer concentration and whether AI spending holds as data center rules evolve. Execution risk remains significant when programs ramp this quickly, and it grows harder to manage when several ramp at once.

Where Things Stand

Sanmina beat on revenue and earnings in its fiscal fourth quarter, powered by AI rack demand after the ZT Systems combination, and fiscal 2027 guidance pointed to roughly 27% revenue expansion. Shares rose about 20% in extended trading atop an 11% regular-session advance. The lower first-quarter margin outlook means execution on large AI programs will determine whether the gain endures. Broader improvement in AI hardware sentiment on November 9 contributed.