Q3 2026 Sanmina Corp Earnings Call Transcript
Key Points
- Sanmina Corp (SANM) reported strong financial performance with revenue of $3.46 billion, exceeding their outlook range.
- The company achieved a non-GAAP operating margin of 8% and a non-GAAP diluted EPS of $3.31, both surpassing expectations.
- Core Sanmina business revenue grew by 17% year-over-year, with broad-based strength across all end markets.
- Sanmina Corp (SANM) has a strong balance sheet with cash and cash equivalents of $1.84 billion and no outstanding borrowings on their $1.5 billion revolver.
- The company is making strategic investments in capabilities and capacity to support future growth, particularly in AI and cloud infrastructure.
- ZT Systems revenue was at the midpoint of its outlook range, indicating potential challenges in meeting higher expectations.
- Inventory levels increased significantly, up 87.2% year-over-year, which could indicate potential inefficiencies or overstocking.
- Non-GAAP gross margin for the DPS segment decreased by 190 basis points year-over-year, primarily due to depreciation and other expenses.
- The company expects working capital to grow, which could impact cash flow from operations negatively.
- ZT Systems' revenue guidance for the fourth quarter is lower than previously implied, driven by timing issues with legacy programs.
Good afternoon, ladies and gentlemen, and welcome to Sanmina's third-quarter fiscal 2026 earnings conference call. (Operator Instructions) This call is being recorded on Monday, July 27, 2026.
I would now like to turn the conference over to Paige Melching. Please go ahead.
Thank you, Mark. Good afternoon, ladies and gentlemen, and welcome to Sanmina's third-quarter fiscal 2026 earnings call. A copy of our press release and slides for today's discussion are available on our website at sanmina.com in the Investor Relations section.
Joining me on today's call is Jure Sola, Chairman and Chief Executive Officer.
Good afternoon.
And Jon Faust, Executive Vice President and Chief Financial Officer.
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