Sanmina (NASDAQ:SANM) Shares Gap Up on Earnings Beat

Key Points

• Sanmina beat expectations with Q2 non‑GAAP EPS of $3.16 versus a $2.42 consensus and revenue of $4.01B (up 102% YoY), driving the stock to roughly $214 intraday after a gap higher at the open.
• Management raised guidance (Q3 EPS 2.55–2.85, FY2026 EPS 10.75–11.35) and approved a $600M share‑repurchase program, supported by strong operating cash flow and a healthy cash balance.
• Investor reaction is mixed—analysts’ consensus is a "Hold" with a ~$150 target—and recent insider selling plus differences between GAAP and non‑GAAP metrics could temper the rally.

Sanmina Corporation (NASDAQ:SANM - Get Free Report)'s stock price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $188.08, but opened at $204.98. Sanmina shares last traded at $214.3610, with a volume of 906,641 shares changing hands.

The electronics maker reported $3.16 earnings per share for the quarter, beating analysts' consensus estimates of $2.42 by $0.74. Sanmina had a net margin of 2.47% and a return on equity of 13.06%. The company had revenue of $4.01 billion for the quarter, compared to analysts' expectations of $3.30 billion. During the same quarter in the previous year, the company earned $1.16 EPS. Sanmina's revenue for the quarter was up 102.3% on a year-over-year basis. Sanmina has set its Q3 2026 guidance at 2.550-2.850 EPS and its FY 2026 guidance at 10.750-11.350 EPS.

Key Headlines Impacting Sanmina

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported stronger-than-expected Q2 results: non‑GAAP EPS $3.16 vs. $2.42 consensus and revenue $4.01B (up 102% YoY), showing large demand recovery and scale. Zacks: Sanmina Tops Q2 Estimates
• Positive Sentiment: Management raised guidance: FY2026 EPS view 10.75–11.35 (vs. ~9.75 consensus) and Q3 EPS 2.55–2.85 (above street). Upward guidance signals sustained margin and revenue strength. PR Newswire: Q2 Results & Guidance
• Positive Sentiment: Board approved a $600 million share‑repurchase program and the company reported strong cash (operating cash flow and ~$1.58B cash balance), giving flexibility to return capital and support EPS. PR Newswire: Buyback & Cash
• Neutral Sentiment: Full earnings/management commentary is available in call transcripts for investors who want detail on product mix, supply chain and customer pacing. Seeking Alpha: Q2 Call Transcript
• Negative Sentiment: A Seeking Alpha write‑up noted a rating downgrade even as it acknowledges growth potential — this can pressure sentiment and trigger profit‑taking after a big rally. Seeking Alpha: Rating Downgrade
• Negative Sentiment: Some data outlets flagged GAAP diluted EPS (reported $1.70) that can differ from non‑GAAP metrics and came in below certain third‑party estimates; Quiver also highlights recent insider selling and a rise in reported liabilities — both can temper enthusiasm. QuiverQuant: Mixed GAAP Metrics & Insider Activity

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Weiss Ratings downgraded shares of Sanmina from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, April 1st. JPMorgan Chase & Co. assumed coverage on shares of Sanmina in a report on Monday, March 30th. They issued a "neutral" rating and a $145.00 price target on the stock. Argus lifted their price target on shares of Sanmina to $200.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. Susquehanna assumed coverage on shares of Sanmina in a report on Wednesday, April 1st. They issued a "neutral" rating and a $135.00 price target on the stock. Finally, Zacks Research downgraded shares of Sanmina from a "strong-buy" rating to a "hold" rating in a report on Monday, March 30th. One analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Sanmina presently has an average rating of "Hold" and a consensus target price of $150.00.

Insider Transactions at Sanmina

In other news, Director David V. Hedley III sold 1,024 shares of the business's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $162.31, for a total value of $166,205.44. Following the sale, the director directly owned 6,340 shares in the company, valued at $1,029,045.40. The trade was a 13.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Alan Mcwilliams Reid sold 3,500 shares of the business's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $148.45, for a total transaction of $519,575.00. Following the completion of the sale, the executive vice president owned 33,981 shares in the company, valued at approximately $5,044,479.45. This trade represents a 9.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 14,599 shares of company stock worth $2,290,728 in the last three months. Insiders own 3.10% of the company's stock.

Institutional Trading of Sanmina

Large investors have recently made changes to their positions in the business. Optiver Holding B.V. increased its holdings in shares of Sanmina by 36.6% in the 3rd quarter. Optiver Holding B.V. now owns 220 shares of the electronics maker's stock worth $25,000 after buying an additional 59 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Sanmina in the 3rd quarter worth about $26,000. Root Financial Partners LLC bought a new stake in shares of Sanmina in the 3rd quarter worth about $34,000. Employees Retirement System of Texas bought a new position in Sanmina during the 4th quarter valued at about $39,000. Finally, Salomon & Ludwin LLC bought a new position in Sanmina during the 3rd quarter valued at about $41,000. 92.71% of the stock is currently owned by institutional investors.

Sanmina Price Performance

The company has a market capitalization of $11.39 billion, a P/E ratio of 50.78, a P/E/G ratio of 0.85 and a beta of 1.05. The firm's fifty day moving average is $143.93 and its 200 day moving average is $149.94. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.04 and a current ratio of 1.70.

Sanmina Company Profile

Sanmina Corporation is a leading global electronics manufacturing services (EMS) provider specializing in the design, production and end-to-end supply chain solutions for complex electronic products. Founded in 1980, the company has built a reputation for delivering high-reliability manufacturing across a wide range of industries, including communications, computing, aerospace and defense, medical, automotive and industrial sectors.

Sanmina's core offerings encompass product design and engineering support, precision PCB fabrication and assembly, system integration, testing, and final system deployment.

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