Description

Sanmina Corporation’s $5.7 Billion ZT Systems Bet—Will This Acquisition Supercharge Revenues?

Sanmina Corporation reported results for the first quarter of fiscal year 2026 demonstrating solid execution and financial performance. The company posted revenue of $3.19 billion, reflecting a 59% increase year-over-year, driven largely by growth in the communications networks and cloud and AI infrastructure end markets, as well as the recent addition of the ZT Systems business. Non-GAAP operating margin reached 6.0%, up 40 basis points from the prior year, while non-GAAP diluted earnings per share rose 66.1% to $2.38, surpassing guidance. Operating cash flow was strong at $179 million, enabling free cash flow of $92 million after capital expenditures of $87 million. Segment performance showed the Integrated Manufacturing Services (IMS) segment delivering $2.79 billion in revenue with an 8.7% gross margin, benefitting from operational efficiencies and favorable mix including ZT Systems. The Contract Products Solutions (CPS) segment revenue grew modestly by 4.3% to $434 million, with gross margin at 12.