Sanmina stock surges after AI server boom fuels blowout quarter and fiscal 2027 outlook tops expectations. The electronics manufacturer reported stronger-than-expected quarterly earnings and forecast significant growth in cloud and AI infrastructure revenue. Published 11/11/26 AT 3:54 AM AEDT Shares of Sanmina Corp. jumped more than 10% on Tuesday after the electronics manufacturer reported fiscal fourth-quarter results well above Wall Street estimates and gave a fiscal 2027 forecast that beat expectations, driven by demand for AI server systems. The stock rose $15.95 to $165.59 in morning trading on the Nasdaq, extending an 11% gain in Monday's regular session. Volume was well above average, and the company is valued at about $8.8 billion. The shares had traded as high as $180 in after-hours trading Monday before giving back part of the gain. Sanmina, based in San Jose, California, said revenue for the quarter ended Oct. 3 rose 84% to $3.86 billion, from $2.10 billion a year earlier. Analysts had expected $3.48 billion, and the result beat the company's own forecast of $3.3 billion to $3.6 billion. Adjusted earnings were $4.43 per share, beating the $3.19 consensus estimate by about 39%. GAAP earnings were $2.14 per share. "This was a transformative year for Sanmina as we delivered strong broad-based growth across all of our end markets, integrated the ZT Systems business, strengthening our position in the Cloud and AI Infrastructure end market, and grew our core Sanmina business by double digits year-over-year, maintaining a well-diversified portfolio," said Jure Sola, chairman and chief executive. On the call with analysts, Sola said: "We are executing to our business plan. We exceeded all our outlook, both the fourth quarter and fiscal year 2026." Fiscal 2026 was the first full year to include ZT Systems, the server rack manufacturing business Sanmina bought from Advanced Micro Devices in October 2025. ZT now builds complete rack-scale AI systems for cloud customers, and it contributed $884 million of fourth-quarter revenue. Sanmina's core business grew 41.9% to $2.97 billion. Revenue from cloud and AI infrastructure rose 198% to $9.25 billion in fiscal 2026, about 64% of total sales. Full-year revenue rose 79% to $14.53 billion, and adjusted earnings more than doubled to $13.28 a share from $6.04. Sanmina's outlook was well above expectations. The company forecast fiscal first-quarter revenue of $3.8 billion to $4.1 billion and adjusted earnings of $3.50 to $3.85 per share. The midpoint of the earnings range is roughly 25% above analysts' consensus of $2.95. For fiscal 2027, Sanmina projected revenue of $17.5 billion to $19.5 billion and adjusted earnings of $15.50 to $17.50 per share. At the midpoint, that implies about 27% revenue growth and 24% earnings growth. The company expects its cloud and AI systems business, which includes ZT, to generate $7.5 billion to $9 billion, up from $5.35 billion in fiscal 2026, with growth speeding up in the second half of the year. When it announced the ZT deal in May 2025, Sanmina said it expected revenue to double from about $8 billion to about $16 billion within three years. Its new guidance puts it ahead of that target. The company generated $944 million in operating cash flow in fiscal 2026 and $541 million in free cash flow, and it continued to buy back shares. The rally comes after a steep decline. Before the report, the stock had fallen sharply from its 52-week high of $288.68 amid wider worries about AI spending and supplier margins. That decline made the strong results land harder with investors. Not every analyst turned more bullish. JPMorgan cut its price target to $230 from $270 and kept a Neutral rating, a change that analysts described as a recalibration of its model rather than a new endorsement. Sanmina, founded in Silicon Valley in 1980, also makes equipment for communications networks, industrial and energy customers, medical devices, defense and aerospace, and the auto industry. Executives said demand was strong across those markets too, not just AI. MEET IBT NEWS FROM BELOW CHANNELS

Sanmina Q4 earnings call highlights. Sanmina (NASDAQ:SANM) forecast fiscal 2027 revenue of $17.5 billion to $19.5 billion as it begins shipping AMD's Helios accelerated-compute systems and prepares to ramp additional cloud and artificial intelligence programs. The outlook followed a fiscal fourth quarter in which revenue rose 84% from a year earlier to $3.86 billion. The company's results exceeded its guidance, although a $30 million tariff recovery provided a one-time boost to profitability. For the fiscal year ended Oct. 3, revenue increased 79% to $14.53 billion, while adjusted diluted earnings per share rose 120% to $13.28. Adjusted operating margin expanded to 7.4% from 5.7% a year earlier. AI Systems ramp drives outlook. Sanmina expects fiscal 2027 adjusted earnings of $15.50 to $17.50 per diluted share and an adjusted operating margin of 7% to 7.5%. At the midpoint, the revenue forecast implies growth of 27.4% from fiscal 2026. The company expects $7.5 billion to $9 billion in revenue from Cloud & AI Systems, a category that includes ZT Systems, additional platforms and related products and services. That business is a subset of the broader Cloud & AI Infrastructure end market. Chief Financial Officer Jon Faust said revenue from the AI systems business is expected to be weighted toward the second half of the fiscal year. Much of the annual forecast relates to ZT Systems, graphics processing units and Helios, he said. Sanmina has begun shipping Helios products in small quantities, Faust said, and has won business from hyperscale, frontier AI lab and original equipment manufacturer customers. The company also won programs on a second platform separate from AMD that are included in its forecast. Discussions for a third platform are at an early stage and are not included in the guidance. Faust said the opportunity could provide upside later in the year if a deal is completed and the timing of revenue allows. For the fiscal first quarter, Sanmina forecast revenue of $3.8 billion to $4.1 billion, including $1.3 billion to $1.5 billion from Cloud & AI Systems. It projected adjusted earnings of $3.50 to $3.85 per share. Fourth-Quarter results and tariff recovery. Fourth-quarter adjusted earnings were $4.43 per diluted share, up 166% from a year earlier. Adjusted operating margin was 9%, an improvement of 300 basis points. Faust said approximately $30 million in tariff recoveries, primarily associated with legacy ZT Systems products, was not included in the company's outlook. The recovery contributed about 75 basis points to adjusted operating margin and $0.42 to adjusted earnings per share. He described it as a one-time item. Core Sanmina revenue rose 42% to $2.97 billion in the quarter, while ZT Systems contributed $884 million. Faust said the core business exceeded its outlook, with growth across all end markets, while ZT Systems revenue was in line with expectations. Chairman and Chief Executive Officer Jure Sola said fourth-quarter Cloud & AI Infrastructure revenue rose 179% to $2.37 billion. Revenue from the combined industrial, energy, medical, defense, aerospace and automotive markets increased 19% to $1.49 billion. Investment and supply chain risks. Sanmina plans fiscal 2027 capital expenditures of approximately $450 million, up from $404 million in fiscal 2026. Investments have included AI rack fabrication, advanced circuit boards, transformer manufacturing, liquid cooling and testing capacity. The company generated $944 million in operating cash flow and $541 million in free cash flow during fiscal 2026. It ended the fourth quarter with $1.68 billion in cash and cash equivalents and more than $3.83 billion in total available liquidity. Faust said Sanmina expects working capital to increase as the business grows. He attributed the relatively wide full-year guidance range partly to the number and complexity of new programs. Sola added that supply shortages and uncertainty are also factors. While management said it sees demand extending into fiscal 2028, it did not provide a formal forecast for that year. Faust said execution and supply chain coordination with partners and customers would be important to capturing that demand. About Sanmina (NASDAQ:SANM). Sanmina Corporation is a provider of integrated manufacturing solutions for companies that develop complex electronic, optical, and electromechanical products. Its services span product design and engineering, supply-chain management, manufacturing, and logistics, as well as repair and other aftermarket support. The company serves customers in markets that include communications networks, cloud and data-center infrastructure, medical and life sciences, automotive, industrial equipment, and aerospace and defense.