Sanmina Beats Q2 Estimates with $4.01B Revenue, Authorizes $600M Buyback
Sanmina reported fiscal Q2 revenue of $4.01 billion and non-GAAP EPS of $3.16, surpassing analyst estimates of $2.42 per share while delivering GAAP earnings of $1.70 per share. The company generated $342 million in free cash flow and authorized a $600 million share repurchase program.
1. Q2 Financial Results
Sanmina delivered Q2 revenue of $4.01 billion, a year-over-year increase driven by accelerated compute shipments. GAAP operating margin was 3.9% with GAAP EPS of $1.70, while non-GAAP operating margin reached 6.4% with EPS of $3.16, exceeding consensus estimates.
2. Cash Flow and Share Repurchase
Operational cash flow totaled $399 million and free cash flow was $342 million, bolstering the balance sheet to $1.58 billion in cash and equivalents. The board approved a new $600 million share repurchase program with no expiration date to enhance shareholder returns.
3. Third Quarter and Full-Year Outlook
For Q3, Sanmina forecasts revenue of $3.2–$3.5 billion and non-GAAP EPS of $2.55–$2.85. Full-year guidance anticipates revenue of $13.7–$14.3 billion and non-GAAP EPS of $10.75–$11.35, reflecting continued profitable growth and margin expansion.