Sanmina reported first quarter fiscal 2026 revenue of $3.19 billion, representing a 59% year-over-year increase from $2.01 billion in Q1 FY25. Non-GAAP diluted earnings per share reached $2.38, surpassing the consensus estimate of $2.15 and up from $1.44 a year ago. GAAP diluted EPS was $0.89. The non-GAAP operating margin held at 6.0%, matching the high end of management’s outlook and improving from 5.6% in the prior-year period.

Non-GAAP operating income rose to $192 million, up 70% from $113 million in Q1 FY25. Key drivers included the amortization of a fair-value step-up on acquired inventory from the ZT Systems acquisition and disciplined control of selling, general and administrative expenses, which grew less than revenues. GAAP operating margin of 2.3% reflects acquisition and integration charges of $43 million and stock-based compensation of $24 million.

Operating cash flow improved to $179 million, compared with $106 million a year earlier, supporting free cash flow of $92 million. Sanmina deployed $79 million to repurchase 516,000 shares in the quarter while ending December with $1.42 billion in cash and equivalents—an increase of nearly $490 million since the prior quarter. Accounts receivable and inventory levels rose in line with revenue growth but remained within target turns ratios.

For the second quarter ending March 28, 2026, management projects revenue between $3.10 billion and $3.40 billion and non-GAAP EPS of $2.25 to $2.55. The Communications Networks and Cloud & AI Infrastructure end-markets continue to benefit from robust demand for AI-driven hardware. Integration of ZT Systems is proceeding on schedule, with expected contributions to gross margin and cross-selling opportunities in medical, defense and industrial segments.