Sanmina delivered first quarter fiscal 2026 revenue of $3.19 billion, up 59% year-over-year, driven by the integration of ZT Systems and strength in cloud and AI infrastructure end-markets. Non-GAAP operating margin reached 6.0%, at the high end of guidance, while non-GAAP diluted EPS of $2.38 exceeded the company’s outlook. Cash flow from operations totaled $179 million and free cash flow was $92 million, enabling Sanmina to repurchase 516 thousand shares for $79 million. Inventory step-up and acquisition integration charges were absorbed without diluting core profitability, underscoring successful post-acquisition execution.

Despite beating consensus revenue and EPS estimates, Sanmina’s projection of second quarter net sales between $3.1 billion and $3.4 billion fell short of analysts’ average forecast of $3.52 billion. Management cited slower ramp in certain aerospace and industrial programs as well as cautious order visibility in legacy telecom. The guidance gap prompted a nearly 22% share price drop in a single trading session, reflecting investors’ low tolerance for any deviation from high growth expectations in AI-enabled hardware suppliers.

Sanmina’s expanding footprint in AI server chassis, high-density backplanes and advanced thermal management positions the company to capture accelerating demand for data-center hardware. The Communications Networks and Cloud & AI Infrastructure segments represented over 45% of Q1 revenue, with backlog up 30% sequentially. Management reaffirmed its commitment to deepen partnerships with leading hyperscale customers and invest in capacity expansion, projecting that ongoing AI chipset rollouts and next-generation interconnects will drive mid-teens top-line growth over the next 12 months.