Sanmina Corp

Sanmina delivered a strong fiscal first quarter of 2026, beating Wall Street expectations on both the top and bottom lines as its transformative acquisition of ZT Systems reshaped the company's scale almost overnight. Non-GAAP diluted EPS came in at $2.38, ahead of the $2.15 consensus estimate by 10.96%, while revenue of $3.19 billion topped expectations by 3.26% and surged 59.0% year-over-year, with the newly consolidated ZT Systems operations accounting for much of that lift. The deal, which closed during the quarter for $1.36 billion net of cash acquired and financed through $2.20 billion in new long-term debt, brought meaningful near-term headwinds including $49.00 million in inventory fair value step-up charges and $43.36 million in acquisition and integration costs, pushing GAAP operating margin down to 2.3% from 4.4% a year ago. On a non-GAAP basis, however, operating margin expanded to 6.0%, reflecting strong demand across Communications Networks and Cloud & AI Infrastructure driven by AI hardware spending. Argus raised its price target on the stock to $200 following the results. Looking ahead, Sanmina guided fiscal Q2 revenue of $3.10 billion to $3.40 billion and non-GAAP diluted EPS of $2.25 to $2.55, signaling continued integration momentum.