Sanmina Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

Sanmina Corporation SANM reported strong fourth-quarter fiscal 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate.

This California-based global electronics manufacturing services provider reported revenue growth year over year, owing to solid momentum across multiple end markets. Strong growth in free cash flow is a positive.

Net Income

Net income on a GAAP basis in the quarter was $48.1 million or 88 cents per share compared with $61.4 million or $1.09 per share in the prior-year quarter. Despite top-line growth, higher operating expenses and higher income taxes impacted the bottom line.

Non-GAAP net income in the reported quarter was $91.5 million or $1.67 per share compared with $80.3 million or $1.43 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.57.

In 2025, the company reported a GAAP net income of $245.9 million or $4.46 per share compared to $222.5 million or $3.91 per share in 2024. Non-GAAP net income was $333.2 million or $6.04 per share compared to $300.9 million or $5.28 per share in 2024.

Revenues

Net sales during the quarter increased to $2.09 billion from $2.01 billion reported in the year-ago quarter, primarily driven by growth across multiple end markets. The top line beat the consensus estimate by $46 million.

For 2025, revenues increased to $8.13 billion from $7.56 billion in 2024
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In the fiscal fourth quarter, Integrated Manufacturing Solutions generated $1.68 billion in revenues, up 3.3% year over year. The segment contributed 80.2% to revenues. Solid sales growth was primarily driven by the communications networks, cloud and AI infrastructure end markets.

Components, Products and Services revenues increased to $448 million, up 7.3% year over year, backed by growth in several end markets.

End-market-wise, Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.247 billion in revenues, down from $1.253 billion. The company generated $849 million from Communications Networks and Cloud Infrastructure, up from $765 million a year ago.

Other Details

Non-GAAP gross profit was $196.4 million compared with $175.5 million in the year-ago quarter. The improvement is driven by a favorable mix and improved operational efficiency. Non-GAAP operating income totaled $126.4 million compared with $107.3 million in the year-ago period. Non-GAAP operating margin was 6%, marginally up from 5.6% in the prior-year quarter.

Cash Flow & Liquidity

In the fourth quarter of fiscal 2025, Sanmina generated $199.1 million of net cash from operating activities compared with $51.9 million in the previous year’s quarter. In 2025, the company generated $620.7 million in cash compared to $340.2 million in 2024. As of Sept. 27, 2025, the company had $926.3 million in cash and cash equivalents and $282.3 million in long-term debt. In 2025, it repurchased approximately 1.44 million shares for roughly $113.7 million.

Outlook

For the first quarter of fiscal 2026, revenues are expected to be in the range of $2.05-$2.15 billion. Management estimates non-GAAP earnings per share in the band of $1.95-$2.25. Non-GAAP operating margin is expected in the band of 5.6-6.1%.

Zacks Rank

Sanmina currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.

Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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