SANM's Robust Portfolio Fueling Revenues: Will the Trend Persist?

Sanmina Corporation SANM is benefiting from solid revenue growth backed by its comprehensive portfolio and solid demand in multiple segments. Net sales during the quarter increased to $2.09 billion from $2.01 billion reported in the year-ago quarter, beating the Zacks Consensus Estimate by $46 million.

Sanmina’s comprehensive portfolio offers product designing, manufacturing, assembling, testing and aftermarket support. Such an end-to-end approach enables customers to rely on a single partner throughout the product lifecycle management. This strategy, combined with the dynamic manufacturing approach, allows Sanmina to serve its customers despite growing geopolitical volatility and tariff-related uncertainties. This makes the company a preferred choice for organizations amid growing supply-chain disruptions worldwide.

Sanmina has a strong presence across multiple end markets, including medical, defense, aerospace, communication, cloud infrastructure, automotive, industrial and energy. Such a diverse market presence strengthens its business resilience by mitigating risks associated with economic downturns in any single industry.

Moreover, the company prioritizes expanding into high-growth industries backed by its strong global network, deep expertise and unique value proposition in advanced electronics manufacturing. Per the Zacks Consensus Estimate, Sanmina is projected to report $3.1 billion in revenues, indicating growth of 54.51% year over year.

How Are Competitors Faring?

The company faces competition from Jabil, Inc. JBL and Celestica Inc. CLS in the electronic manufacturing services industry. Jabil reported revenues of $8.3 billion in the recent quarter, up from $6.96 billion a year ago. Healthy demand in the healthcare & packaging, Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals is driving growth. Jabil’s focus on end-market and product diversification is a key catalyst.

Celestica reported quarterly revenues of $3.19 billion, up 27.8% year over year. Solid growth in the hardware platform solutions portfolio, backed by hyperscale customer demand for networking products, including 400G switches and 800G switches, is driving growth. Growing AI-driven data center investments across industries boast a solid growth potential for Celestica.

SANM's Price Performance, Valuation & Estimates

Sanmina’s shares have gained 108.1% compared with the Electronics - Manufacturing Services industry’s growth of 98.3%.

From a valuation standpoint, the company’s shares currently trade at 15.81 times forward 12-month earnings, lower than the industry.

Earnings estimates for Sanmina for 2025 and 2026 have increased over the past 60 days.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research