Revenue and profitability
- QQ1 2026 revenue: $3.189 billion, up 59% YoY (four-quarter data shows normalization post-ZT acquisition). Gross profit: $242.362 million; gross margin: 7.60%. Non-GAAP gross margin expanded 30 bps YoY to 9.3%. Operating income: $73.598 million; non-GAAP operating margin: 6.0% (second quarter at 6% for two consecutive quarters).
- Net income: $49.286 million; net income margin: 1.55%; Non-GAAP diluted EPS: $2.38; GAAP EPS: $0.91; shares outstanding (diluted): ~55.5 million.
- EBITDA: $73.598 million; EBITDAR: 2.31% of revenue; ROIC (non-GAAP pre-tax): 32.1%.
Segment and end-market mix
- IMS (Integrated Manufacturing Solutions) revenue: $2.79 billion, up 72% YoY; gross margin: 8.7% (up 80 bps YoY).
- CPS (Components, Products & Services) revenue: $434 million, up 4.3% YoY; CPS non-GAAP gross margin: 12.9% (up 40 bps YoY).
- End-market mix: Communications networks, cloud and AI infrastructure accounted for ~62% of revenue; Industrial, energy, medical, defense/aerospace, automotive, and transportation accounted for ~38% (Q1 2026).
Cash flow and capital allocation
- CFO: $178.7 million; capex: $86.8 million; free cash flow: $91.9 million.
- Shares repurchased: 516,000 shares for ~$79 million; remaining authorization about $160 million.
- Cash and equivalents: ~$1.42 billion; revolver: no borrowings outstanding; net leverage: 0.8x.
- Balance sheet: Total assets ~$9.80 billion; total liabilities ~$2.52 billion; total debt ~$2.17 billion; net debt ~$755 million.
Guidance and outlook
- Q2 FY2026 guidance: Revenue $3.1–$3.4 billion (midpoint $3.25B, +62% YoY); non-GAAP operating margin 5.7–6.2%; non-GAAP diluted EPS $2.25–$2.55 (~$2.40 midpoint); capex around $95 million; depreciation ~$45 million. Tax rate guidance 21–23%.
- Management commentary: FY2026 is off to a great start; core Sanmina growth expected to be in the high single digits; ZT Systems margins in line with core Sanmina; integration of ZT is accretive to EPS; capacity expansion in the US, India, and Mexico to support growth targets.
Key takeaways
- The combination of core Sanmina and ZT Systems has materially expanded the total addressable market and provided a powerful growth engine for 2026 and beyond, with a clear path to higher margins through focused investments and mix optimization.