Sanmina Corporation SANM is set to report third-quarter fiscal 2026 results on July 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 30.58%. It pulled off a trailing four-quarter earnings surprise of 13.85%, on average.
The company is expected to witness year-over-year revenue growth, driven by healthy demand across cloud infrastructure, industrial, medical and communications markets, supported by new product ramps. However, pricing pressure, an unfavorable product mix, and macroeconomic uncertainties are likely to have weighed on the company's bottom line.
Factors at Play
During the third quarter of fiscal 2026, Sanmina is expected to have benefited from continued strength in Cloud & AI Infrastructure, supported by contributions from ZT Systems. Solid investments in AI-enabled data centers, networking equipment and high-performance computing are expected to have boosted customer orders for the company's advanced manufacturing and integrated design services, supporting higher revenue generation.
Sanmina's continued execution of new customer programs and production ramps is likely to have further driven revenue growth in the quarter under review. Higher manufacturing activity for existing and newly launched products is expected to have increased shipments across key end markets. In addition, the company's ability to efficiently scale production and meet customer delivery schedules is likely to have supported greater order fulfillment and increased revenues during the quarter.
Despite healthy demand trends across several end markets, Sanmina is likely to have faced softness in select customer programs during the June quarter. Persistent pricing pressure, an unfavorable product mix, and macroeconomic uncertainties, including tariff-related costs and geopolitical tensions, are likely to have limited the company's ability to fully capitalize on improving demand. Sanmina also faces periodic component constraints that can shift revenues and profit timing within specific programs. In fiscal second-quarter 2026, management observed that component shortages affected the timing of revenue and profitability for one CPS product business and expects this to be resolved in the second half of fiscal 2026.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $3.43 billion, indicating an improvement from the year-ago quarter’s reported figure of $2.04 billion. The consensus estimate for adjusted earnings per share is pegged at $2.78, implying growth from $1.53 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sanmina for the third quarter of fiscal 2026. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sanmina carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanmina Corporation Price and EPS Surprise
Sanmina Corporation price-eps-surprise | Sanmina Corporation Quote
Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Silicon Motion Technology Corporation SIMO has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29.
The Earnings ESP for Celestica Inc. CLS is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.
The Earnings ESP for Monolithic Power Systems, Inc. MPWR is +1.00%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.
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Sanmina Corporation (SANM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).