Sanmina (SANM) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy SANM?
Source: NASDAQ.COM
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Analyst Views on SANM
Wall Street analysts forecast SANM stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 141.290
Low
180.00
Averages
180.00
High
180.00
Current: 141.290
Low
180.00
Averages
180.00
High
180.00
About SANM
Sanmina Corporation is a global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. It provides end-to-end manufacturing solutions, delivering support to original equipment manufacturers in the industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure markets. Its operations are managed in two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS segment consists of printed circuit board assembly and test, high-level assembly and test and direct-order-fulfillment. CPS includes advanced printed circuit boards, backplanes and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts and plastic injected molded parts. Its products include optical, radio frequency and microelectronic design and manufacturing services, multi-chip package memory solutions, high-performance storage platforms and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sanmina's Earnings Beat Estimates but Stock Plummets
- Strong Earnings: Sanmina reported nearly $3.19 billion in net sales for Q1 FY2026, a significant increase from just over $2 billion last year, highlighting the company's robust growth potential in the AI market.
- Profit Growth: The company’s non-GAAP net income exceeded $132 million ($2.38 per share), surpassing analyst expectations of $2.14 per share, indicating improved profitability.
- Negative Market Reaction: Despite beating estimates, investors reacted negatively to the company's weak guidance, resulting in a nearly 22% drop in stock price, reflecting a disconnect between high market expectations and actual performance.
- Cautious Outlook: Sanmina projects Q2 net sales between $3.1 billion and $3.4 billion; although the adjusted EPS forecast exceeds the average analyst estimate, the market's expectation for higher sales figures indicates investor concerns about future performance.
See More
US Stocks Close: S&P 500 Hits All-Time High
- S&P 500 Hits All-Time High: The S&P 500 index rose 0.41% on Tuesday, achieving a new all-time high, reflecting strong market confidence in tech stocks and chipmakers, particularly after Micron Technology announced a $24 billion investment in Singapore to expand memory chip capacity.
- Nasdaq Performance Strong: The Nasdaq 100 index increased by 0.88%, reaching a 2.75-month high, indicating investor optimism in AI infrastructure and semiconductor sectors, which propelled the broader market higher.
- Consumer Confidence Index Declines: Despite the stock market gains, the US January consumer confidence index unexpectedly fell to an 11.5-year low of 84.5, highlighting economic uncertainty that could negatively impact future consumer spending.
- Health Insurance Stocks Under Pressure: The proposal by the US government to keep payments to private Medicare plans flat next year led to a broad decline in health insurance stocks, with UnitedHealth Group forecasting a revenue contraction in 2026, marking the first annual decline in over 30 years, raising further market concerns.
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Mixed US Stock Performance with Tech Stocks Leading Gains
- Tech Stock Surge: The Nasdaq 100 index rose by 0.87%, reaching a 2.75-month high, primarily driven by strength in chipmakers and AI infrastructure stocks, indicating strong market confidence in the tech sector.
- Micron's Investment Plan: Micron Technology announced a $24 billion investment in Singapore to expand memory chip capacity, leading to a 5% stock price increase, which not only enhances its competitive position but may also stimulate growth in the related supply chain.
- Consumer Confidence Decline: Despite the stock market gains, the US January consumer confidence index unexpectedly fell to an 11.5-year low of 84.5, indicating economic uncertainty that could negatively impact consumer spending.
- Health Insurance Stocks Under Pressure: The proposed flat payments for private Medicare plans led UnitedHealth Group's stock to drop over 19%, marking the first expected revenue decline in over 30 years, reflecting the policy risks facing the healthcare sector.
See More
Amazon Adjusts Grocery Strategy, Shares Rise Over 1%
- Amazon's Strategic Shift: Amazon's decision to close its Fresh and Go brick-and-mortar stores marks a significant pivot in its grocery strategy, resulting in a more than 1% rise in its stock during midday trading, while rivals Kroger and Albertsons saw declines of about 3%.
- Micron's Expansion Investment: Micron Technology has commenced construction of an advanced wafer fabrication facility at its existing NAND manufacturing plant in Singapore, with a planned investment of approximately $24 billion over the next decade, leading to a roughly 5% increase in its stock price.
- Sysco's Earnings Beat: Sysco reported earnings that exceeded expectations, with a fiscal second-quarter EPS of $0.99 compared to the $0.98 anticipated by analysts, resulting in a 9% stock price increase and an updated full-year guidance at the higher end of $4.50 to $4.60 per share.
- UnitedHealth Stock Decline: Shares of UnitedHealth and Humana dropped about 20% after the Centers for Medicare & Medicaid Services proposed a mere 0.09% increase in 2027 Medicare Advantage payment rates, significantly lower than the expected 4% to 6% rise.
See More
Mixed US Stock Performance, Chip Stocks Lead Gains
- Chip Stock Surge: Micron Technology's announcement of a $24 billion investment in Singapore to expand memory chip capacity has led to a 4% increase in its stock price, driving broader market gains and reflecting strong confidence in the semiconductor sector.
- Health Insurance Sector Pressure: The proposed flat payments to private Medicare plans by the US government have caused UnitedHealth Group to forecast a revenue decline in 2026, marking the first annual contraction in over 30 years, resulting in a stock drop of over 19%, highlighting significant challenges in the industry.
- Economic Data Impact: The ADP report indicates that US private payrolls rose by an average of 7,750 per week in the four weeks ending January 3, the smallest increase in six weeks, which may affect investor confidence in economic recovery.
- Upcoming Economic Indicators: The market is focused on consumer confidence and initial unemployment claims data this week, with the consumer confidence index expected to rise to 91.0, potentially providing support for the market and reflecting consumer optimism about the economic outlook.
See More
Healthcare Stocks Drop as Medicare Proposal Falls Short; GM Surprises with Strong Earnings
- Healthcare Stocks Decline: Medical insurance stocks fell sharply after the Centers for Medicare & Medicaid Services proposed a mere 0.09% increase in 2027 Medicare Advantage payment rates, significantly below the expected 4-6%, leading to a 15% drop in shares of UnitedHealth and Humana, while CVS Health slid nearly 13%.
- GM's Strong Earnings: General Motors reported better-than-expected fourth-quarter earnings and a 2026 outlook that surpassed analyst forecasts, resulting in a more than 4% increase in stock price, alongside a 20% quarterly dividend hike and a $6 billion stock buyback program.
- Boeing's Positive Revenue: Boeing's fourth-quarter revenue reached $23.95 billion, exceeding the $22.6 billion expected by analysts, which boosted its stock by 2%, with the CEO expressing optimism about future prospects.
- UPS Beats Expectations: United Parcel Service reported fourth-quarter earnings of $2.38 per share on revenues of $24.48 billion, both surpassing analyst expectations, leading to a 3.6% increase in stock price.
See More
Sanmina's Earnings Beat Estimates but Stock Plummets
- Strong Earnings: Sanmina reported nearly $3.19 billion in net sales for Q1 FY2026, a significant increase from just over $2 billion last year, highlighting the company's robust growth potential in the AI market.
- Profit Growth: The company’s non-GAAP net income exceeded $132 million ($2.38 per share), surpassing analyst expectations of $2.14 per share, indicating improved profitability.
- Negative Market Reaction: Despite beating estimates, investors reacted negatively to the company's weak guidance, resulting in a nearly 22% drop in stock price, reflecting a disconnect between high market expectations and actual performance.
- Cautious Outlook: Sanmina projects Q2 net sales between $3.1 billion and $3.4 billion; although the adjusted EPS forecast exceeds the average analyst estimate, the market's expectation for higher sales figures indicates investor concerns about future performance.
See More
US Stocks Close: S&P 500 Hits All-Time High
- S&P 500 Hits All-Time High: The S&P 500 index rose 0.41% on Tuesday, achieving a new all-time high, reflecting strong market confidence in tech stocks and chipmakers, particularly after Micron Technology announced a $24 billion investment in Singapore to expand memory chip capacity.
- Nasdaq Performance Strong: The Nasdaq 100 index increased by 0.88%, reaching a 2.75-month high, indicating investor optimism in AI infrastructure and semiconductor sectors, which propelled the broader market higher.
- Consumer Confidence Index Declines: Despite the stock market gains, the US January consumer confidence index unexpectedly fell to an 11.5-year low of 84.5, highlighting economic uncertainty that could negatively impact future consumer spending.
- Health Insurance Stocks Under Pressure: The proposal by the US government to keep payments to private Medicare plans flat next year led to a broad decline in health insurance stocks, with UnitedHealth Group forecasting a revenue contraction in 2026, marking the first annual decline in over 30 years, raising further market concerns.
See More
Mixed US Stock Performance with Tech Stocks Leading Gains
- Tech Stock Surge: The Nasdaq 100 index rose by 0.87%, reaching a 2.75-month high, primarily driven by strength in chipmakers and AI infrastructure stocks, indicating strong market confidence in the tech sector.
- Micron's Investment Plan: Micron Technology announced a $24 billion investment in Singapore to expand memory chip capacity, leading to a 5% stock price increase, which not only enhances its competitive position but may also stimulate growth in the related supply chain.
- Consumer Confidence Decline: Despite the stock market gains, the US January consumer confidence index unexpectedly fell to an 11.5-year low of 84.5, indicating economic uncertainty that could negatively impact consumer spending.
- Health Insurance Stocks Under Pressure: The proposed flat payments for private Medicare plans led UnitedHealth Group's stock to drop over 19%, marking the first expected revenue decline in over 30 years, reflecting the policy risks facing the healthcare sector.
See More
Amazon Adjusts Grocery Strategy, Shares Rise Over 1%
- Amazon's Strategic Shift: Amazon's decision to close its Fresh and Go brick-and-mortar stores marks a significant pivot in its grocery strategy, resulting in a more than 1% rise in its stock during midday trading, while rivals Kroger and Albertsons saw declines of about 3%.
- Micron's Expansion Investment: Micron Technology has commenced construction of an advanced wafer fabrication facility at its existing NAND manufacturing plant in Singapore, with a planned investment of approximately $24 billion over the next decade, leading to a roughly 5% increase in its stock price.
- Sysco's Earnings Beat: Sysco reported earnings that exceeded expectations, with a fiscal second-quarter EPS of $0.99 compared to the $0.98 anticipated by analysts, resulting in a 9% stock price increase and an updated full-year guidance at the higher end of $4.50 to $4.60 per share.
- UnitedHealth Stock Decline: Shares of UnitedHealth and Humana dropped about 20% after the Centers for Medicare & Medicaid Services proposed a mere 0.09% increase in 2027 Medicare Advantage payment rates, significantly lower than the expected 4% to 6% rise.
See More
Mixed US Stock Performance, Chip Stocks Lead Gains
- Chip Stock Surge: Micron Technology's announcement of a $24 billion investment in Singapore to expand memory chip capacity has led to a 4% increase in its stock price, driving broader market gains and reflecting strong confidence in the semiconductor sector.
- Health Insurance Sector Pressure: The proposed flat payments to private Medicare plans by the US government have caused UnitedHealth Group to forecast a revenue decline in 2026, marking the first annual contraction in over 30 years, resulting in a stock drop of over 19%, highlighting significant challenges in the industry.
- Economic Data Impact: The ADP report indicates that US private payrolls rose by an average of 7,750 per week in the four weeks ending January 3, the smallest increase in six weeks, which may affect investor confidence in economic recovery.
- Upcoming Economic Indicators: The market is focused on consumer confidence and initial unemployment claims data this week, with the consumer confidence index expected to rise to 91.0, potentially providing support for the market and reflecting consumer optimism about the economic outlook.
See More
Healthcare Stocks Drop as Medicare Proposal Falls Short; GM Surprises with Strong Earnings
- Healthcare Stocks Decline: Medical insurance stocks fell sharply after the Centers for Medicare & Medicaid Services proposed a mere 0.09% increase in 2027 Medicare Advantage payment rates, significantly below the expected 4-6%, leading to a 15% drop in shares of UnitedHealth and Humana, while CVS Health slid nearly 13%.
- GM's Strong Earnings: General Motors reported better-than-expected fourth-quarter earnings and a 2026 outlook that surpassed analyst forecasts, resulting in a more than 4% increase in stock price, alongside a 20% quarterly dividend hike and a $6 billion stock buyback program.
- Boeing's Positive Revenue: Boeing's fourth-quarter revenue reached $23.95 billion, exceeding the $22.6 billion expected by analysts, which boosted its stock by 2%, with the CEO expressing optimism about future prospects.
- UPS Beats Expectations: United Parcel Service reported fourth-quarter earnings of $2.38 per share on revenues of $24.48 billion, both surpassing analyst expectations, leading to a 3.6% increase in stock price.
See More
