Earnings Recap — Q3 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 7 of last 7 quarters
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Sanmina's strong quarter and raised guidance underscore the accelerating AI infrastructure buildout, with Core Sanmina's cloud/AI end market growing 173.2% YoY and ZT Systems securing next-gen accelerated compute orders. The company's investments in metal fabrication, high-tech PCBs, and ZT capacity position it to capture more of the AI rack and systems value chain, supporting the broader AI infrastructure expansion.
Sanmina delivered a strong Q3 FY2026 with revenue of $3.46B, up 69.7% YoY, driven by broad-based growth in Core Sanmina (up 17%) and ZT Systems (at midpoint). Non-GAAP operating margin expanded to 8.0% (up 230 bps YoY) and EPS of $3.31 (up 116% YoY), both exceeding guidance, helped by favorable mix and non-recurring engineering services. ZT Systems continued to secure next-generation accelerated compute orders with hyperscale and OEM customers, and the company expanded its customer base. Core Sanmina's communications/cloud/AI end market grew 173.2% YoY (including ZT), and CPS grew 29.2% YoY, with investments in metal fabrication and high-tech PCBs starting to pay off. Cash flow from operations was $124.5M, with capex of $100.9M, and the company ended the quarter with $1.84B cash and no revolver borrowings.
Management raised full-year fiscal 2026 revenue guidance to $14.0B-$14.3B and EPS to $11.90-$12.20, reflecting strong execution and confidence. For Q4 FY2026, they guide revenue of $3.3B-$3.6B, with Core Sanmina at $2.5B-$2.6B and ZT Systems at $0.8B-$1.0B (lower due to legacy program timing). Non-GAAP operating margin is expected at 7.5%-8.0%, with EPS of $3.05-$3.35. Management reiterated confidence in $16B+ revenue for fiscal 2027, with growth weighted to the second half, driven by AI data center demand and new program ramps. They expect working capital to build as they invest in the accelerated compute ramp, and they continue to invest in capacity across metal fabrication, PCB, and ZT Systems capabilities.
“We are very pleased with our results for the quarter which as you can see, either met or exceeded our previously communicated outlook.”
on Quarterly performance
“We are working in very close collaboration with AMD and our joint customers to support almost all pre-production activities providing the quality, delivery, and services to support customer needs.”
on AMD partnership
“AI demand is very strong.”
on AI demand
How should we think about operating margins going forward as ZT related AI revenues become a higher part of the mix? And what was the margin impact of non-recurring engineering services?
Margin beat driven by mix and NRE services. Core Sanmina and ZT both performed well. NRE services contributed to margin but will ramp down over time. Long-term margin still expected in 6%-7% range.
Can you double-click on new wins relative to alternate chip designers or rack manufacturers, particularly Cerebras?
Confirmed Cerebras as an additional platform win in Core Sanmina. Broader focus on cloud/AI infrastructure is yielding new program wins across multiple platforms, contributing to strong growth in that end market.
What kind of share should we consider for you guys having next year around AMD Helios production? And how might that change H1 to H2?
Management is confident in $16B+ revenue for FY2027. They are prepared for the ramp, with investments made. Expect revenue to ramp over time throughout 2027, with more details on the formal guide at Q4 earnings.