Sanmina Shares Plunge 10% on Weaker Sales Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy SANM?
Source: seekingalpha
- Sales Forecast Downgrade: Sanmina expects second-quarter sales between $3.1 billion and $3.4 billion, with the midpoint of $3.25 billion falling short of analysts' $3.51 billion expectations, indicating a potential softening in market demand.
- Optimistic Earnings Outlook: The company anticipates earnings per share between $2.25 and $2.55, with a midpoint of $2.40 exceeding the $2.27 estimate, suggesting resilience in profitability despite sales concerns.
- Strong Q1 Performance: For the period ending December 27, Sanmina reported adjusted earnings of $2.38 per share, surpassing estimates by $0.25, while sales surged 59% year-over-year to $3.19 billion, reflecting robust demand for AI-driven hardware.
- Positive Future Outlook: CEO Jure Sola highlighted ongoing strong demand in communications networks and cloud AI infrastructure markets, with ZT Systems integration meeting expectations, and emphasized a focus on deeper customer partnerships to drive long-term shareholder value.
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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.
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