Sanmina Reports Strong Q1 Earnings but Faces Sales Forecast Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Should l Buy SANM?
Source: Fool
Sanmina Corp's shares fell 19.18% as the stock hit a 5-day low amid a weaker sales forecast for Q2 2026.
The company expects Q2 sales between $3.1 billion and $3.4 billion, with the midpoint of $3.25 billion falling short of analysts' expectations of $3.51 billion, indicating potential softening in market demand. Despite this, Sanmina reported strong Q1 2026 earnings with revenue of $3.19 billion, a 59% year-over-year increase, and a non-GAAP EPS of $2.38, exceeding estimates by $0.25. The optimistic earnings outlook suggests resilience in profitability, even as the sales forecast raises concerns.
The market's reaction reflects a cautious sentiment towards Sanmina's future growth prospects, despite the strong performance in Q1. Investors will be closely monitoring the company's strategic adjustments and market responses to navigate the anticipated challenges.
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Analyst Views on SANM
Wall Street analysts forecast SANM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SANM is 180.00 USD with a low forecast of 180.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 142.340
Low
180.00
Averages
180.00
High
180.00
Current: 142.340
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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