Core Insights - Sanmina's third-quarter results exceeded Wall Street expectations, driven by strong revenue growth and improved non-GAAP earnings per share [1][3] - The company experienced heightened demand in communication networks and cloud and AI infrastructure segments, benefiting from a favorable product mix and operational efficiencies [1][3] - Ongoing investments in technology and capacity are positioning Sanmina for continued growth, as highlighted by CEO Jure Sola [1] Financial Performance - Revenue for Q3 was $2.10 billion, surpassing analyst estimates of $2.05 billion, reflecting a 3.9% year-on-year growth and a 2.2% beat [6] - Adjusted EPS was reported at $1.67, exceeding analyst expectations of $1.57, marking a 6.7% beat [6] - Adjusted EBITDA reached $154.9 million, with a margin of 7.4%, also beating analyst estimates of $151.5 million [6] Guidance and Market Outlook - Revenue guidance for Q4 is set at $3.05 billion at the midpoint, significantly above analyst estimates of $2.13 billion [6] - Adjusted EPS guidance for Q4 is projected at $2.10 at the midpoint, again above analyst expectations of $1.69 [6] - The operating margin for the quarter was 5.2%, consistent with the same quarter last year [6] Analyst Insights - CFO Jonathan Faust confirmed ZT Systems is operating at a $5–6 billion annual run rate with margins aligned with Sanmina's guidance [6] - Expectations for mid-single-digit growth in the legacy business are anticipated in the first quarter, with acceleration to high single digits later [6] - CEO Jure Sola indicated that Sanmina is expanding engineering and integrating teams to capitalize on opportunities in partnership with AMD [6] AI and Future Opportunities - Sanmina's pipeline for AI opportunities is strong, positioning the company to compete in data center AI for the coming years [6]