Sanmina(US:SANM)2026-01-26 23:00Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.19 billion, representing a 59% increase compared to the same period last year [10][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase from the previous year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15] - CPS revenue was $434 million, a 4.3% increase year-over-year, but lower than recent performance due to investments for new programs [16] Market Data and Key Metrics Changes - Communication networks, cloud, and AI infrastructure accounted for approximately 62% of total revenue, with core business growing about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation represented 38% of revenue, slightly down 3% year-over-year [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, focusing on AI opportunities [35] - Strategic investments are planned in technologies and capabilities to strengthen market position and support growth expectations [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across most end markets and expects continued growth in fiscal 2026 [29][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings [17][19] Q&A Session Summary Question: Can you help me parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and expects core Sanmina to grow quarter-over-quarter and double digits year-over-year [42][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing and they are focused on future business opportunities, with strong demand expected [47][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications sector and expects continued strength throughout the year [56][58] Question: Where was the pocket of weakness in the industrial, medical, auto, and defense segments? - Management identified automotive and transportation as areas of recent weakness but expects stabilization and recovery in the future [84][86]