New York, Jan 28, 2026, 15:35 EST — Regular session
- Sanmina shares climbed roughly 7% in late trading, bouncing back from a steep drop following earnings.
- After robust Q1 headline numbers, investors are zeroing in on the revenue outlook for the March quarter
- According to GuruFocus, Argus Research has raised its price target on Sanmina to $200.
Sanmina Corp shares jumped roughly 7% to $153 in Wednesday afternoon trading, recovering alongside other electronics manufacturing services stocks following a tough day prior.
Sanmina staged a quick rebound after getting “trampled” on Tuesday as investors dumped shares following the company’s forward outlook. The sharp bounce has thrust Sanmina back into focus for traders heading into the session’s last hour. (Investors)
Why it matters now: Sanmina’s updated outlook is seen as a key indicator of upcoming spending on cloud and AI infrastructure hardware, areas where the company has aimed to grow. The stock’s volatile moves underline just how swiftly investors shift their expectations when guidance misses the mark.
Sanmina projected its fiscal second-quarter revenue between $3.1 billion and $3.4 billion, falling short of analysts’ estimates referenced by Investing.com. The firm also set its adjusted earnings per share guidance at $2.25 to $2.55 for the quarter. (Investing)
Sanmina posted first-quarter revenue of $3.19 billion, with non-GAAP diluted EPS at $2.38 and a non-GAAP operating margin of 6.0%. CEO Jure Sola pointed to strong demand in communications networks as well as cloud and AI infrastructure. The ZT Systems integration is progressing as planned, he added. The company also bought back $79 million in shares during the quarter. (Sanmina Investor Relations)
Non-GAAP results exclude specific costs and one-time charges, aiming to highlight core performance. Companies frequently push these figures to emphasize underlying trends. The difference between GAAP and adjusted earnings remains a sticking point for some investors following the guidance miss.
Wednesday saw a lift in that discussion as Argus Research’s Jim Kelleher kept his buy rating on Sanmina and bumped up the price target to $200, GuruFocus noted. (GuruFocus)
Sanmina wrapped up its purchase of ZT Systems’ data center infrastructure manufacturing unit from AMD in October and has been working to integrate the business since. This move boosts Sanmina’s foothold in cloud and AI hardware production—sectors investors have been banking on to support lofty growth projections. (Sanmina Investor Relations)
But there’s a clear downside risk: if demand for cloud and AI infrastructure fades more quickly than customers anticipate, the March-quarter revenue forecast might be too optimistic — or the product mix could shift, squeezing margins. Execution challenges with integrating ZT Systems, plus fluctuations in tariffs and trade policies, could also impact costs and timing.
What’s coming up is clear-cut: traders will zero in on whether Sanmina meets its second-quarter guidance. The next major milestone is the earnings report for the quarter ending March 28.
