Sanmina Reports Strong Q2 Fiscal 2026 Results, Driven by ZT Acquisition, and Authorizes $600M Share Repurchase
SANM has more than doubled off its 52-week low of $74.9 on elevated volume (2.3× avg).
Summary
Sanmina Corporation reported strong Q2 fiscal 2026 results with significant revenue and EPS growth, primarily driven by the ZT Systems acquisition, and authorized a new $600 million share repurchase program, while also detailing ongoing legal and tax risks.
Key Events · Earnings and Guidance · SANM
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Strong Q2 Fiscal 2026 Financial Performance
Net sales increased by 102% to $4.01 billion for the three months ended March 28, 2026, compared to the prior year, with diluted EPS rising 46.6% to $1.70. This growth was primarily driven by the ZT Systems acquisition and new program wins in communications networks and medical end markets.
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Authorization of $600 Million Share Repurchase Program
Subsequent to the quarter end, the Board of Directors authorized the repurchase of up to $600 million of common stock, following $239 million in repurchases during the six months ended March 28, 2026. This program has no expiration date.
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ZT Systems Acquisition Drives Growth
The acquisition of ZT Systems, completed on October 27, 2025, significantly contributed to revenue, adding $1.9 billion for the three months and $3 billion for the six months ended March 28, 2026. The fair value of contingent cash consideration related to the acquisition was adjusted upwards by $59 million during the quarter, increasing the liability to $170 million.
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Increased Debt for Acquisition Financing
Long-term debt increased substantially to $2.0 billion as of March 28, 2026, from $283 million in September 2025, primarily due to new term loans totaling $2.2 billion to finance the ZT Systems acquisition. The company remains in compliance with all debt covenants.
Analysis · SANM · Manufacturing
This 10-Q filing provides comprehensive details supporting the robust second-quarter fiscal 2026 financial results, which were previously announced in an 8-K. The significant revenue and EPS growth, largely fueled by the ZT Systems acquisition, demonstrates strong operational performance. The authorization of a substantial $600 million share repurchase program signals confidence in future cash flow and a commitment to returning capital to shareholders. Investors should note the detailed impact of the ZT acquisition on segment performance and the increase in long-term debt to finance it. While the financial performance is strong, the ongoing legal proceedings, including a $100 million alleged False Claims Act suit and multiple labor lawsuits, represent material unquantified risks that warrant close monitoring.
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In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SANM was trading at $214.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $10.3B. The 52-week trading range was $74.90 to $197.63. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.