-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
SANM delivered exceptional Q2 results, with revenue of $4.01B (+102% Y/Y) and non-GAAP EPS of $3.16 (+124% Y/Y), crushing guidance of $2.55-$2.85. ZT Systems significantly outperformed expectations with accelerated compute shipments, while core Sanmina grew 7.3% independently. Non-GAAP operating margin expanded to 6.4% from 5.6% prior year, validating our thesis that ZT can deliver immediate accretion while maintaining operational discipline during integration. Management raised FY 26 revenue guidance to $13.7B-$14.3B, based on strong performance and AI infrastructure backlogs visibility. We believe the combination positions SANM well for continued AI infrastructure strategy execution, supported by robust balance sheet with $1.58B cash and new $600M share repurchase authorization. However, elevated leverage from $2.17B total debt requires monitoring despite strong $342M Q2 free cash flow generation comfortably supporting debt service requirements.