Sanmina’s first quarter results were received negatively by the market, despite management highlighting robust growth in key end markets such as Communication Networks and Cloud Infrastructure. CEO Jure Sola credited the 8.1% year-over-year revenue increase to “solid execution” and a “well-diversified customer base,” with particular strength in high-performance networking and optical segments. Management acknowledged, however, that operational investments and ongoing uncertainty surrounding tariffs remain challenges for the business.
Is now the time to buy SANM? Find out in our full research report (it’s free).
Sanmina (SANM) Q1 CY2025 Highlights:
- Revenue: $1.98 billion vs analyst estimates of $1.97 billion (8.1% year-on-year growth, 1% beat)
- Adjusted EPS: $1.41 vs analyst estimates of $1.38 (2.5% beat)
- Revenue Guidance for Q2 CY2025 is $1.98 billion at the midpoint, below analyst estimates of $2.09 billion
- Adjusted EPS guidance for Q2 CY2025 is $1.40 at the midpoint, below analyst estimates of $1.60
- Operating Margin: 4.7%, in line with the same quarter last year
- Market Capitalization: $4.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Sanmina’s Q1 Earnings Call
- Ruplu Bhattacharya (Bank of America) asked about the impact of potential tariff increases and whether customers were relocating manufacturing. CEO Jure Sola explained that, so far, “nothing major really has been changed,” but that Sanmina is working with customers on contingency plans.
- Ruplu Bhattacharya (Bank of America) sought clarity on the outlook for the second half and whether guidance reflected demand weakness or prudence. Sola responded that guidance was primarily conservative due to the uncertain environment, not a visible slowdown.
- Ruplu Bhattacharya (Bank of America) inquired about inventory trends and future working capital needs. CFO Jon Faust stated that higher inventory is to support “future growth,” with ongoing efforts to improve inventory turns.
- Steven Fox (Fox Advisors) requested more detail on capacity investments in India, the U.S., and Mexico. Sola and Faust highlighted that these investments are focused on data center demand and advanced manufacturing capabilities.
- Anja Soderstrom (Sidoti) asked about new customer wins and competitive positioning. Sola emphasized that wins were broad-based, spanning energy, communications, defense, and medical, and that Sanmina competes on technology, flexibility, and global reach.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will track (1) the pace and execution of Sanmina’s capacity expansions in India, Mexico, and North America, (2) signs of stabilization or growth in end-market demand, especially for data center and networking segments, and (3) management’s ability to navigate tariff and geopolitical uncertainties. The evolution of customer program mix and new project onboarding will also be important for future results.
Sanmina currently trades at $89.48, up from $80.57 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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