Sanmina Stock Surges After AI Server Boom Fuels Blowout Quarter and Fiscal 2027 Outlook Tops Expectations

Shares of Sanmina Corp. jumped more than 10% on Tuesday after the electronics manufacturer reported fiscal fourth-quarter results well above Wall Street estimates and gave a fiscal 2027 forecast that beat expectations, driven by demand for AI server systems.

The stock rose $15.95 to $165.59 in morning trading on the Nasdaq, extending an 11% gain in Monday's regular session. Volume was well above average, and the company is valued at about $8.8 billion. The shares had traded as high as $180 in after-hours trading Monday before giving back part of the gain.

Sanmina, based in San Jose, California, said revenue for the quarter ended Oct. 3 rose 84% to $3.86 billion, from $2.10 billion a year earlier. Analysts had expected $3.48 billion, and the result beat the company's own forecast of $3.3 billion to $3.6 billion.

Adjusted earnings were $4.43 per share, beating the $3.19 consensus estimate by about 39%. GAAP earnings were $2.14 per share.

"This was a transformative year for Sanmina as we delivered strong broad-based growth across all of our end markets, integrated the ZT Systems business, strengthening our position in the Cloud and AI Infrastructure end market, and grew our core Sanmina business by double digits year-over-year, maintaining a well-diversified portfolio," said Jure Sola, chairman and chief executive.

On the call with analysts, Sola said: "We are executing to our business plan. We exceeded all our outlook, both the fourth quarter and fiscal year 2026."

Fiscal 2026 was the first full year to include ZT Systems, the server rack manufacturing business Sanmina bought from Advanced Micro Devices in October 2025. ZT now builds complete rack-scale AI systems for cloud customers, and it contributed $884 million of fourth-quarter revenue. Sanmina's core business grew 41.9% to $2.97 billion.

Revenue from cloud and AI infrastructure rose 198% to $9.25 billion in fiscal 2026, about 64% of total sales. Full-year revenue rose 79% to $14.53 billion, and adjusted earnings more than doubled to $13.28 a share from $6.04.

Sanmina's outlook was well above expectations. The company forecast fiscal first-quarter revenue of $3.8 billion to $4.1 billion and adjusted earnings of $3.50 to $3.85 per share. The midpoint of the earnings range is roughly 25% above analysts' consensus of $2.95.

For fiscal 2027, Sanmina projected revenue of $17.5 billion to $19.5 billion and adjusted earnings of $15.50 to $17.50 per share. At the midpoint, that implies about 27% revenue growth and 24% earnings growth. The company expects its cloud and AI systems business, which includes ZT, to generate $7.5 billion to $9 billion, up from $5.35 billion in fiscal 2026, with growth speeding up in the second half of the year.

When it announced the ZT deal in May 2025, Sanmina said it expected revenue to double from about $8 billion to about $16 billion within three years. Its new guidance puts it ahead of that target.

The company generated $944 million in operating cash flow in fiscal 2026 and $541 million in free cash flow, and it continued to buy back shares.

The rally comes after a steep decline. Before the report, the stock had fallen sharply from its 52-week high of $288.68 amid wider worries about AI spending and supplier margins. That decline made the strong results land harder with investors.

Not every analyst turned more bullish. JPMorgan cut its price target to $230 from $270 and kept a Neutral rating, a change that analysts described as a recalibration of its model rather than a new endorsement.

Sanmina, founded in Silicon Valley in 1980, also makes equipment for communications networks, industrial and energy customers, medical devices, defense and aerospace, and the auto industry. Executives said demand was strong across those markets too, not just AI.