Sanmina-Sci (SAYN) AI Stock Analysis

Company Guidance

For fiscal Q1 2027, Sanmina expects revenue between $3.8 billion and $4.1 billion, cloud and AI systems revenue to be between $1.3 billion to $1.5 billion, non-GAAP operating margin of 7.0% to 7.5%, depending on mix, other income and expense to be a net expense of approximately $24 million, a non-GAAP effective tax rate between 21% to 23%, an approximate $5 million noncash reduction to net income for India joint venture partners' equity interest, non-GAAP diluted earnings per share in the range of $3.50 to $3.85 based on approximately 55 million diluted shares outstanding, capital expenditures of $150 million and depreciation of approximately $48 million; at the midpoint, total Sanmina revenue would be $3.95 billion, representing 23.8% growth versus the same period a year ago, and EPS of $3.675 represents a 54.4% increase compared to the same period a year ago. For fiscal year 2027, Sanmina expects revenue between the $17.5 billion and $19.5 billion, cloud and AI system revenue in the range of $7.5 billion to $9.0 billion, non-GAAP operating margin of 7.0% to 7.5%, depending on mix, other income and expense to be a net expense of approximately $140 million, a non-GAAP effective tax rate between 21% to 23%, an approximate $20 million noncash reduction to net income for India joint venture partners' equity interest, non-GAAP diluted earnings per share in the range of $15.50 to $17.50 based on approximately 55 million fully diluted shares outstanding, capital expenditures of $450 million and depreciation of approximately $200 million; the revenue midpoint of $18.5 billion represents 27.4% growth versus the same period a year ago, and the EPS midpoint of $16.50 represents a 24.2% increase compared to the same period a year ago. The cloud and AI systems business is expected to be back-end loaded to the second half, with strong demand for AI hardware in the second half of fiscal '27, while core Sanmina is expected to grow low double digits.