Q1 2026 Sanmina Corp Earnings Call

January 26, 2026

Speaker #1: Good afternoon, ladies and gentlemen, and welcome to Sanmina's first quarter fiscal 2026 earnings conference call. At this time, all lines are in listen-only mode.

Operator: Good afternoon, ladies and gentlemen, and welcome to Sanmina's First Quarter Fiscal 2026 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, 26 January 2026. I would now like to turn the conference over to Paige Melchi, SVP of Investor Communications. Please go ahead.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.

Speaker #1: This call is being recorded on Monday, January 26, 2026. I would now like to turn the conference over to Paige Melching, SVP of Investor Communications. Please go ahead.

Speaker #1: ahead. Thanks,

Paige Melching: Thanks, Constantine. Good afternoon, ladies and gentlemen, and welcome to Sanmina's First Quarter Fiscal 2026 Earnings Call. A copy of our press release and slides for today's discussion are available on our website at sanmina.com in the Investor Relations section. Joining me on today's call is Jure Sola, Chairman and Chief Executive Officer.

Speaker #2: Constantine: Good afternoon, ladies and gentlemen, and welcome to Sanmina's first quarter fiscal 2026 earnings call. A copy of our press release and slides for today's discussion are available on our website at sanmina.com in the Investor Relations section.

Joining me on today's call is Jure Sola, Chairman and Chief Executive Officer.

Q1 2026 Sanmina Corp Earnings Call

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Q1 2026 Sanmina Corp Earnings Call

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Monday, January 26th, 2026 at 10:00 PM

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Jure Sola: Good afternoon.

Speaker #2: And good afternoon. Jonathan Faust, Executive Vice President.

Paige Melching: Jon Faust, Executive Vice President and Chief Financial Officer.

Speaker #2: and Chief Financial Officer. Good. Before I turn the call over to

Speaker #3: afternoon.

Jure Sola: Good afternoon.

Jon Faust: Good afternoon.

Paige Melching: Before I turn the call over to Jure, let me remind everyone that today's call is being webcasted and recorded and will be available on our website. You can follow along with our prepared remarks in the slides provided on our website. Please turn to slide three of our presentation and take note of our safe harbor statement. During this conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution you that such statements are just projections. The company's actual results could differ materially from those projected in these statements as a result of factors set forth in the safe harbor statement.

Speaker #2: Jure, let me remind everyone that today's call is being webcast and recorded and will be available on our website. You can follow along with our prepared remarks in the slides provided on our website.

Speaker #2: Please turn to slide three of our presentation and take note of our Safe Harbor statement. During this conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company.

During this conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We caution you that such statements are just projections. The company's actual results could differ materially from those projected in these statements as a result of factors set forth in the safe harbor statement.

Speaker #2: We caution you that such statements are just projections. The company's actual results could differ materially from those projected in these statements as a result of factors set forth in the safe harbor statement.

Paige Melching: The company is under no obligation to and expressly disclaims any obligation to update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in the investor relations section of our website, whether as a result of new information, future events, or otherwise, unless otherwise required by law. Included in our press release and slides issued today, we have provided you with statements of operation for the first quarter ended December 27, 2025, on a GAAP basis, as well as certain non-GAAP financial information. A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items.

The company is under no obligation to and expressly disclaims any obligation to update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in the investor relations section of our website, whether as a result of new information, future events, or otherwise, unless otherwise required by law. Included in our press release and slides issued today, we have provided you with statements of operation for the first quarter ended December 27, 2025, on a GAAP basis, as well as certain non-GAAP financial information.

Speaker #2: The company is under no obligation to, and expressly disclaims any obligation to, update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in the Investor Relations section of our website.

Speaker #2: Whether as a result of new information, future events, or otherwise, unless otherwise required by law. Included in our press release and slides issued today, we have provided you with statements of operations for the first quarter ended December 27, 2025, on a GAAP basis as well as certain non-GAAP financial information.

Speaker #2: A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items.

A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items.

Speaker #2: Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results. Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, tax, net income, and earnings per share, we are referring to our non-GAAP information.

Paige Melching: Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results. Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, tax, net income, and earnings per share, we are referring to our non-GAAP information. I'd now like to turn the call over to Jure.

Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results. Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, tax, net income, and earnings per share, we are referring to our non-GAAP information. I'd now like to turn the call over to Jure.

Speaker #2: I'd now like to turn the call

Speaker #2: over to Jure. Thanks,

Jure Sola: Thanks, Paige. Good afternoon, ladies and gentlemen. Welcome, and thank you all for being here with us today. Happy New Year, and all the best to all of you. First, I would like to take this opportunity to recognize our employees and Sanmina leadership team for doing a great job. So to you, Sanmina's team, thank you for your dedication, hard work, and delivering excellent service to our customers. Please turn to slide number four. Ladies and gentlemen, I can tell you that I'm very pleased with our performance for Q1. Overall, we're executing according to our plan. Revenue came in at $3.19 billion, non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38, and we delivered strong cash flow from operation of $179 million.

Speaker #3: Paige: Good afternoon, ladies and gentlemen. Welcome, and thank you all for being here with us today. And happy New Year, and all the best to all of you.

Speaker #3: First, I would like to take this opportunity to recognize our employees in the Sanmina leadership team for doing a great job. So, to you, Sanmina's team, thank you.

Speaker #3: For your dedication, hard work, and delivering excellent service to our customers, please turn to slide number four. Ladies and gentlemen, I can tell you that I'm very pleased with our performance for the first quarter.

Please turn to slide number four. Ladies and gentlemen, I can tell you that I'm very pleased with our performance for Q1. Overall, we're executing according to our plan. Revenue came in at $3.19 billion, non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38, and we delivered strong cash flow from operation of $179 million.

Speaker #3: Overall, we're executing according to our plan. Revenue came in at $3.19 billion, non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38.

Speaker #3: And we delivered strong cash flow from operations of $179 million. Again, I'm excited about the future opportunities that we have in front of us.

Jure Sola: Again, I'm excited about the future opportunities that we have in front of us. So now let's go to our agenda for today's call. We have Jon, our CFO, to review details of our results for you. I will follow up with additional comments about the results and future goals. Then Jon and I will open for questions and answers. And now, I'd like to turn this call over to Jon. Jon?

Again, I'm excited about the future opportunities that we have in front of us. So now let's go to our agenda for today's call. We have Jon, our CFO, to review details of our results for you. I will follow up with additional comments about the results and future goals. Then Jon and I will open for questions and answers. And now, I'd like to turn this call over to Jon. Jon?

Speaker #3: So now let's go to our agenda for today's call. We have Jon, our CFO, to review details of our results for you. I will follow up with additional comments about the results and future goals.

Speaker #3: Then Jon and I will open for questions and answers. And now, I'd like to turn this call over to Jon. Jon, great.

Jon Faust: Great. Thank you, Yuri, and good afternoon, ladies and gentlemen, and thank you for joining today's earnings call. Before I review our financial results for the quarter, I want to acknowledge the entire Sanmina team for their focused execution and thank them for delivering a solid start to the new fiscal year. Now, please turn to slide six, where I'll speak to the financial highlights. We're very pleased with our first quarter results, which, as you can see, either met or exceeded all of our outlook commitments. Our revenue of $3.19 billion, and our non-GAAP operating margin of 6.0%, each came in towards the high end of our outlook. In regards to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges.

Speaker #4: Thank you, Jure. And good afternoon, ladies and gentlemen. Thank you for joining today's earnings call. Before I review our financial results for the quarter, I want to acknowledge the entire Sanmina team for their focused execution, and thank them for delivering a solid start to the new fiscal year.

Speaker #4: Now, please turn to slide six, where I'll speak to the financial highlights. We're very pleased with our first quarter results, which, as you can see, either met or exceeded all of our outlook commitments.

Speaker #4: Our revenue of $3.19 billion and our non-GAAP operating margin of 6.0% each came in toward the high end of our outlook. In regard to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges.

Our revenue of $3.19 billion, and our non-GAAP operating margin of 6.0%, each came in towards the high end of our outlook. In regards to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges.

Speaker #4: Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. These results represent a great start to fiscal 2026 and set us on the right path towards achieving our growth and margin expansion objectives for the year.

Jon Faust: Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. These results represent a great start to fiscal 2026, and sets us on the right path towards achieving our growth and margin expansion objectives for the year. Now, please turn to slide 7, where I'll speak to the P&L performance. As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago. This was driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business, which Jure will speak to in more detail as a part of his prepared remarks.

Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. These results represent a great start to fiscal 2026, and sets us on the right path towards achieving our growth and margin expansion objectives for the year. Now, please turn to slide 7, where I'll speak to the P&L performance. As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago.

Speaker #4: Now, please turn to slide seven, where I'll speak to the P&L performance. As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago.

Speaker #4: This was driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business, which Jure will speak to in more detail as part of his prepared remarks.

This was driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business, which Jure will speak to in more detail as a part of his prepared remarks.

Speaker #4: Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. This was driven by favorable mix as well as operational efficiencies.

Jon Faust: Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. This was driven by favorable mix as well as operational efficiencies. Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. We continued to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner. Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago, and at the 6% level for the second quarter in a row. This is a result of revenue growth, favorable mix, and strong operational discipline.

Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. This was driven by favorable mix as well as operational efficiencies. Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. We continued to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner.

Speaker #4: Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. We continued to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner.

Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago, and at the 6% level for the second quarter in a row. This is a result of revenue growth, favorable mix, and strong operational discipline.

Speaker #4: Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago, and at the 6% level for the second quarter in a row.

Speaker #4: This is a result of revenue growth, favorable mix, and strong operational discipline. Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance, driven by our strong cash generation.

Jon Faust: Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance, driven by our strong cash generation. Non-GAAP diluted earnings per share came in at $2.38, based on approximately 56 million shares outstanding, and up 66.1% compared to the same period a year ago. As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for Q1 represent a solid start towards achieving that objective. Now, please turn to slide eight, where I'll speak to the segment results.

Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance, driven by our strong cash generation. Non-GAAP diluted earnings per share came in at $2.38, based on approximately 56 million shares outstanding, and up 66.1% compared to the same period a year ago.

Speaker #4: Non-GAAP diluted earnings per share came in at $2.38, based on approximately 56 million shares outstanding and up 66.1% compared to the same period a year ago.

As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for Q1 represent a solid start towards achieving that objective. Now, please turn to slide eight, where I'll speak to the segment results.

Speaker #4: As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for the first quarter represent a solid start toward achieving that objective.

Speaker #4: Now, please turn to slide eight where I'll speak to the segment results. IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business.

Jon Faust: IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business. IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago. This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses. CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago.

IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business, and the addition of the ZT Systems business. IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago.

Speaker #4: IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago. This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses.

This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses. CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago.

Speaker #4: CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago.

Speaker #4: That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin-accretive growth in the near future, as well as a few program transitions.

Jon Faust: That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin accretive growth in the near future, as well as a few program transitions. While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward. Now, please turn to slide 9, where I'll speak to the balance sheet highlights. We maintained a very strong balance sheet in the first quarter. Cash and cash equivalents were $1.42 billion. At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business.

That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin accretive growth in the near future, as well as a few program transitions. While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward. Now, please turn to slide 9, where I'll speak to the balance sheet highlights.

Speaker #4: While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward.

Speaker #4: Now, please turn to slide nine where I'll speak to the balance sheet highlights. We maintained a very strong balance sheet in the first quarter.

We maintained a very strong balance sheet in the first quarter. Cash and cash equivalents were $1.42 billion. At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business.

Speaker #4: Cash and cash equivalents were $1.42 billion. At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business.

Speaker #4: We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition.

Jon Faust: We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition. Inventory turns, net of customer advances, were 5.3 times for the quarter, down from 5.8 times in the same period a year ago, driven by the ZT Systems acquisition. It's also important to note that that Q1 calculation only includes 2 months of the ZT Systems cost of goods sold. Now, that being said, Core Sanmina inventory turns, net of customer advances, improved for the quarter, both sequentially and versus the same period a year ago. While we're pleased with these results, we believe there is still room for improvement.

We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition. Inventory turns, net of customer advances, were 5.3 times for the quarter, down from 5.8 times in the same period a year ago, driven by the ZT Systems acquisition. It's also important to note that that Q1 calculation only includes 2 months of the ZT Systems cost of goods sold.

Speaker #4: Inventory turns, net of customer advances, were 5.3 times for the quarter, down from 5.8 times in the same period a year ago, driven by the ZT Systems acquisition.

Speaker #4: It's also important to note that that Q1 calculation only includes two months of ZT Systems cost of goods sold. Now, that being said, core Sanmina inventory terms net of customer advances improved for the quarter, both sequentially and versus the same period a year ago.

Now, that being said, Core Sanmina inventory turns, net of customer advances, improved for the quarter, both sequentially and versus the same period a year ago. While we're pleased with these results, we believe there is still room for improvement.

Speaker #4: While we're pleased with these results, we believe there is still room for improvement. Our non-GAAP pre-tax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago.

Jon Faust: Our non-GAAP pretax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago. We continue to have one of the strongest balance sheets in the industry, with a net leverage ratio of 0.8 times. This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing twelve months for ZT Systems wouldn't accurately represent the current run rate of the business. Our long-term net leverage target remains 1.0 times to 2.0 times, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business.

Our non-GAAP pretax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago. We continue to have one of the strongest balance sheets in the industry, with a net leverage ratio of 0.8 times. This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing twelve months for ZT Systems wouldn't accurately represent the current run rate of the business.

Speaker #4: We continue to have one of the strongest balance sheets in the industry, with a net leverage ratio of 0.8 times. This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing 12 months for ZT Systems wouldn't accurately represent the current run rate of the business.

Speaker #4: Our long-term net leverage target remains 1.0 times to 2.0 times, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business.

Our long-term net leverage target remains 1.0 times to 2.0 times, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business.

Speaker #4: I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market, with strong financial policies to guide our decision-making process.

Jon Faust: I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market, with strong financial policies to guide our decision-making process. And to be clear, our goal remains to achieve investment-grade ratings over time. Now, please turn to slide 10, where I'll speak to the cash flow highlights. As a result of the team's disciplined working capital management, our Q1 cash flow from operations came in at a solid $179 million. Capital expenditures were $87 million for the quarter, slightly above our outlook.

I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market, with strong financial policies to guide our decision-making process. And to be clear, our goal remains to achieve investment-grade ratings over time.

Speaker #4: And to be clear, our goal remains to achieve investment-grade ratings over time. Now, please turn to slide 10, where I'll speak to the cash flow highlights.

Now, please turn to slide 10, where I'll speak to the cash flow highlights. As a result of the team's disciplined working capital management, our Q1 cash flow from operations came in at a solid $179 million. Capital expenditures were $87 million for the quarter, slightly above our outlook.

Speaker #4: As a result of the team's disciplined working capital management, our first quarter cash flow from operations came in at a solid $179 million. Capital expenditures were $87 million for the quarter, slightly above our outlook.

Speaker #4: As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation in line with our capital allocation strategy.

Jon Faust: As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation, in line with our capital allocation strategy. To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets. Free cash flow was $92 million, enabled by our strong working capital management and operational discipline. During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year. At quarter-end, we had approximately $160 million remaining on our current share repurchase program.

As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation, in line with our capital allocation strategy. To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets.

Speaker #4: To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets.

Free cash flow was $92 million, enabled by our strong working capital management and operational discipline. During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year. At quarter-end, we had approximately $160 million remaining on our current share repurchase program.

Speaker #4: Pre-cash flow was $92 million, enabled by our strong working capital management and operational discipline. During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year.

Speaker #4: At quarter end, we had approximately $160 million remaining on our current share repurchase program. Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business, while also returning capital to shareholders, all within the disciplined and balanced capital allocation framework.

Jon Faust: Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business, while also returning capital to shareholders, all within a disciplined and balanced capital allocation framework. Now, please turn to slide 11, where I'll speak to our capital allocation strategy. When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions. As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. We evaluate all investments with discipline and take a structured ROI-based approach. Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth.

Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business, while also returning capital to shareholders, all within a disciplined and balanced capital allocation framework. Now, please turn to slide 11, where I'll speak to our capital allocation strategy. When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions.

Speaker #4: Now, please turn to slide 11 where I'll speak to our capital allocation strategy. When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions.

As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. We evaluate all investments with discipline and take a structured ROI-based approach. Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth.

Speaker #4: As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. We evaluate all investments with discipline and take a structured ROI-based approach.

Speaker #4: Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth. Third, we carefully manage our balance sheet and liquidity position, with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. And finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position.

Jon Faust: Third, we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. Finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position. We have, and will continue, to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business. Now, please turn to slide 12, where I'll provide our outlook for the second quarter, which is based on current customer forecasts, a full quarter of the ZT Systems business, and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape. Our second quarter outlook is as follows: We expect revenue between $3.1 billion to $3.4 billion.

Third, we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. Finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position. We have, and will continue, to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business.

Speaker #4: We have and will continue to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business.

Now, please turn to slide 12, where I'll provide our outlook for the second quarter, which is based on current customer forecasts, a full quarter of the ZT Systems business, and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape. Our second quarter outlook is as follows: We expect revenue between $3.1 billion to $3.4 billion.

Speaker #4: Now, please turn to slide 12 where I'll provide our outlook for the second quarter, which is based on current customer forecasts for a full quarter of the ZT Systems business and takes into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape.

Speaker #4: Quarter outlook is as follows. We expect revenue between $3.1 billion to $3.4 billion. At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago.

Jon Faust: At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago. We continue to expect the Core Sanmina business to grow high single digits this fiscal year. As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead. Non-GAAP operating margin of 5.7% to 6.2%, dependent on the mix of the business. We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure. We expect our non-GAAP effective tax rate to be between 21% to 23%.

At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago. We continue to expect the Core Sanmina business to grow high single digits this fiscal year. As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead.

Speaker #4: We continue to expect the core Sanmina business to grow high single digits this fiscal year. As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead.

Non-GAAP operating margin of 5.7% to 6.2%, dependent on the mix of the business. We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure. We expect our non-GAAP effective tax rate to be between 21% to 23%.

Speaker #4: Non-GAAP operating margin of 5.7% to 6.2%, dependent on the mix of the business. We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure.

Speaker #4: We expect our effective tax rate to be between 21% and 23% on a non-GAAP basis. We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partners' equity interest.

Jon Faust: We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partner's equity interest. Non-GAAP diluted earnings per share in the range of $2.25 to $2.55, based on approximately 56 million fully diluted shares outstanding. At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago. Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. And finally, depreciation of approximately $45 million. In summary, fiscal 2026 is off to a great start. We remain focused on driving revenue growth, margin expansion, and cash generation, while maintaining a healthy balance sheet and making investments that further support our strategic objectives.

We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partner's equity interest. Non-GAAP diluted earnings per share in the range of $2.25 to $2.55, based on approximately 56 million fully diluted shares outstanding. At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago.

Speaker #4: Non-GAAP diluted earnings per share in the range of $2.25 to $2.55, based on approximately 56,000 fully diluted shares outstanding. At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago.

Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. And finally, depreciation of approximately $45 million. In summary, fiscal 2026 is off to a great start. We remain focused on driving revenue growth, margin expansion, and cash generation, while maintaining a healthy balance sheet and making investments that further support our strategic objectives.

Speaker #4: Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. And finally, depreciation of approximately $45 million.

Speaker #4: In summary, fiscal 2026 is off to a great start. We remain focused on driving revenue growth, margin expansion, and cash generation, while maintaining a healthy balance sheet and making investments that further support our strategic objectives.

Speaker #4: Based on our Q1 performance and our outlook for the second quarter, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year.

Jon Faust: Based on our Q1 performance and our outlook for Q2, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year. There's a lot of work ahead of us, but we are very excited about our future. With that, let me turn the call back over to Jure.

Based on our Q1 performance and our outlook for Q2, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year. There's a lot of work ahead of us, but we are very excited about our future. With that, let me turn the call back over to Jure.

Speaker #4: There's a lot of work ahead of us, but we are very excited about our future. With that, let me turn the call back over to Yuri.

Speaker #2: Thank you, John. Ladies and gentlemen, let me add a few more comments about our results for the first quarter, and the rest of the fiscal year '26 and beyond.

Jure Sola: Thank you, John. Ladies and gentlemen, let me add a few more comments about our results for the first quarter and the rest of the fiscal year 2026 and beyond. So please turn to slide 14. As you heard from John, we delivered strong results for the first quarter. We delivered revenue on non-GAAP operating margin at the high end of our outlook, and non-GAAP diluted earnings per share exceeded our outlook. Most important, fiscal year 2026 is on track to our expectation. The way I would say it, great start to fiscal year 2026. As you can see, our consistent execution is driving our financial performance. Also, I can tell you, this is exciting time to be in Sanmina. Please turn to slide 15. Let's look at the revenue by end market for the first quarter, 2026.

Speaker #2: So, please turn to slide 14. As you heard from John, we delivered strong results for the first quarter. We delivered revenue and non-GAAP operating margin at the high end of our outlook.

Speaker #2: Diluted earnings per share and non-GAAP exceeded our outlook. Most important, fiscal year '26 is on track to our expectation. The way I would say it: great start to fiscal year 2026.

The way I would say it, great start to fiscal year 2026. As you can see, our consistent execution is driving our financial performance. Also, I can tell you, this is exciting time to be in Sanmina. Please turn to slide 15. Let's look at the revenue by end market for the first quarter, 2026.

Speaker #2: As you can see, our consistent execution is driving our financial performance. Also, I can tell you this is an exciting time to be in Sanmina.

Speaker #2: Please turn to slide 15. Let's look at the revenue by end market for the first quarter 2026. For communication networks, cloud, and AI infrastructure, that came in around 62% in total.

Jure Sola: For communication networks, cloud, and AI infrastructure, that came in around 62% in total. Sanmina core business in this segment grew year-over-year, approximately 20%. ZT revenue came per our plan at the high end of our guidance, in total of $1.964 billion. For industrial, energy, medical, defense and aerospace, automotive, and transportation, that was 38% of our revenue, or $1.226 billion. That was slightly down year-over-year, about 3%. The way I would review this segment is, it's very consistent and stable. This is a heavily regulated market that we participate, and we focus on mission-critical and advanced technology products, and I'll talk more about it later on about the future about this segment. As you can see, Sanmina is well diversified within market leaders.

For communication networks, cloud, and AI infrastructure, that came in around 62% in total. Sanmina core business in this segment grew year-over-year, approximately 20%. ZT revenue came per our plan at the high end of our guidance, in total of $1.964 billion. For industrial, energy, medical, defense and aerospace, automotive, and transportation, that was 38% of our revenue, or $1.226 billion.

Speaker #2: Sanmina core business in this segment grew year over year approximately 20%. ZT revenue came per our plan at the high end of our guidance.

Speaker #2: In total, a $1.964 billion. For Industrial, Energy, Medical, Defense and Aerospace, Automotive, and Transportation, that was 38% of our revenue, or $1.226 billion.

Speaker #2: That was slightly down year over year, about 3%. The way I would review this segment is it's very consistent and stable. This is a heavily regulated market that we participate in, and we focus on mission-critical and advanced technology products.

That was slightly down year-over-year, about 3%. The way I would review this segment is, it's very consistent and stable. This is a heavily regulated market that we participate, and we focus on mission-critical and advanced technology products, and I'll talk more about it later on about the future about this segment. As you can see, Sanmina is well diversified within market leaders.

Speaker #2: And I'll talk more about it later on, about the future of this segment. As you can see, Sanmina is well diversified within market leaders.

Speaker #2: Bookings continue to be solid, over 1%. I'm sorry, over 1, I should say. Solid demand on existing business and a strong pipeline of new projects.

Jure Sola: Bookings continues to be solid, over 1%, over 1, I should say. Solid demand on existing business and strong pipeline of new projects. At this time, we're seeing very positive trend across the majority of our focused end markets. To tell you more about it, please turn to slide 16. Now, let me talk to you about more of our end markets, the way we see it today. Overall, it's very positive trend for us as we look at the fiscal year 2026 and beyond. For communication networks and cloud infrastructure, we are well positioned for growth in this segment. For communication segment, we participate mainly in a high density, high performance networks. We see strong demand for high performance switches and enterprise storage. We're also growing and expanding our optical advanced packaging products business.

Bookings continues to be solid, over 1%, over 1, I should say. Solid demand on existing business and strong pipeline of new projects. At this time, we're seeing very positive trend across the majority of our focused end markets. To tell you more about it, please turn to slide 16. Now, let me talk to you about more of our end markets, the way we see it today. Overall, it's very positive trend for us as we look at the fiscal year 2026 and beyond.

Speaker #2: At this time, we're seeing a very positive trend across the majority of our focused end markets. To tell you more about it, please turn to slide 16.

Speaker #2: Now, let me talk to you more about end markets, the way we see it today. Overall, it's a very positive trend for us as we look at fiscal year '26 and beyond.

Speaker #2: For communication networks and cloud infrastructure, we are well positioned for growth in this segment. For the communication segment, we participate mainly in high-density, high-performance networks.

For communication networks and cloud infrastructure, we are well positioned for growth in this segment. For communication segment, we participate mainly in a high density, high performance networks. We see strong demand for high performance switches and enterprise storage. We're also growing and expanding our optical advanced packaging products business.

Speaker #2: We see strong demand for high-performance switches and enterprise storage. We are also growing and expanding our optical advanced packaging products business. We do high-performance network systems from 400, 800 gig, and we are starting to ship 1.6 terabytes.

Jure Sola: We do high performance network systems from 400, 800 gig, and we're starting to ship 1.6 terabytes. For cloud and AI infrastructure, we see a strong demand, strong growth opportunities, and we are well positioned in cloud and AI end market. We see strong pipeline of new projects to drive the growth for second half of calendar year 2026 and calendar year 2027 and beyond. Now, let me talk to you about industrial and energy. For industrial and energy, we have great base of customers. We have strong demand for power products to support AI data centers, and solid demand for safety and surveillance equipment. We see solid new projects in the pipeline to drive future growth. Industrial and energy is a very strong segment for us.

We do high performance network systems from 400, 800 gig, and we're starting to ship 1.6 terabytes. For cloud and AI infrastructure, we see a strong demand, strong growth opportunities, and we are well positioned in cloud and AI end market. We see strong pipeline of new projects to drive the growth for second half of calendar year 2026 and calendar year 2027 and beyond. Now, let me talk to you about industrial and energy. For industrial and energy, we have great base of customers.

Speaker #2: For cloud and AI infrastructure, we see strong demand and strong growth opportunities. And we are well positioned in the cloud and AI end market. We expect—we see a strong pipeline of new projects to drive the growth for the second half of calendar year '26 and calendar year '27 and beyond.

Speaker #2: Now, let me talk to you about Industrial and Energy. For Industrial and Energy, we have a great base of customers. We have strong demand for power products to support AI data centers.

We have strong demand for power products to support AI data centers, and solid demand for safety and surveillance equipment. We see solid new projects in the pipeline to drive future growth. Industrial and energy is a very strong segment for us.

Speaker #2: And solid demand for safety and surveillance equipment. We see solid new projects in the pipeline to drive future growth. Industrial and energy is a very strong segment for us.

Speaker #2: So let me tell you more about our expansion of a new state-of-the-art factory in Houston, Texas, for our energy business. The outlook for electricity demand is very positive.

Jure Sola: So let me tell you more about our expansion of new, new state-of-the-art factory in Houston, Texas, for our energy business. Outlook for electricity demand is very positive. There are several areas for these power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. In energy segments, such as distribution, we're gonna focus on medium voltage transformers. For transmission, we're gonna focus on grid-scale transformers, and for storage, battery storage systems. Here, we basically get involved early stage of product design to full system, and utilizing our vertical integration, such as electronics, machining, fabrication, busbars, et cetera. On this extension, I should say, of this energy business, we've been working for the last couple years. So we made a decision to basically grow this business, because as I said earlier, the outlook for electricity demand is very positive.

So let me tell you more about our expansion of new, new state-of-the-art factory in Houston, Texas, for our energy business. Outlook for electricity demand is very positive. There are several areas for these power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. In energy segments, such as distribution, we're gonna focus on medium voltage transformers. For transmission, we're gonna focus on grid-scale transformers, and for storage, battery storage systems.

Speaker #2: There are several areas for this power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. In energy segments such as distribution, we're going to focus on medium voltage transformers.

Speaker #2: For transmission, we're going to focus on grid-scale transformers. And for storage, battery storage systems. Here, we basically get involved from the early stage of product design to full system.

Here, we basically get involved early stage of product design to full system, and utilizing our vertical integration, such as electronics, machining, fabrication, busbars, et cetera. On this extension, I should say, of this energy business, we've been working for the last couple years. So we made a decision to basically grow this business, because as I said earlier, the outlook for electricity demand is very positive.

Speaker #2: And utilizing our virtual integration, such as electronics, machining, fabrication, bus bars, etc. On this extension, I should say, of this energy business, we've been working for the last couple of years.

Speaker #2: So, we made a decision to basically grow this business because, as I said earlier, the outlook for electricity demand is very positive. For these projects, we partnered with a company called Conchar.

Jure Sola: For these projects, we partnered with a company called Končar, out of Europe, Croatia, to co-design custom medium-voltage transformers for our customers, plus other opportunities for the US market. We have a long-term commitment from our customer. This is a large industry-leading strategic customer for Sanmina. We're ramping up this facility right now, and we are planning to ship a few units in late 2026, and be ready for full production in calendar year 2027. It's an exciting opportunity for our energy business and also for Sanmina. Let me tell you more about the medical. Medical is well diversified within a market that we participate in. We're starting to see a recovery in this medical segment. We expect medical drug delivery devices to grow in fiscal year 2026 and 2027. Overall medical business for us, we see solid opportunities in the pipeline.

For these projects, we partnered with a company called Končar, out of Europe, Croatia, to co-design custom medium-voltage transformers for our customers, plus other opportunities for the US market. We have a long-term commitment from our customer. This is a large industry-leading strategic customer for Sanmina. We're ramping up this facility right now, and we are planning to ship a few units in late 2026, and be ready for full production in calendar year 2027.

Speaker #2: Out of Europe, Croatia. To co-design custom medium voltage transformers for our customers, plus other opportunities for the USA market. We have a long-term commitment from our customer.

Speaker #2: This is a large, industry-leading strategic customer for Sanmina. We are ramping up this facility right now, and we are planning to ship a few units in late 2026 and be ready for full production in calendar year 2027.

Speaker #2: It's an exciting opportunity for our Energy business and also for Sanmina. Let me tell you more about Medical. Medical is well diversified within the market that we participate in.

It's an exciting opportunity for our energy business and also for Sanmina. Let me tell you more about the medical. Medical is well diversified within a market that we participate in. We're starting to see a recovery in this medical segment. We expect medical drug delivery devices to grow in fiscal year 2026 and 2027. Overall medical business for us, we see solid opportunities in the pipeline.

Speaker #2: We're starting to see recovery in this medical segment. We expect medical drug delivery devices to grow in fiscal year '26 and '27. And overall, the medical business for us, we see solid opportunities in the pipeline.

Speaker #2: For defense and aerospace, we continue to see strong demand for the next few years. This segment continues to do well. We see strong opportunities in the pipeline for the next few years.

Jure Sola: For defense and aerospace, we continue to see strong demand for next few years. This segment continues to do well. We see strong opportunities in pipeline for next few years. For our motor and transportation, this business for us, starting to become more stable. We do have a great customer base, and what we see for next year is that we have a new programs that will drive that growth for us. So for industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment, and we expect to see more growth in the second half of fiscal year 2026. Now, please turn to slide 17. Now, let me tell you more about Sanmina ZT Systems AI business. I can tell you that we are executing to the plan. Integration is on track and is doing well.

For defense and aerospace, we continue to see strong demand for next few years. This segment continues to do well. We see strong opportunities in pipeline for next few years. For our motor and transportation, this business for us, starting to become more stable. We do have a great customer base, and what we see for next year is that we have a new programs that will drive that growth for us.

Speaker #2: For our motoring transportation, this business for us is starting to become more stable. We do have a great customer base. And what we see for next year is that we have a new program that will drive that growth for us.

So for industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment, and we expect to see more growth in the second half of fiscal year 2026. Now, please turn to slide 17. Now, let me tell you more about Sanmina ZT Systems AI business. I can tell you that we are executing to the plan. Integration is on track and is doing well.

Speaker #2: So for industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment. And we expect to see more growth in the second half of fiscal year 2026.

Speaker #2: Now, please turn to slide 17. Now, let me tell you more about Sanmina ZT System AI business. I can tell you that we are executing to the plan.

Speaker #2: Integration is on track and is doing well. A good thing about this acquisition: it's immediately accretive to our EPS. ZT system margins are in line with our core Sanmina, as John told you.

Jure Sola: Good thing about this acquisition is, it's immediately accretive to our EPS. ZT Systems margins is in line with our core Sanmina, as John told you. And most important, we do have strong management and technical team in place. So where do we go from here? We expect more growth in the second half of calendar year, driven by new projects. As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next 2 years. And what we see today, the AI opportunities are on track to deliver a $16+ billion in our calendar year 2027. We also pursuing vertical integration opportunities for AI. As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data center at the scale.

Good thing about this acquisition is, it's immediately accretive to our EPS. ZT Systems margins is in line with our core Sanmina, as John told you. And most important, we do have strong management and technical team in place. So where do we go from here? We expect more growth in the second half of calendar year, driven by new projects. As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next 2 years.

Speaker #2: And most important, we do have a strong management and technical team in place. So, where do we go from here? We expect more growth in the second half of the calendar year, driven by new projects.

Speaker #2: As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next two years. And what we see today, the AI opportunities are on track to deliver a $16-plus billion in our calendar year '27.

And what we see today, the AI opportunities are on track to deliver a $16+ billion in our calendar year 2027. We also pursuing vertical integration opportunities for AI. As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data center at the scale.

Speaker #2: We are also pursuing vertical integration opportunities for AI. As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data centers at scale, you can see all the way from design to the full system.

Jure Sola: So you can see all the way from design to the full system. Our capabilities for AI data center are industry-leading. For components, from components and liquid cooling racks, to full system integration at scale. Please turn to slide 18. Let me talk to you about our priorities. Number one, we are focused on our customers as, as we always did. The focus is to continue to broaden and deepen our customer partnership, and we are also adding new market-leading customers to our base. Number two, continue to focus on leadership in technology. Our technology is a competitive advantage in high-technology markets. Our capabilities are in place from design to full system at scale, and we are planning to do more for the future. Number three, how to execute on ZT Systems opportunities. ZT Systems is working on large opportunities for AI data center business, mainly new projects driven.

So you can see all the way from design to the full system. Our capabilities for AI data center are industry-leading. For components, from components and liquid cooling racks, to full system integration at scale. Please turn to slide 18. Let me talk to you about our priorities. Number one, we are focused on our customers as, as we always did. The focus is to continue to broaden and deepen our customer partnership, and we are also adding new market-leading customers to our base.

Speaker #2: Our capabilities for AI data centers are industry-leading. For components, from components and liquid cooling racks, to full system integration at scale. Please turn to slide 18.

Speaker #2: Let me talk to you about our priorities. Number one, we are focused on our customers, as we always did. The focus is to continue to broaden at our customer partnership.

Speaker #2: And we are also adding new, market-leading customers to our base. Number two, continue to focus on leadership in technology. Our technology is a competitive advantage in a high-technology market.

Number two, continue to focus on leadership in technology. Our technology is a competitive advantage in high-technology markets. Our capabilities are in place from design to full system at scale, and we are planning to do more for the future. Number three, how to execute on ZT Systems opportunities. ZT Systems is working on large opportunities for AI data center business, mainly new projects driven.

Speaker #2: Our capabilities are in place from design to full system at scale, and we are planning to do more for the future. Number three, how to execute on ZT system opportunities.

Speaker #2: Systems is working on large ZT opportunities for AI data center business, mainly new projects driven. Sanmina is well positioned. We are investing in AI data centers and continue to expand capacity for the future requirements for fiscal year '27 and '28.

Jure Sola: Sanmina is well positioned. We are investing in AI data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028. And of course, number 4 is to continue to drive profitable and sustainable growth. In Sanmina, we call this building big for the future, while staying true to our core values, focusing on margin expansion, continuing to diversify to higher and sustainable margin business. I can tell you that we are forecasting steady improvements in operating margin. Short term, we're forecasting 5.7 to 6% operating margin, and longer term, we expect to improve those margins from 6 to 7+% . So overall, our strategy is to build bigger and stronger Sanmina for the future and always maximize shareholder value for our investors. Please turn to slide 19. In summary, we are focused on sustainable and profitable growth.

Sanmina is well positioned. We are investing in AI data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028. And of course, number 4 is to continue to drive profitable and sustainable growth. In Sanmina, we call this building big for the future, while staying true to our core values, focusing on margin expansion, continuing to diversify to higher and sustainable margin business. I can tell you that we are forecasting steady improvements in operating margin.

Speaker #2: And, of course, number four is to continue to drive profitable and sustainable growth. In Sanmina, we call this 'building big for the future,' while staying true to our core values.

Speaker #2: Focusing on margin expansion, we continue to diversify to higher and sustainable margin business. I can tell you that we are forecasting steady improvements in operating margin.

Short term, we're forecasting 5.7 to 6% operating margin, and longer term, we expect to improve those margins from 6 to 7+% . So overall, our strategy is to build bigger and stronger Sanmina for the future and always maximize shareholder value for our investors. Please turn to slide 19. In summary, we are focused on sustainable and profitable growth.

Speaker #2: Short term, we are forecasting a 5.7% to 6% operating margin. And longer term, we expect to improve those margins to 6% to 7-plus percent. So overall, our strategy is to build a bigger and stronger Sanmina for the future.

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Q1 2026 Sanmina Corp Earnings Call

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