Sanmina shares surged 13% following second quarter results that significantly exceeded Wall Street expectations, driven by stronger-than-anticipated demand for accelerated compute products from its ZT Systems acquisition.

The integrated manufacturing solutions provider reported adjusted earnings per share of $3.16 for the second quarter ended March 28, beating the analyst consensus of $2.40 by $0.76. Revenue reached $4.01 billion, surpassing estimates of $3.29 billion and representing a substantial increase from $1.98 billion in the same quarter last year.

The company attributed the strong performance to ZT Systems revenue significantly exceeding expectations, with new accelerated compute shipments previously expected in the second half of the year shifting into the second quarter. Core Sanmina business grew 7.3% YoY, in line with expectations.

"We delivered great results for the second quarter. Revenue, non-GAAP operating margin and non-GAAP diluted EPS all exceeded our outlook," stated Jure Sola, Chairman and CEO. "ZT Systems revenue significantly exceeded our expectations, driven by strong execution and customer demand."

For the third quarter, Sanmina issued guidance of $2.55 to $2.85 per share, with a midpoint of $2.70 above the consensus estimate of $2.53. The company expects third quarter revenue between $3.2 billion and $3.5 billion, with a midpoint of $3.35 billion slightly below the $3.52 billion consensus.

For fiscal year 2026, Sanmina raised its outlook, projecting adjusted EPS of $10.75 to $11.35, with a midpoint of $11.05 well above the $10.02 consensus. Full-year revenue guidance of $13.7 billion to $14.3 billion, with a midpoint of $14 billion, also exceeded the $13.72 billion analyst estimate.

The company’s board authorized a new $600 million share repurchase program after exhausting its prior program.