Sanmina: ZT Systems Doubles Revenue, Margins Hold, And The Selloff Is Unjustified

Emmanuel Onwusah549 FollowersFollow5ShareSavePlay(16min)CommentsSummarySanmina Corporation is rated Buy after a 20% post-earnings selloff, driven by guidance optics, not fundamentals.SANM’s ZT Systems acquisition has transformed its revenue mix, with cloud and AI infrastructure now comprising 62% of sales and driving rapid scale.Q1 FY26 revenue surged 59% YoY to $3.19B, with a 6.0% non-GAAP operating margin and $1.4B cash, supporting a robust financial position.Shares trade at a steep discount to peers; a 12-month price target of $185 reflects confidence in integration, margin expansion, and AI infrastructure tailwinds. JHVEPhoto/iStock Editorial via Getty Images Sanmina Corporation (SANM) is in a bit of a bind, in my opinion. It is beating its revenue and EPS estimates comfortably, and yet, the share price fell by 20% after it released Q1 FY26 results in lateThis article was written byEmmanuel Onwusah549 FollowersFollowI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meets narrative. My background is in petroleum and gas engineering, but I moved into finance because I’ve always been drawn to how businesses grow, how markets react, and how data tells stories. I focus on tech, infrastructure, and internet services, with a bias for companies that pair strong fundamentals with real potential.I write here to think in public, share investment ideas, and connect with other investors who care about long-term returns, not just short-term noise. If you enjoy thoughtful breakdowns and real conversation around stocks, you’re in the right place. There’ll be charts, jokes, and hopefully, some profitable ideas.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.