Why is Sanmina stock surging today?

Sanmina Corporation stock surged 21.0% in pre-open trading after the company reported fiscal fourth-quarter 2026 results that significantly exceeded analyst expectations across every major metric, sending shares sharply higher following a period of heavy selling pressure.

Adjusted earnings per share came in at $4.43, beating the Wall Street consensus of $3.27 by $1.16 — a roughly 35% upside surprise — while quarterly revenue of $3.86 billion topped the $3.48 billion estimate by nearly 11%, driven by broad-based strength across all end markets and the successful integration of ZT Systems.

The forward outlook proved equally compelling and served as a powerful secondary catalyst. Management guided fiscal 2027 revenue in the range of $17.5 billion to $19.5 billion and non-GAAP EPS of $15.50 to $17.50, both above prior consensus estimates, with AI systems revenue alone expected to reach $7.5 billion to $9 billion and accelerate in the back half of the year.

For the first quarter of fiscal 2027, the company projected EPS of $3.50 to $3.85 — a midpoint roughly 25% above the $2.95 analyst consensus — and revenue of $3.8 billion to $4.1 billion, well ahead of expectations. JPMorgan, meanwhile, adjusted its price target on the stock today to $230 from $270 while maintaining its Neutral rating, reflecting a recalibration rather than a fresh endorsement.

The broader market provided little directional help, with the S&P 500 up just 0.1%, the Dow Jones gaining 0.3%, and the NASDAQ slipping 0.2%, confirming that today’s move is entirely company-specific. There were no major macro data releases or central bank announcements that materially influenced the tape.

Full fiscal year 2026 results further underscored the company’s transformation: total revenue reached $14.53 billion, up 79% year over year, with cloud and AI infrastructure revenue surging 198% to $9.25 billion, and full-year non-GAAP diluted EPS more than doubling compared to the prior year.

Taken together, a massive earnings beat, a guidance raise that cleared consensus by a wide margin, and a structural growth narrative anchored in AI and cloud infrastructure combined to force a rapid repricing of the stock — particularly notable given that SANM had been under significant selling pressure in recent months, trading well below its 52-week high of $288.68 and having bottomed near its 52-week low of $118.10.