Sanmina Corp (NASDAQ:SANM) Beats Q3 2025 Revenue and EPS Estimates but Shares Drop on Guidance Concerns

Sanmina Corp (NASDAQ:SANM) Reports Q3 2025 Earnings: Revenue and EPS Beat Estimates, but Market Reaction Turns Negative

Sanmina Corp, a leading provider of integrated manufacturing solutions, reported its third-quarter fiscal 2025 earnings, delivering revenue and earnings per share (EPS) above analyst expectations. However, despite the positive results, the stock faced downward pressure in after-hours trading, signaling investor concerns over future guidance.

Key Earnings Highlights

• Revenue Beat: Sanmina posted Q3 revenue of $2.04 billion, surpassing the consensus estimate of $2.02 billion and marking a 10.9% year-over-year increase.
• EPS Surprise: Non-GAAP earnings per share came in at $1.53, 8.1% higher than the expected $1.445.
• After-Market Reaction: Despite the beat, shares fell nearly 5% in after-hours trading, suggesting investor skepticism about the company’s forward-looking outlook.

Market Reaction and Investor Sentiment

The immediate negative reaction in after-hours trading could be attributed to several factors:

1. Forward Guidance Concerns: While the company did not provide explicit revenue or EPS guidance for Q4 in the press release, analysts’ estimates for the next quarter stand at $2.17 billion in sales, which Sanmina may not be confident in exceeding.
2. Recent Performance Trends: The stock has been relatively flat over the past month, with a slight gain of 1.6%, but has dipped 5.3% over the last two weeks, indicating pre-earnings caution among investors.
3. Broader Sector Sentiment: The electronics manufacturing services industry has faced supply chain and demand fluctuations, which may be weighing on investor confidence despite Sanmina’s solid execution.

Press Release Summary

Sanmina’s earnings release emphasized its continued growth in key markets, including industrial, medical, defense, aerospace, and cloud solutions. The company highlighted strong demand in its Integrated Manufacturing Solutions (IMS) and Components, Products & Services (CPS) segments, which drove the revenue beat. However, the lack of an upward revision in full-year guidance may have contributed to the muted market response.

Looking Ahead

Analysts project full-year 2025 revenue at $8.26 billion, with Q4 sales expected to reach $2.17 billion. Sanmina’s ability to meet or exceed these estimates will be critical in determining whether the post-earnings dip is a temporary setback or a sign of deeper concerns.

For a deeper dive into Sanmina’s earnings estimates and historical performance, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.