Sanmina's AI Forecast Reaches Beyond AMD — A Third Platform Could Add More
Management expects the Helios ramp to concentrate growth in the second half of fiscal 2027, with supply shortages complicating execution.
Sanmina, which designs and manufactures electronic components and complete systems, has included an AI platform separate from AMD in its fiscal 2027 forecast, Executive Vice President and Chief Financial Officer John Faust said on the company's earnings call Monday. A third platform remains under negotiation and could bring additional business beyond that forecast.
Beyond The AMD Partnership
“So it's moving beyond AMD,” Faust said in response to a Bank of America analyst. Sanmina announced wins on the second platform on its previous earnings call; those programs are expected to ramp during fiscal 2027.
Sanmina expects fiscal 2027 revenue of $17.5 billion to $19.5 billion, including $7.5 billion to $9 billion from cloud and AI systems. The total revenue midpoint of $18.5 billion represents 27.4% growth from fiscal 2026.
Discussions about the third platform began this past quarter. Faust cautioned: “So first, we've got to get that deal done.” Its prospective revenue, profit and capital spending are outside guidance.
The AMD business itself serves multiple customer groups, including hyperscale operators, frontier AI labs, equipment makers and newer cloud providers, across U.S. and international markets. Management wants diversification across customers, platforms, geographies and other end markets.
Helios Sets The Growth Schedule
Sanmina has begun shipping small quantities of Helios systems. Faust said customer validation was progressing, several operating models were finalized and preliminary production schedules would continue to be refined. Management expects growth to be concentrated in the second half of fiscal 2027 as Helios production increases.
A JPMorgan analyst questioned the breadth of the annual outlook. Faust said complex, large program launches carried risks, with the cloud and AI systems range accounting for $1.5 billion of the overall $2 billion revenue range. Chairman and Chief Executive Officer Jure Sola added that supply shortages were another source of uncertainty.
The ambition has grown since Sanmina announced the ZT Systems acquisition in May 2025. Management initially targeted doubling revenue from about $8 billion to about $16 billion within three years, then shortened the timeline to two years at the start of fiscal 2026.
Sanmina posted fiscal 2026 revenue of $14.53 billion, up 79%. Fourth-quarter revenue was $3.86 billion, up 84%; the core business grew 42% to $2.97 billion, while ZT Systems contributed $884 million. Those results give the broader platform strategy a larger starting base.
Components Add Profit, Not Always Sales
Sanmina's existing capabilities extend beyond final system assembly to circuit boards, cables, metal and plastic parts, memory, storage and manufacturing services. It also serves industrial, medical, defense, aerospace, automotive and communications customers, with operations supporting customers in 20 countries across four continents.
Faust drew a distinction between supplying components internally and selling them to outside customers. Mechanical racks used in Sanmina-built Helios systems can improve profit, but the internal sale is removed from consolidated revenue. Selling those racks to other customers adds revenue.
Management expects adjusted operating margins of 7.0% to 7.5% in fiscal 2027, above its initial 6% to 7% expectation for the combined business. Product mix remains important: greater volume spreads fixed costs, but different businesses carry different margins. Fourth-quarter results also benefited from about $30 million of one-time tariff recoveries, contributing roughly $0.42 to adjusted earnings per share.
Faust confirmed a $450 million fiscal 2027 capital-spending forecast, compared with $404 million in fiscal 2026. Investments in power, liquid cooling and testing capacity are largely complete for the next generation of accelerated computing. He said stronger demand and revenue trending toward $19.5 billion could justify more investment.
The $450 million spending plan supports the current revenue outlook; a third-platform deal would sit outside both plans.
Sources
- Sanmina: Fiscal Q4 Earnings Snapshot | 9news.com — Associated Press
- Sanmina (SANM) Beats Q4 Earnings and Revenue Estimates — Yahoo Finance
- Sanmina Non-GAAP EPS of $4.43 beats by $1.16, revenue of $3.86B beats by $380M (SANM:NASDAQ) | Seeking Alpha — seekingalpha.com
- Can Sanmina's Diversified Medical Portfolio Boost Its Competitive Edge? — Yahoo Finance
- Learn Why The Bull Case For Sanmina (SANM) Could Change Following Strong Quarterly Results — Yahoo Finance
