Sanmina Stock Plunges 20% Despite Strong Earnings Beat as Revenue Guidance Disappoints Investors Today
Sanmina Corp (SANM) shares fell 20.5% to $166.15 after the company reported fiscal Q3 2026 earnings of $3.31 per share, above estimates of $2.83, and revenue of $3.46B. Investors reacted to next-quarter revenue guidance missing expectations. Sanmina raised full-year EPS guidance to $11.90-$12.20.
How this was made
The 30-second read
Why it matters
Despite strong reported quarter performance and raised full-year EPS guidance, the market focused on the next-quarter revenue guidance shortfall, triggering a sharp selloff and likely shifting attention to whether sales growth materializes in coming quarters.
Market read
Traders should treat this as a guidance-driven repricing event: near-term revenue visibility is now the key variable, even with profitability strength and higher full-year EPS guidance.
What to watch
The article notes strong year-on-year sales growth guidance (64.6%) and raised full-year EPS range, which may support a rebound if investors were over-discounting the revenue shortfall.
Background
Sanmina reported fiscal Q3 2026 results on Monday, July 27, with EPS and revenue beats, then provided updated guidance that included a next-quarter revenue outlook below expectations.
Ticker impact
Sanmina shares plunged about 20% after its fiscal Q3 earnings beat, but next-quarter revenue guidance missed expectations.
Bearish near-term bias with elevated volatility until investors gain confidence that sales growth catches up to the earnings trajectory.
The article attributes the selloff specifically to revenue guidance shortfall for the coming quarter, even while EPS and revenue for Q3 beat consensus and full-year EPS guidance was raised.
Market effects
Signals that electronics manufacturing investors are prioritizing near-term revenue visibility over EPS beats, which can pressure sector multiples on similar guidance.
Primarily US large-cap sentiment, with potential spillover to other EMS/contract manufacturing names via read-across on guidance sensitivity.
Limited direct global impact, but it reinforces global supply-chain and demand uncertainty reflected in revenue outlooks.
Counterpoint
The company raised full-year EPS guidance, so the revenue miss may be timing-related; the stock could mean-revert if subsequent quarters validate the earnings outlook.
Key entities
- companySanmina Corporation
Electronics manufacturing services provider whose stock fell ~20% after earnings beat but revenue guidance disappointed.
- insiderJonathan P. Faust
CFO who sold 10,076 shares on May 29 under a Rule 10b5-1 plan, cited as part of pre-earnings insider activity.
