It has been about a month since the last earnings report for Plexus (PLXS Quick QuotePLXS - Free Report) . Shares have added about 10.4% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Plexus Corp. before we dive into how investors and analysts have reacted as of late.

Plexus' Q3 Earnings Beat Estimates

Plexus reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.90 compared with the year-ago quarter’s earnings of $1.45. The figure beat the Zacks Consensus Estimate of $1.71 per share. Management expected non-GAAP EPS to be in the band of $1.65-$1.80.

Revenues of $1.018 billion were up nearly 6% year over year but missed the Zacks Consensus Estimate of $1.021 billion. Management expected revenues to be between $1 billion and $1.04 billion. Plexus witnessed increases in revenues across all market sectors.

In the reported quarter, revenues from the Americas increased 2% while EMEA sales declined 14.6%. Revenues from Asia-Pacific jumped 14% to $594 million.

In the fiscal third quarter, Plexus announced 41 manufacturing program wins, which are estimated to contribute $250 million in annualized revenues once fully ramped into production.

Looking at Market Sector Details

Industrial sector’s revenues were up 3% year over year to $415 million, driven by strength in broadband and energy that offset semicap push-outs. This segment contributed 41% to total revenues. Plexus expected the segment to register a low single-digit increase in revenues. Management anticipates current quarter revenues to gain from legacy broadband equipment orders and new program ramps. 

Healthcare/Life Sciences’ revenues were up 10.5% from the year-ago quarter’s levels to $420 million. This contributed 41% to total revenues. For the fiscal third quarter, Plexus expected the
Healthcare Life Sciences sector’s revenues to grow in mid-single digits. Management anticipates the current quarter to gain from ongoing program ramps. 

Revenues from Aerospace/Defense inched up 2.8% year over year to $183 million. This contributed 18% to total revenues. Management guided revenue growth for the Aerospace and Defense sector to be up mid-single digits in the fiscal third quarter. For the fiscal fourth quarter, Plexus expects revenues to be flat, amid growth in the defense subsector. 

Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $412.3 million, $429 million and 180.9 million, respectively. 

The company’s top 10 customers accounted for 48% of net revenues in the fiscal third quarter.

Operating Details

Gross profit on a GAAP basis increased 9.4% year over year to $103.3 million. Gross margin was 10.1%, up from 9.8% year over year. 

Selling and administrative expenses increased 8.1% from the year-ago quarter’s actuals to $49.7 million.

Adjusted operating margin expanded 20 basis points to 6%.

Cash Flow & Balance Sheet Position

As of June 28, 2025, Plexus had cash & cash equivalents worth $237.6 million compared with $310.5 million as of March 29.

Plexus had long-term debt and finance lease obligations, net of the current portion of $92.2 million as of June 28, 2025, compared with $88.8 million as of March 29. 

For the quarter under review, cash flows from operations were $26.9 million. Plexus reported a free cash flow of $13.2 million.

The company repurchased $18.4 million worth of shares at an average price of $128.70 per share under its repurchase program. Plexus added another $100 million to its existing, now fully-utilized, $50 million buyback authorization.

Q4 Outlook

For fourth-quarter fiscal 2025, revenues are anticipated to be between $1.025 billion and $1.065 billion.

Non-GAAP operating margin is expected to be between 5.7% and 6.1%. Non-GAAP EPS is expected to be in the band of $1.82-$1.97.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Plexus has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Plexus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.