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Plexus reported Q2 EPS of $2.05, beating estimates, with revenues up 18.7% year over year.
PLXS saw strong growth across the Americas, EMEA and Asia-Pacific, with 30 new program wins.
Plexus raised its fiscal 2026 outlook, expecting mid-teens or greater revenue growth.
Plexus Corp (PLXS - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.05 compared with the year-ago quarter’s $1.66. The figure beat the Zacks Consensus Estimate of $1.87 per share. Management expected non-GAAP EPS to be in the band of $1.80-$1.95.
Revenues of $1.164 billion were up 18.7% year over year and beat the Zacks Consensus Estimate by 3%. Management expected revenues to be between $1.11 billion and $1.15 billion.
In the reported quarter, revenues from the Americas increased 34.6% to $397 million. Revenues from Asia-Pacific and EMEA increased 11% and 12.6%, respectively.
In the fiscal second quarter, Plexus announced 30 manufacturing program wins, which are estimated to contribute $355 million in annualized revenues once fully ramped into production. Apart from traction in Aerospace, Plexus witnessed strong Industrial funnel growth supported by opportunities in automation and robotics, data center and energy verticals.
Management highlighted that record program wins and strengthening market demand now position it to deliver mid-teens or greater revenue growth for fiscal 2026. Earlier, the company guided revenues to meet/exceed the high end of 9% to 12% growth target for fiscal 2026. Non-GAAP operating margin is now expected to be 6% or higher.
Image Source: Zacks Investment Research
Shares are up 1.3% in the pre-market trading session today. In the past year, its shares have gained 101.9% compared with the Electronics- Manufacturing Services industry’s growth of 185%.
Looking at PLXS’ Market Sector Details
Revenues from Aerospace/Defense were up 23.3% year over year and 19% quarter over quarter to $212 million. This segment contributed 18% to total revenues. Management guided for mid-single-digit sequential revenue growth for this sector. For the fiscal third quarter, PLXS expects scaling of new program ramps to drive mid-single digit sequential revenue growth. Fiscal 2026 revenues are now projected to “well exceed 9-12%” target, buoyed by growth in commercial aerospace, space and defense.
Healthcare/Life Sciences’ revenues were up 15.1% year over year and 1% quarter over quarter to $473 million. This contributed nearly 41% to total revenues. PLXS expected the Healthcare Life Sciences sector’s revenues to be flat to up low single digits sequentially. Management anticipates the current quarter revenues to be flat sequentially. For the fiscal year, revenues are expected to exceed the 9-12% target, driven by ongoing and new program ramps
Industrial sector’s revenues were up 20.7% year over year and 12% sequentially to $479 million. This segment contributed 41% to total revenues. PLXS expected the segment to register high single to low double-digit growth sequentially. Management anticipates current-quarter revenues to be up in the low double digits sequentially, driven by the semicap strength and improving industrial market demand. Fiscal 2026 revenues are likely to gain from new program ramps, higher demand and semicap strength, positioning the company to exceed the 9-12% growth target.
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $460.2 million, $482.2 million and $187.7 million, respectively.
The company’s top 10 customers accounted for 54% of net revenues in the fiscal second quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis was up 21.9% year over year to $119.2 million. Gross margin was 10.2%, up from 10% reported in the year-ago quarter.
Selling and administrative expenses increased 17.1% from the year-ago quarter’s actuals to $57.3 million.
Adjusted operating margin expanded 30 basis points to 6%.
PLXS’ Cash Flow & Balance Sheet Position
As of April 4, 2026, Plexus had cash & cash equivalents worth $303.1 million compared with $248.8 million as of Jan. 3.
PLXS had long-term debt and finance lease obligations, net of the current portion of $91 million as of April 4, 2026, compared with $91.1 million as of Jan. 3.
For the quarter under review, cash flows used in operations were $28.5 million. Plexus reported free cash flow of $16 million after incurring capital expenditures of $12.5 million. PLXS remains focused on investments and now projects free cash flow to be in the range of $50-$75 million for fiscal 2026. Earlier, it guided to free cash flow of $100 million.
The company repurchased $20.6 million worth of shares at an average price of $189.22 per share under its repurchase program in the fiscal second quarter. Out of the $100 million authorization, $42 million remains available.
Plexus’ Q3 Outlook
For third-quarter fiscal 2026, revenues are anticipated to be between $1.2 billion and $1.25 billion.
Non-GAAP operating margin is expected to be between 5.9% and 6.3%. Non-GAAP EPS is expected to be in the band of $2.02-$2.18.
Recent Performance of Other Companies in Tech Space
Jabil Inc (JBL - Free Report) reported strong second-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment and healthcare end-markets.
Jabil’s quarterly net sales increased to $8.3 billion from $6.72 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.82 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.
Over the past year, shares of JBL have gained 126.2%.
Sanmina CorporationSANMreported strong second-quarter fiscal 2026 results. Adjusted earnings were $3.16 per share, beating the Zacks Consensus Estimate of $2.42 by 30.58%. Revenues of $4.01 billion topped the consensus mark of $3.27 billion by 22.7%.
Sanmina’ results reflected an outsized contribution from the ZT Systems business, including accelerated compute shipments that moved into the quarter. Revenues surged 102.3% year over year, while earnings jumped 124.1%. Cash flow from operations was $399 million, underscoring strong execution and working-capital discipline.
Over the past year, shares of SANM have gained 165.8%.
Celestica’s (CLS - Free Report) first-quarter 2026 adjusted earnings were $2.16 per share, which surged 80% year over year, and topped the Zacks Consensus Estimate by 3.9%. Revenues climbed 52.8% to $4.047 billion and outpaced the consensus mark by 0.8%.
Momentum in Connectivity & Cloud Solutions (“CCS”) remained the key catalyst. CCS segment revenues rose 76% year over year to $3.24 billion, reflecting accelerating demand from the company’s data center-focused customer base. Celestica generated $356.3 million in cash from operating activities, up from $130.3 million a year ago. Stronger earnings and working-capital dynamics supported the step-up in operating cash flow.
Over the past year, shares of CLS have gained 337.2%.
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Plexus' Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Plexus Corp (PLXS - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.05 compared with the year-ago quarter’s $1.66. The figure beat the Zacks Consensus Estimate of $1.87 per share. Management expected non-GAAP EPS to be in the band of $1.80-$1.95.
Revenues of $1.164 billion were up 18.7% year over year and beat the Zacks Consensus Estimate by 3%. Management expected revenues to be between $1.11 billion and $1.15 billion.
In the reported quarter, revenues from the Americas increased 34.6% to $397 million. Revenues from Asia-Pacific and EMEA increased 11% and 12.6%, respectively.
In the fiscal second quarter, Plexus announced 30 manufacturing program wins, which are estimated to contribute $355 million in annualized revenues once fully ramped into production. Apart from traction in Aerospace, Plexus witnessed strong Industrial funnel growth supported by opportunities in automation and robotics, data center and energy verticals.
Management highlighted that record program wins and strengthening market demand now position it to deliver mid-teens or greater revenue growth for fiscal 2026. Earlier, the company guided revenues to meet/exceed the high end of 9% to 12% growth target for fiscal 2026. Non-GAAP operating margin is now expected to be 6% or higher.
Image Source: Zacks Investment Research
Shares are up 1.3% in the pre-market trading session today. In the past year, its shares have gained 101.9% compared with the Electronics- Manufacturing Services industry’s growth of 185%.
Looking at PLXS’ Market Sector Details
Revenues from Aerospace/Defense were up 23.3% year over year and 19% quarter over quarter to $212 million. This segment contributed 18% to total revenues. Management guided for mid-single-digit sequential revenue growth for this sector. For the fiscal third quarter, PLXS expects scaling of new program ramps to drive mid-single digit sequential revenue growth. Fiscal 2026 revenues are now projected to “well exceed 9-12%” target, buoyed by growth in commercial aerospace, space and defense.
Healthcare/Life Sciences’ revenues were up 15.1% year over year and 1% quarter over quarter to $473 million. This contributed nearly 41% to total revenues. PLXS expected the Healthcare Life Sciences sector’s revenues to be flat to up low single digits sequentially. Management anticipates the current quarter revenues to be flat sequentially. For the fiscal year, revenues are expected to exceed the 9-12% target, driven by ongoing and new program ramps
Industrial sector’s revenues were up 20.7% year over year and 12% sequentially to $479 million. This segment contributed 41% to total revenues. PLXS expected the segment to register high single to low double-digit growth sequentially. Management anticipates current-quarter revenues to be up in the low double digits sequentially, driven by the semicap strength and improving industrial market demand. Fiscal 2026 revenues are likely to gain from new program ramps, higher demand and semicap strength, positioning the company to exceed the 9-12% growth target.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $460.2 million, $482.2 million and $187.7 million, respectively.
The company’s top 10 customers accounted for 54% of net revenues in the fiscal second quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis was up 21.9% year over year to $119.2 million. Gross margin was 10.2%, up from 10% reported in the year-ago quarter.
Selling and administrative expenses increased 17.1% from the year-ago quarter’s actuals to $57.3 million.
Adjusted operating margin expanded 30 basis points to 6%.
PLXS’ Cash Flow & Balance Sheet Position
As of April 4, 2026, Plexus had cash & cash equivalents worth $303.1 million compared with $248.8 million as of Jan. 3.
PLXS had long-term debt and finance lease obligations, net of the current portion of $91 million as of April 4, 2026, compared with $91.1 million as of Jan. 3.
For the quarter under review, cash flows used in operations were $28.5 million. Plexus reported free cash flow of $16 million after incurring capital expenditures of $12.5 million. PLXS remains focused on investments and now projects free cash flow to be in the range of $50-$75 million for fiscal 2026. Earlier, it guided to free cash flow of $100 million.
The company repurchased $20.6 million worth of shares at an average price of $189.22 per share under its repurchase program in the fiscal second quarter. Out of the $100 million authorization, $42 million remains available.
Plexus’ Q3 Outlook
For third-quarter fiscal 2026, revenues are anticipated to be between $1.2 billion and $1.25 billion.
Non-GAAP operating margin is expected to be between 5.9% and 6.3%. Non-GAAP EPS is expected to be in the band of $2.02-$2.18.
Zacks Rank of PLXS
Plexus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies in Tech Space
Jabil Inc (JBL - Free Report) reported strong second-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment and healthcare end-markets.
Jabil’s quarterly net sales increased to $8.3 billion from $6.72 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.82 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.
Over the past year, shares of JBL have gained 126.2%.
Sanmina Corporation SANM reported strong second-quarter fiscal 2026 results. Adjusted earnings were $3.16 per share, beating the Zacks Consensus Estimate of $2.42 by 30.58%. Revenues of $4.01 billion topped the consensus mark of $3.27 billion by 22.7%.
Sanmina’ results reflected an outsized contribution from the ZT Systems business, including accelerated compute shipments that moved into the quarter. Revenues surged 102.3% year over year, while earnings jumped 124.1%. Cash flow from operations was $399 million, underscoring strong execution and working-capital discipline.
Over the past year, shares of SANM have gained 165.8%.
Celestica’s (CLS - Free Report) first-quarter 2026 adjusted earnings were $2.16 per share, which surged 80% year over year, and topped the Zacks Consensus Estimate by 3.9%. Revenues climbed 52.8% to $4.047 billion and outpaced the consensus mark by 0.8%.
Momentum in Connectivity & Cloud Solutions (“CCS”) remained the key catalyst. CCS segment revenues rose 76% year over year to $3.24 billion, reflecting accelerating demand from the company’s data center-focused customer base. Celestica generated $356.3 million in cash from operating activities, up from $130.3 million a year ago. Stronger earnings and working-capital dynamics supported the step-up in operating cash flow.
Over the past year, shares of CLS have gained 337.2%.