A month has gone by since the last earnings report for Plexus (PLXS Quick QuotePLXS - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Plexus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Plexus' Q2 Earnings Beat Estimates

Plexus 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 data center, automation and robotics 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.

Looking at 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, Plexus 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. Plexus 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. Plexus 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.

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%.

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. 

Long-term debt and finance lease obligations, net of the current portion, were $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. The company 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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted -24.06% due to these changes.

VGM Scores

Currently, Plexus has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Plexus has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Plexus is part of the Zacks Electronics - Manufacturing Services industry. Over the past month, Sanmina (SANM Quick QuoteSANM - Free Report) , a stock from the same industry, has gained 20.9%. The company reported its results for the quarter ended March 2026 more than a month ago.

Sanmina reported revenues of $4.01 billion in the last reported quarter, representing a year-over-year change of +102.3%. EPS of $3.16 for the same period compares with $1.41 a year ago.

Sanmina is expected to post earnings of $2.78 per share for the current quarter, representing a year-over-year change of +81.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Sanmina has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.