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Plexus' fiscal Q3 EPS rose to $2.32 as revenues climbed 28.1% to $1.305 billion, topping estimates.
Industrial revenues surged 41.9% to $589 million, driven by semiconductor demand and program ramps.
Plexus sees Q4 revenues of $1.33-$1.38 billion and EPS of $2.47-$2.63, with 2026 growth above 20%.
Plexus Corp (PLXS - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.32 compared with the year-ago quarter’s $1.90. The figure beat the Zacks Consensus Estimate of $2.10 per share. Management expected non-GAAP EPS to be in the band of $2.02-$2.18.
Revenues increased 28.1% to $1.305 billion and surpassed the consensus mark of $1.228 billion by 6.3%. Management expected revenues to be between $1.2 billion and $1.25 billion. Broad end-market demand, new program ramps and Industrial strength drove the performance.
In the fiscal third quarter, Plexus announced 31 manufacturing program wins, which are estimated to contribute $255 million in annualized revenues once fully ramped into production.
Shares are up 2.3% in the pre-market trading session today. In the past year, shares have gained 88.6% compared with the Electronics- Manufacturing Services industry’s growth of 49%.
Price Performance
Image Source: Zacks Investment Research
Looking at PLXS’ Segment Details
Aerospace/Defense revenues climbed 27.3% year over year and 10% sequentially to $233 million, accounting for 18% of the total. Broad demand and strong operational execution supported revenue growth. Fiscal 2026 revenues are now projected to grow more than 20%, buoyed by defense demand, while fiscal fourth-quarter revenues are expected to be flat.
Healthcare/Life Sciences revenues increased 15% year over year and 2% sequentially to $483 million, contributing 37% of total revenues. Program ramps remained a growth driver. Fiscal 2026 revenues are projected to be in the high teens, while fiscal fourth-quarter revenues are expected to be flat.
Industrial revenues surged 41.9% year over year and 23% sequentially to $589 million. The sector represented 45% of total revenues, up from 41% in both the prior quarter and the year-ago period. Semiconductor capital equipment and broader industrial demand and program ramps supported the growth. Management expects Industrial revenues to rise in the high-single to low-double digits sequentially in the fiscal fourth quarter while overall fiscal 2026 revenues are projected to grow more than 20%.
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $533.1 million, $473 million and $222 million, respectively.
Revenues from the Americas increased 37.2% year over year to $428 million. Asia-Pacific revenues increased 30.3% while EMEA revenues declined 6.8%. The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis was up 27.2% year over year to $131.4 million. Gross margin was 10.1%, unchanged from the year-ago quarter.
Selling and administrative expenses increased 41.1% from the year-ago quarter’s actuals to $70.1 million.
Adjusted operating margin expanded 30 basis points to 6.3%.
PLXS’ Cash Flow & Balance Sheet Position
As of July 4, 2026, Plexus had cash & cash equivalents worth $314.1 million compared with $303.1 million as of April 4.
PLXS had long-term debt and finance lease obligations, net of the current portion of $91.6 million as of July 4, 2026, compared with $91 million as of April 4.
For the quarter under review, cash flows generated from operations were $25.9 million. Plexus reported a free cash outflow of $0.7 million after incurring capital expenditures of $26.6 million.
The company repurchased $20.6 million worth of shares at an average price of $258.75 per share under its repurchase program in the fiscal third quarter. Out of the $100 million authorization, $21.4 million remains available.
PLXS' Q4 Guidance Signals More Growth
For the fiscal fourth quarter, revenues are projected between $1.33 billion and $1.38 billion. At the midpoint, the revenue outlook implies a 4% sequential rise and 28% year-over-year growth.
Non-GAAP EPS is expected to be in the band of $2.47-$2.63, while adjusted operating margin is forecasted in the 6.1-6.5% range.
Management now expects fiscal 2026 revenue growth above 20% and adjusted operating margin greater than 6%. Fiscal 2027 revenue growth is expected to exceed the 9-12% goal, alongside further margin expansion.
The stronger outlook also requires more working capital investments. Management now anticipates fiscal 2026 free cash flow usage. Earlier, Plexus projected free cash flow to be $50-$75 million for fiscal 2026. The company expects to return to meaningful free cash flow generation early in fiscal 2027.
Recent Performance of Other Companies in Tech Space
Jabil Inc (JBL - Free Report) reported third-quarter fiscal 2026 results wherein core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%. Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Jabil’s Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year. Over the past year, shares of JBL have gained 26.8%.
Sanmina Corporation (SANM - Free Report) reported third-quarter fiscal 2026 earnings, wherein non-GAAP EPS stood at $3.31, beating the Zacks Consensus Estimate of $2.78. Revenues of $3.46 billion exceeded the Zacks Consensus Estimate of $3.43 billion. Management added that strong execution across both core Sanmina operations and the ZT Systems business supported expansion. Over the past year, shares of SANM have gained 41.4%.
Celestica’s (CLS - Free Report) second-quarter 2026 adjusted earnings were $2.54 per share, which surged 82.7% year over year, and topped the Zacks Consensus Estimate by 10.9%. Revenues increased 62.4% to $4.7 billion and topped the consensus mark by 8.1%. Momentum in Connectivity & Cloud Solutions remained the key catalyst for Celestica. Over the past year, shares of CLS have gained 61.6%.
View the Zacks #1 Rank List
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Plexus' Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Plexus Corp (PLXS - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.32 compared with the year-ago quarter’s $1.90. The figure beat the Zacks Consensus Estimate of $2.10 per share. Management expected non-GAAP EPS to be in the band of $2.02-$2.18.
Revenues increased 28.1% to $1.305 billion and surpassed the consensus mark of $1.228 billion by 6.3%. Management expected revenues to be between $1.2 billion and $1.25 billion. Broad end-market demand, new program ramps and Industrial strength drove the performance.
Plexus Corp. Price, Consensus and EPS Surprise
Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote
In the fiscal third quarter, Plexus announced 31 manufacturing program wins, which are estimated to contribute $255 million in annualized revenues once fully ramped into production.
Shares are up 2.3% in the pre-market trading session today. In the past year, shares have gained 88.6% compared with the Electronics- Manufacturing Services industry’s growth of 49%.
Price Performance
Image Source: Zacks Investment Research
Looking at PLXS’ Segment Details
Aerospace/Defense revenues climbed 27.3% year over year and 10% sequentially to $233 million, accounting for 18% of the total. Broad demand and strong operational execution supported revenue growth. Fiscal 2026 revenues are now projected to grow more than 20%, buoyed by defense demand, while fiscal fourth-quarter revenues are expected to be flat.
Healthcare/Life Sciences revenues increased 15% year over year and 2% sequentially to $483 million, contributing 37% of total revenues. Program ramps remained a growth driver. Fiscal 2026 revenues are projected to be in the high teens, while fiscal fourth-quarter revenues are expected to be flat.
Industrial revenues surged 41.9% year over year and 23% sequentially to $589 million. The sector represented 45% of total revenues, up from 41% in both the prior quarter and the year-ago period. Semiconductor capital equipment and broader industrial demand and program ramps supported the growth. Management expects Industrial revenues to rise in the high-single to low-double digits sequentially in the fiscal fourth quarter while overall fiscal 2026 revenues are projected to grow more than 20%.
Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $533.1 million, $473 million and $222 million, respectively.
Revenues from the Americas increased 37.2% year over year to $428 million. Asia-Pacific revenues increased 30.3% while EMEA revenues declined 6.8%. The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter.
Plexus’ Operating Details
Gross profit on a GAAP basis was up 27.2% year over year to $131.4 million. Gross margin was 10.1%, unchanged from the year-ago quarter.
Selling and administrative expenses increased 41.1% from the year-ago quarter’s actuals to $70.1 million.
Adjusted operating margin expanded 30 basis points to 6.3%.
PLXS’ Cash Flow & Balance Sheet Position
As of July 4, 2026, Plexus had cash & cash equivalents worth $314.1 million compared with $303.1 million as of April 4.
PLXS had long-term debt and finance lease obligations, net of the current portion of $91.6 million as of July 4, 2026, compared with $91 million as of April 4.
For the quarter under review, cash flows generated from operations were $25.9 million. Plexus reported a free cash outflow of $0.7 million after incurring capital expenditures of $26.6 million.
The company repurchased $20.6 million worth of shares at an average price of $258.75 per share under its repurchase program in the fiscal third quarter. Out of the $100 million authorization, $21.4 million remains available.
PLXS' Q4 Guidance Signals More Growth
For the fiscal fourth quarter, revenues are projected between $1.33 billion and $1.38 billion. At the midpoint, the revenue outlook implies a 4% sequential rise and 28% year-over-year growth.
Non-GAAP EPS is expected to be in the band of $2.47-$2.63, while adjusted operating margin is forecasted in the 6.1-6.5% range.
Management now expects fiscal 2026 revenue growth above 20% and adjusted operating margin greater than 6%. Fiscal 2027 revenue growth is expected to exceed the 9-12% goal, alongside further margin expansion.
The stronger outlook also requires more working capital investments. Management now anticipates fiscal 2026 free cash flow usage. Earlier, Plexus projected free cash flow to be $50-$75 million for fiscal 2026. The company expects to return to meaningful free cash flow generation early in fiscal 2027.
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 third-quarter fiscal 2026 results wherein core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%. Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Jabil’s Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year. Over the past year, shares of JBL have gained 26.8%.
Sanmina Corporation (SANM - Free Report) reported third-quarter fiscal 2026 earnings, wherein non-GAAP EPS stood at $3.31, beating the Zacks Consensus Estimate of $2.78. Revenues of $3.46 billion exceeded the Zacks Consensus Estimate of $3.43 billion. Management added that strong execution across both core Sanmina operations and the ZT Systems business supported expansion. Over the past year, shares of SANM have gained 41.4%.
Celestica’s (CLS - Free Report) second-quarter 2026 adjusted earnings were $2.54 per share, which surged 82.7% year over year, and topped the Zacks Consensus Estimate by 10.9%. Revenues increased 62.4% to $4.7 billion and topped the consensus mark by 8.1%. Momentum in Connectivity & Cloud Solutions remained the key catalyst for Celestica. Over the past year, shares of CLS have gained 61.6%.