It has been about a month since the last earnings report for Plexus (PLXS Quick QuotePLXS - Free Report) . Shares have added about 1.4% in that time frame, underperforming 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 latest earnings report in order to get a better handle on the important catalysts.

Plexus' Q3 Earnings Beat Estimates

Plexus 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.

Looking at Quarterly Details

Aerospace/Defense revenues climbed 27.1% 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 42.2% 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 30.4% while EMEA revenues declined 6.6%.

The company’s top 10 customers accounted for 55% of net revenues in the fiscal third quarter.

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%.

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. 

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

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

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 60.95% due to these changes.

VGM Scores

At this time, Plexus has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. 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. It comes with little surprise Plexus has a Zacks Rank #1 (Strong Buy). We expect an above 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 10.8%. The company reported its results for the quarter ended June 2026 more than a month ago.

Sanmina reported revenues of $3.46 billion in the last reported quarter, representing a year-over-year change of +69.7%. EPS of $3.31 for the same period compares with $1.53 a year ago.

Sanmina is expected to post earnings of $3.20 per share for the current quarter, representing a year-over-year change of +91.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Sanmina has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.