Plexus' Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

Plexus Corp PLXS reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.78 compared with the year-ago quarter’s $1.73. The figure beat the Zacks Consensus Estimate of $1.77 per share. Management expected non-GAAP EPS to be in the band of $1.66-$1.81.

Revenues of $1.07 billion were up nearly 9.6% year over year but marginally missed the Zacks Consensus Estimate of $1.071 billion. Management expected revenues to be between $1.05 billion and $1.09 billion. 

Plexus Corp. Price and EPS Surprise

Plexus Corp. price-eps-surprise | Plexus Corp. Quote

In the reported quarter, revenues from the Americas increased 25.9% to $345 million. Revenues from EMEA and Asia-Pacific increased 16.8% and 0.8%, respectively. 

In the fiscal first quarter, Plexus announced 22 manufacturing program wins, which are estimated to contribute $283 million in annualized revenues once fully ramped into production. 

Management highlighted that program wins, share gains and strengthening market demand position it for meeting/exceeding the high end of 9% to 12% revenue growth target for fiscal 2026.

In the past year, shares have gained 26.1% compared with the Electronics- Manufacturing Services industry’s growth of 101.7%.

Looking at PLXS’ Market Sector Details

Revenues from Aerospace/Defense were up 11.3% year over year and 3% quarter over quarter to $178 million. This segment contributed 17% to total revenues. Management guided for mid-single-digit sequential revenue growth for this sector. For the fiscal second quarter, PLXS expects growth (up mid-single digits) from program ramps and improving demand.
 
Healthcare/Life Sciences’ revenues were up 24.6% year over year and 10% quarter over quarter to $466 million. This contributed 43% to total revenues. PLXS expected the Healthcare Life Sciences sector’s revenues to grow in high single to low double digits sequentially. Management anticipates the current quarter revenues (flat to up low-single digits sequentially) to gain from strength in therapeutics. 

Industrial sector’s revenues were down 3.6% year over year and 8% sequentially to $426 million. This segment contributed 40% to total revenues. PLXS expected the segment to register a high single-digit sequential revenue decrease in the fiscal first quarter. Management anticipates current-quarter revenues (up high-single to low-double digits sequentially) to be driven by market strength and program ramps in semicap and improving industrial equipment demand. 

Our estimates for revenues from the Industrial, Healthcare/Life Sciences and Aerospace/Defense were $426.5 million, $462.2 million and $182.2 million, respectively. 

The company’s top 10 customers accounted for 52% of net revenues in the fiscal first quarter.

Plexus’ Operating Details

Gross profit on a GAAP basis increased 5.4% year over year to $106.2 million. Gross margin was 9.9%, down from 10.3% reported in the year-ago quarter. 

Selling and administrative expenses increased 5.1% from the year-ago quarter’s actuals to $51.7 million.

Adjusted operating margin contracted 20 basis points to 5.8%.

PLXS’ Cash Flow & Balance Sheet Position

As of Jan. 3, 2026, Plexus had cash & cash equivalents worth $248.8 million compared with $306.5 million as of Sept. 27, 2025. 

PLXS had long-term debt and finance lease obligations, net of the current portion of $91.1 million as of Jan. 3, 2026, compared with $91.9 million as of Sept 27, 2025. 

For the quarter under review, cash flows used in operations were $15.4 million. Plexus reported a negative free cash flow of $50.6 million after incurring capital expenditures of $35.2 million. 

The company repurchased $22.4 million worth of shares at an average price of $146.36 per share under its repurchase program. Out of the $100 million authorization, $62.6 million remains available.

Plexus’ Q2 Outlook

For the second-quarter fiscal 2026, revenues are anticipated to be between $1.11 billion and $1.15 billion. 

Non-GAAP operating margin is expected to be between 5.6% and 6%. Non-GAAP EPS is expected to be in the band of $1.80-$1.95.

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 Peers

Jabil Inc JBL reported strong first-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.

Net sales during the quarter increased to $8.3 billion, up from $6.99 billion in the year-ago quarter. The top line beat the consensus estimate of $8.07 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line. The Intelligent Infrastructure contributed 46% of total revenues, up 54% year over year. Healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported net sales.

Over the past year, shares of JBL have gained 49.7%.

Sanmina Corporation. SANM reported first-quarter fiscal 2026 earnings per share of $2.38 compared with $1.44 year over year. Revenues of $3.19 billion beat the Zacks Consensus Estimate by 2.9%. The top line rose 59% year over year. SANM’s gross profit increased 44% year over year to $242.4 million.

Over the past year, shares of SANM have gained 84.3%.

Celestica CLS reported healthy year-over-year revenues backed by robust expansion in the Connectivity & Cloud Solutions ("CCS") segment. Management’s emphasis on innovation, product diversification and AI advancements was a key growth driver. Solid growth in free cash flow was a tailwind.

Non-GAAP net earnings increased to $218.8 million or $1.89 per share from $130.2 million or $1.11 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 15 cents. Quarterly revenues were $3.65 billion, up 44% year over year, led by healthy demand in the CCS segment. The top line exceeded management’s guidance of $3.325 billion to $3.575 billion. 

Over the past year, shares of CLS have gained 243.5%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research