Key Highlights

  • Fiscal fourth quarter revenue reached USD 1.427 billion, up from USD 1.058 billion and above guidance.
  • Non-GAAP diluted EPS were USD 2.84 against USD 2.14 a year earlier, while GAAP diluted EPS were USD 2.51.
  • Fiscal 2026 revenue totaled USD 4.965 billion, a 23% increase, with return on invested capital of 15.8%.
  • The company introduced a new non-GAAP operating margin goal of 6.5% to 7.0% for the years ahead.

Plexus Corp. (NASDAQ:PLXS) reported revenue of USD 1.427 billion for its fiscal fourth quarter ended October 3, 2026, a 35% increase from USD 1.058 billion a year earlier. The result was above a consensus estimate of USD 1.36 billion and above the company's own guidance range of USD 1.330 billion to USD 1.380 billion. Non-GAAP diluted earnings per share of USD 2.84 were above a consensus estimate of USD 2.55 and the guided range of USD 2.47 to USD 2.63.

GAAP figures were also higher. Diluted EPS rose to USD 2.51 from USD 1.87, and net income reached USD 68.5 million versus USD 51.4 million. GAAP operating margin was 6.0% and non-GAAP operating margin 6.7%, compared with 5.0% and 5.8% a year earlier. The non-GAAP measures exclude USD 0.33 per share of stock-based compensation expense.

Sector Mix, Regions and Cash Position

Industrial revenue rose to USD 691 million from USD 461 million and made up 48% of the quarter, while Healthcare/Life Sciences grew to USD 512 million from USD 424 million and Aerospace/Defense to USD 224 million from USD 173 million. By region, Asia-Pacific revenue climbed to USD 861 million from USD 605 million and the Americas to USD 456 million from USD 336 million, while Europe, Middle East and Africa slipped to USD 115 million from USD 119 million. The ten largest customers accounted for 56% of revenue, up 7 percentage points from a year earlier.

Fiscal 2026 non-GAAP EPS reached USD 8.97, and GAAP EPS USD 7.41. Cash flow was thinner: free cash flow was USD 6.4 million in the fourth quarter and a usage of USD 28.9 million for the year, as inventories grew to USD 1.67 billion from USD 1.23 billion. The company repurchased USD 21.4 million of shares in the quarter, bringing the fiscal year total to USD 85.0 million, and its board approved a further USD 100 million program for fiscal 2027.

Fiscal 2027 Guidance and Management Commentary

For the fiscal first quarter ending January 2, 2027, the company guided to revenue of USD 1.410 billion to USD 1.460 billion, GAAP diluted EPS of USD 2.16 to USD 2.32 and non-GAAP diluted EPS of USD 2.46 to USD 2.62, with non-GAAP operating margin of 6.0% to 6.4%. For fiscal 2027, management anticipates mid- to upper-teens revenue growth with rising operating margin.

President and CEO Todd Kelsey said the quarter reflected stronger end-market demand and new program ramps, and he cited manufacturing wins of USD 290 million in annualized revenue across 36 programs. He also pointed to a qualified opportunity funnel of USD 4.9 billion, up 33%. The company's chief financial officer said fiscal 2027 free cash flow is targeted at no less than USD 100 million, with cash cycle days in the low to mid 60s.

Data Points Behind the Next Report

Four items stand out. The first is the fiscal first quarter guidance, whose revenue midpoint of USD 1.435 billion implies 1% sequential growth. The second is the new 6.5% to 7.0% non-GAAP operating margin goal, set against the 6.2% achieved in fiscal 2026. The third is free cash flow, where the fiscal 2027 target of at least USD 100 million follows a USD 28.9 million usage in fiscal 2026. The fourth is working capital, with a 62-day cash cycle, inventory days at 119 and current debt of USD 179.5 million. An earnings call was scheduled for October 29 at 8:30 a.m. Eastern Time.