Highlights

  • Net sales for the quarter ended July 4, 2026 were $1,304.8 million, compared with $1,018.3 million.
  • Quarterly net income was $43.0 million, or $1.58 per diluted share, and income tax expense was $13.5 million.
  • Management guided fiscal fourth quarter revenue of $1.33 billion to $1.38 billion and non-GAAP EPS of $2.47 to $2.63.
  • Nine-month operating cash flows were $39.0 million, and free cash flow, a non-GAAP measure, was negative $35.3 million.

Plexus Corp. (NASDAQ:PLXS) shares were trading at USD 232.64 on October 28, 2026, up 1.02%, with a relative volume at time of 4.71. The electronics manufacturing services company filed its 10-Q for the fiscal third quarter ended July 4, 2026 on August 6, and management gave fiscal fourth quarter guidance on its August 7 earnings call.

Plexus is incorporated in Wisconsin and lists its principal executive offices in Neenah, Wisconsin. The company partners with customers to design, manufacture and service complex products for the Aerospace/Defense, Healthcare/Life Sciences and Industrial sectors. It reports three geographic segments, AMER, APAC and EMEA. The company described a global team of over 20,000 members across 27 facilities. Its fiscal year ends on the Saturday closest to September 30.

Fiscal Third Quarter 2026 Results

Net sales for the three months ended July 4, 2026 were $1,304.8 million, compared with $1,018.3 million for the three months ended June 28, 2025. Gross profit was $131.4 million, compared with $103.3 million, and gross margin was 10.1% in both periods. Operating income was $61.3 million, compared with $53.6 million, and operating margin was 4.7%, compared with 5.3%.

Net income was $43.0 million, compared with $45.1 million, and diluted earnings per share were $1.58, compared with $1.64. Income tax expense was $13.5 million, compared with $4.7 million, which the company linked to the global minimum tax in several jurisdictions and higher pre-tax book income.

By segment, net sales were $427.7 million in AMER, $773.7 million in APAC and $109.4 million in EMEA, compared with $117.1 million. By market sector, net sales were $232.9 million in Aerospace/Defense, $482.4 million in Healthcare/Life Sciences and $589.5 million in Industrial.

For the nine months ended July 4, 2026, net sales were $3,538.4 million, compared with $2,974.6 million, and net income was $134.0 million, compared with $121.5 million. The nine months included $12.9 million of accelerated stock-based compensation expense related to executive retirement agreements.

Balance Sheet, Cash Flow and Capital

Cash and cash equivalents and restricted cash were $314.6 million as of July 4, 2026, compared with $306.8 million as of September 27, 2025. The company said 95% of its cash and cash equivalents balance was held outside the U.S. by foreign subsidiaries.

Cash flows provided by operating activities were $39.0 million for the nine months, compared with $117.2 million a year earlier. Cash flows provided by financing activities were $42.2 million, including net borrowings on the credit facility of $132.0 million and $64.1 million used to repurchase common stock. Free cash flow was negative $35.3 million, compared with $56.8 million.

Under the 2026 Program, which authorizes repurchases of up to $100.0 million of common stock, the company repurchased 79,707 shares for $20.6 million during the three months ended July 4, 2026. It repurchased 341,799 shares for $63.6 million during the nine months.

Outlook

The 10-Q states that Plexus expects fiscal 2026 capital expenditures of approximately $100.0 million to $120.0 million and an annual effective tax rate of approximately 16.0% to 18.0%, assuming no changes to tax laws.

On the August 7, 2026 earnings call, management guided fiscal fourth quarter revenue of $1.33 billion to $1.38 billion, non-GAAP operating margin of 6.1% to 6.5% and non-GAAP earnings per share of $2.47 to $2.63. It also guided gross margin of 10% to 10.3% and selling and administrative expense of $57.5 million to $58.5 million. Nonoperating expense is anticipated to be approximately $6.3 million.

Management also said it expects fiscal 2026 revenue growth of greater than 20% and a fiscal 2026 non-GAAP operating margin above 6%. It said it would discuss fiscal 2027 expectations on its fiscal fourth quarter call.