NEENAH, WI — Plexus Corp. (NASDAQ: PLXS) announced financial results for fiscal second quarter ended April 4, 2026, and guidance for our fiscal third quarter ending July 4, 2026.
- Reports record fiscal second quarter 2026 revenue of $1.164 billion, GAAP operating margin of 5.3% and GAAP diluted EPS of $1.82.
- Reports fiscal second quarter 2026 non-GAAP operating margin of 6.0% and non-GAAP diluted EPS of $2.05, excluding $0.23 of stock-based compensation expense.
- Initiates fiscal third quarter 2026 revenue guidance of $1.200 billion to $1.250 billion with GAAP diluted EPS of $1.25 to $1.41, including $0.77 of stock-based compensation expense. Fiscal third quarter non-GAAP EPS guidance of $2.02 to $2.18 excludes stock-based compensation expense.
| Three Months Ended | |||||||||
| Apr 4, 2026 | Apr 4, 2026 | Jul 4, 2026 | |||||||
| Q2F26 Results | Q2F26 Guidance | Q3F26 Guidance | |||||||
| Summary GAAP Items | |||||||||
| Revenue (in billions) | $1.164 | $1.110 to $1.150 | $1.200 to $1.250 | ||||||
| Operating margin | 5.3% | 4.9% to 5.3% | 4.1% to 4.5% | ||||||
| Diluted EPS | $1.82 | $1.53 to $1.68 | $1.25 to $1.41 | ||||||
| Summary Non-GAAP Items (1) | |||||||||
| Adjusted operating margin (2) | 6.0% | 5.6% to 6.0% | 5.9% to 6.3% | ||||||
| Adjusted EPS (3) | $2.05 | $1.80 to $1.95 | $2.02 to $2.18 | ||||||
| Return on invested capital (ROIC) | 13.8% | ||||||||
| Economic return | 4.8% | ||||||||
| (1) Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures. | |||||||||
| (2) Excludes stock-based compensation expense of approximately 70 bps for Q2F26 results and Q2F26 guidance and 180 bps for Q3F26 guidance. | |||||||||
| (3)Excludes stock-based compensation expense, net of tax, of $0.23 for Q2F26 results, $0.27 for Q2F26 guidance and $0.77 for Q3F26 guidance. | |||||||||
Fiscal Second Quarter 2026 Information
- Won 30 manufacturing programs during the quarter representing a record $355 million in annualized revenue when fully ramped into production.
- Generated free cash flow of $16.0 million.
- Purchased $20.6 million of our shares at an average price of $189.22 per share under our 2026 Share Repurchase Program, leaving $42.0 million available under our existing $100.0 million authorization.
Todd Kelsey, President and Chief Executive Officer, commented, “Our momentum is accelerating broadly. For the fiscal second quarter, we increased revenue significantly year-over-year, delivered record manufacturing wins, expanded our efficiency efforts and generated robust profitability. We produced record revenue of $1.164 billion, which exceeded our guidance range and increased 19% year-over-year with significant contributions from all market sectors. In addition, non-GAAP operating margin of 6.0% met the high end of guidance, while non-GAAP EPS of $2.05 exceeded guidance.”
Mr. Kelsey added, “Our go-to-market team achieved record quarterly manufacturing wins of $355 million in annualized revenue. This included broad-based programs in aerospace and defense, expanded relationships and share gains in surgical and imaging platforms, a new engagement in data center power solutions and continued share gains in semiconductor capital equipment. While achieving this tremendous wins result, we also expanded our funnel of qualified manufacturing opportunities.”
Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, “Our fiscal second quarter cash cycle of 64 days represented a better-than-expected sequential improvement of 5 days, the benefit of continued progress on working capital initiatives and stronger-than-guided revenue. Our favorable cash cycle combined with our strong operating performance produced a fiscal second quarter return on invested capital of 13.8%, which exceeded our cost of capital by 480 basis points. We also delivered $16 million in free cash flow for the fiscal second quarter, a result that surpassed our projections. We are strategically increasing working capital investments in support of accelerating revenue growth, with an expectation to maintain cash cycle days consistent with our recent performance. As a result, we now expect to generate fiscal 2026 free cash flow in the range of $50 to $75 million.”
Mr. Kelsey continued, “We anticipate continued strong performance for our fiscal third quarter from program ramps, improved end-market demand and our sustained focus on operational efficiency. We are guiding revenue of $1.200 to $1.250 billion, representing 5% sequential and 20% year-over-year growth at the midpoint, non-GAAP operating margin of 5.9% to 6.3% and non-GAAP EPS of $2.02 to $2.18.”
Mr. Kelsey concluded, “Plexus’ consistent focus on redefining excellence through our unmatched quality and delivery is shaping our decision-making and sustaining our tremendous momentum. Leveraging this momentum, and our excellent financial performance year to date, we now expect Plexus to deliver mid-teens or greater fiscal 2026 revenue growth, with robust operating performance.”
| Quarterly Comparison | Three Months Ended | ||||||||||
| (in thousands, except EPS) | Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||
| Revenue | $ | 1,163,757 | $ | 1,069,852 | $ | 980,170 | |||||
| Gross profit | 119,176 | 106,138 | 97,751 | ||||||||
| Operating income | 61,837 | 54,464 | 48,791 | ||||||||
| Net income | 49,809 | 41,182 | 39,073 | ||||||||
| Diluted EPS | $ | 1.82 | $ | 1.51 | $ | 1.41 | |||||
| Gross margin | 10.2% | 9.9% | 10.0 | % | |||||||
| Operating margin | 5.3% | 5.1% | 5.0 | % | |||||||
| ROIC (1) | 13.8% | 13.2% | 13.7 | % | |||||||
| Economic return (1) | 4.8% | 4.2% | 4.8 | % | |||||||
| (1) Refer to Non-GAAP Supplemental Information tables for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating margin, adjusted net income, adjusted diluted EPS, ROIC and economic return. | |||||||||||
Business Segment and Market Sector Revenue
Plexus measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects Plexus’ market sector focused strategy. Top 10 customers comprised 54% of revenue during the second quarter of fiscal 2026. This is up 2 percentage points from the first quarter of fiscal 2026 and up 3 percentage points from the second quarter of fiscal 2025.
| Business Segments ($ in millions) | Three Months Ended | |||||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||
| Americas | $ | 397 | $ | 345 | $ | 295 | ||||||
| Asia-Pacific | 652 | 612 | 587 | |||||||||
| Europe, Middle East and Africa | 116 | 118 | 103 | |||||||||
| Elimination of inter-segment sales | (1) | (5) | (5) | |||||||||
| Total Revenue | $ | 1,164 | $ | 1,070 | $ | 980 | ||||||
| Market Sectors ($ in millions) | Three Months Ended | |||||||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||||
| Aerospace/Defense | $ | 212 | 18% | $ | 178 | 17% | $ | 172 | 18% | |||||
| Healthcare/Life Sciences | 473 | 41% | 466 | 43% | 411 | 42% | ||||||||
| Industrial | 479 | 41% | 426 | 40% | 397 | 40% | ||||||||
| Total Revenue | $ | 1,164 | $ | 1,070 | $ | 980 | ||||||||
Non-GAAP Supplemental Information
Plexus provides non-GAAP supplemental information, such as ROIC, economic return and free cash flow, because such measures are used for internal management goals and decision-making, and because they provide management and investors with additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of non-recurring items that are not reflective of continuing operations. For additional information on non-GAAP measures, please refer to the attached Non-GAAP Supplemental Information tables.
ROIC and Economic Return
ROIC for the second quarter of fiscal 2026 was 13.8%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a three-quarter period for the second fiscal quarter. Invested capital is defined as equity plus debt and operating lease obligations, less cash and cash equivalents. Plexus’ weighted average cost of capital for fiscal 2026 is 9.0%. ROIC for the second quarter of fiscal 2026 less Plexus’ weighted average cost of capital resulted in an economic return of 4.8%.
Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended April 4, 2026, cash flows provided by operations was $28.5 million and capital expenditures were $12.5 million, which resulted in free cash flow of $16.0 million.
| Cash Cycle Days | Three Months Ended | |||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||
| Days in Accounts Receivable | 55 | 58 | 57 | |||||||
| Days in Contract Assets | 12 | 13 | 12 | |||||||
| Days in Inventory | 120 | 124 | 132 | |||||||
| Days in Accounts Payable | (74) | (71) | (70) | |||||||
| Days in Advanced Payments | (49) | (55) | (63) | |||||||
| Annualized Cash Cycle (1) | 64 | 69 | 68 | |||||||
| (1) Plexus calculates cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments. | ||||||||||
Conference Call and Webcast Information
| What: | Plexus Fiscal 2026 Q2 Earnings Conference Call and Webcast |
| When: | Thursday, April 30, 2026 at 8:30 a.m. Eastern Time |
| Where: | Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, plexus.com. Participants can also join utilizing the links below:
Webcast link: |
| Replay: | The webcast will be archived on the Plexus website and will be available as on-demand for 12 months |
