Plexus Corp (NASDAQ:PLXS) Beats Q4 Earnings Estimates and Drives Share Price Higher

Plexus Corp (NASDAQ:PLXS) reported its fiscal fourth-quarter and full-year 2025 financial results, delivering a performance that notably exceeded analyst expectations on profitability, though revenue for the quarter came in slightly below forecasts. The market reacted positively to the news, with shares rising nearly 4.9% in after-hours trading following the announcement.

Earnings and Revenue Versus Estimates

The company's performance against analyst projections presents a mixed but ultimately positive picture, with a significant beat on the bottom line capturing investor attention.

• Q4 2025 Non-GAAP EPS: Reported $2.14 versus an analyst estimate of $1.91.
• Q4 2025 Revenue: Reported $1.058 billion versus an analyst estimate of $1.067 billion.

While revenue was approximately $9 million shy of expectations, the substantial earnings per share beat of $0.23 suggests stronger-than-anticipated operational efficiency and cost management. For the full fiscal year 2025, the company reported revenue of $4.033 billion and a non-GAAP diluted EPS of $7.43.

Management's Forward Outlook

The company provided guidance for the upcoming fiscal first quarter of 2026, which appears cautious when held against existing analyst forecasts for the same period.

• Q1 2026 Revenue Guidance: $1.050 billion to $1.090 billion.
• Q1 2026 Non-GAAP EPS Guidance: $1.66 to $1.81.

This outlook sits below the current analyst consensus, which had estimated Q1 2026 revenue at $1.07 billion and EPS at $1.82. Management's commentary indicated ongoing investments in "talent, technology, facilities and advanced capabilities" to support future growth, which may be tempering near-term profitability expectations.

Key Highlights from the Earnings Report

Beyond the headline earnings and revenue figures, the earnings release highlighted several strong operational and financial achievements for the quarter and the full year.

• New Business Wins: Secured 28 new manufacturing programs in the quarter, representing $274 million in annualized revenue when fully ramped. For the full fiscal year, the company won 141 programs worth $941 million in future annualized revenue.
• Robust Cash Generation: Generated $97 million in free cash flow during the quarter and $154 million for the full fiscal year, which management noted consistently exceeded projections.
• Shareholder Returns: Purchased $21.5 million of its own shares in the fourth quarter at an average price of $134.07.
• Improved Efficiency: Achieved a cash cycle of 63 days, which the company reported as its best result in five years, driven by effective inventory management.
• Strong Returns: Delivered a return on invested capital (ROIC) of 14.6% for the fiscal year, representing an economic return of 5.7% above its weighted average cost of capital.

Market Reaction and Analysis

The positive after-market price movement indicates that investors are rewarding the company for its significant earnings beat and strong operational execution, particularly in cash flow generation and ROIC. The market's focus seems to be on the quality of earnings and the demonstrated operational discipline rather than the slight revenue miss and conservative near-term guidance. The impressive new program wins, which support future revenue growth, likely provide confidence that the company is positioning itself well for the long term, even as it navigates a period of investment.

For a detailed look at historical earnings, future estimates, and analyst projections for Plexus Corp, you can review the data available on its earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.