Plexus Corp (NASDAQ:PLXS) reported its fiscal first quarter 2026 results, delivering a performance that largely met expectations on the top line while providing a modest beat on profitability. The electronic manufacturing services provider posted revenue of $1.07 billion, a figure that came in slightly below the analyst consensus estimate of approximately $1.09 billion. On the earnings front, the company reported non-GAAP diluted earnings per share (EPS) of $1.78, which edged out the average analyst estimate of $1.79.
The market's initial reaction to the report appears muted, with the stock showing little movement in after-hours trading. This neutral response suggests investors had largely priced in the company's in-line performance and are likely focusing more intently on the forward-looking guidance provided for the coming quarter and the remainder of the fiscal year.
Quarterly Performance Versus Estimates
The company's latest quarterly results present a mixed but stable picture when held against Wall Street's expectations. While revenue growth of 10% year-over-year is solid, it fell just short of estimates. The earnings beat, though slight, indicates effective cost management and operational execution during the period.
- Revenue: Reported $1.07 billion vs. Analyst Estimate of ~$1.09 billion.
- Non-GAAP EPS: Reported $1.78 vs. Analyst Estimate of $1.79.
- Key Metric - Operating Margin: GAAP operating margin was 5.1%, while the non-GAAP adjusted operating margin came in at 5.8%.
Forward Guidance and Analyst Expectations
A significant portion of the earnings release was dedicated to the company's outlook, which appears to be a primary driver for investor sentiment. Management provided guidance for the fiscal second quarter ending April 4, 2026, that projects an acceleration in growth.
The company expects Q2 revenue in the range of $1.110 billion to $1.150 billion. The midpoint of this guidance, $1.13 billion, surpasses the current analyst consensus estimate of $1.106 billion for the next quarter. Furthermore, Plexus raised its full-year outlook, stating it now sees the potential to "meet or exceed the high-end of our 9% to 12% revenue growth goal," signaling increased confidence in its business pipeline.
- Q2 Revenue Guidance: $1.110 - $1.150 billion (Midpoint: $1.13 billion).
- Analyst Estimate for Q2 Revenue: ~$1.106 billion.
- Implied Guidance Beat: Company's midpoint guidance is approximately 2.2% above analyst expectations.
Press Release Highlights and Strategic Wins
Beyond the headline numbers, the earnings report contained several positive operational highlights that underscore the company's momentum:
- Strong New Business Wins: The company secured 22 new manufacturing programs during the quarter, representing $283 million in annualized revenue when fully ramped. A record performance in the Aerospace/Defense sector accounted for $220 million of this total.
- Sector Strength: Revenue growth was driven by robust performance in the Healthcare/Life Sciences and Aerospace/Defense market sectors.
- Capital Returns: Plexus continued its share repurchase program, buying back $22.4 million of its stock during the quarter.
- Return on Capital: The company reported a return on invested capital (ROIC) of 13.2%, which management noted was 420 basis points above its weighted average cost of capital.
Market Reaction and Investor Takeaway
The flat after-market price action following the report suggests a balanced view from investors. The slight revenue miss for the past quarter is being counterweighted by stronger-than-expected guidance for the upcoming period. The market seems to be interpreting the results as a confirmation of the company's ongoing trajectory, with the raised full-year outlook potentially offsetting any disappointment from the Q1 revenue figure.
The emphasis on record wins in the high-growth Aerospace/Defense sector and the reaffirmation of approximately $100 million in expected free cash flow for the fiscal year provide tangible reasons for optimism regarding Plexus's ability to execute on its guidance.
For a detailed breakdown of future quarterly estimates and historical earnings performance for Plexus Corp, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
