Plexus (PLXS) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 revenue reached $1.07 billion, up 10% year-over-year, driven by strong program ramps and market share gains in Healthcare/Life Sciences and Aerospace/Defense sectors.

• Non-GAAP EPS was $1.78, at the high end of guidance, and GAAP EPS was $1.51; net income increased 10.5% to $41.2 million.

• Secured 22 new manufacturing program wins, including a record $220 million in annualized Aerospace/Defense revenue.

• Achieved strong program wins and share gains in Healthcare/Life Sciences and Aerospace/Defense, with robust end-market demand.

• Sustainability initiatives included 100% renewable electricity for Penang campus and global charitable donations.

Financial highlights

• Gross margin was 9.9%, stable year-over-year and sequentially, with gross profit at $106.1 million.

• Non-GAAP operating margin reached 5.8%; GAAP operating margin was 5.1%.

• Free cash flow was negative $50.6 million, mainly due to increased inventory and accounts receivable.

• Cash and cash equivalents stood at $249 million, with total debt at $158 million.

• Repurchased $22.4 million in shares, with $62.6 million remaining under the authorization.

Outlook and guidance

• Q2 2026 revenue guidance: $1.11–$1.15 billion, representing 6% sequential and 15% year-over-year growth at midpoint.

• Q2 2026 non-GAAP EPS guidance: $1.80–$1.95; GAAP EPS: $1.53–$1.68.

• Fiscal 2026 revenue growth expected to meet or exceed the high end of the 9%–12% target; free cash flow expectation reaffirmed at ~$100 million.

• Fiscal 2026 capital expenditures estimated at $100–$120 million.

• Annual effective tax rate for fiscal 2026 expected at 16%–18%.