Plexus (PLXS) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 revenue reached $1.164 billion, up 19% year-over-year, surpassing guidance with strong contributions from all market sectors.

• Non-GAAP EPS was $2.05, exceeding guidance, with a 6% non-GAAP operating margin; GAAP EPS was $1.82 and GAAP operating margin was 5.3%.

• Achieved record $355 million in new manufacturing program wins, with broad-based sector contributions and expansion of the qualified manufacturing funnel to $3.993 billion.

• Leadership transition: David Abuhl named CFO, succeeding retiring Patrick Jermain; celebrated 40th Nasdaq anniversary and received industry award nominations.

• Net income for Q2 2026 was $49.8 million, up 27.4% year-over-year.

Financial highlights

• Gross margin was 10.2%, at the top end of guidance, with gross profit of $119.2 million.

• Free cash flow was $16 million for Q2 2026, exceeding forecast and rebounding from negative Q1.

• Cash and cash equivalents stood at $303 million at quarter end; ended the quarter in a net cash position.

• Return on invested capital was 13.8%, 480 basis points above WACC.

• Top 10 customers accounted for 54% of revenue, up from 51% in the prior quarter.

Outlook and guidance

• Fiscal Q3 2026 revenue guidance: $1.2–$1.25 billion, up 5% sequentially and 20% year-over-year at midpoint.

• Q3 non-GAAP operating margin expected at 5.9%–6.3%; non-GAAP EPS guidance of $2.02–$2.18.

• Fiscal 2026 revenue growth now expected to be mid-teens or greater, with 6%+ non-GAAP operating margin.

• Fiscal 2026 free cash flow forecasted at $50–$75 million; capex $100–$120 million.

• Fiscal 2026 annual effective tax rate expected between 16.0% and 18.0%.