Plexus Corp. (NASDAQ: PLXS) delivered impressive financial results for its fiscal third quarter ended July 4, 2026, showcasing a remarkable year-over-year revenue increase alongside sound operational performance. The company reported a record revenue of $1.305 billion, a significant boost attributed to strengthening market demand and successful new program launches.

1. Financial Highlights

Record Revenue: Plexus achieved a fiscal third quarter revenue of $1.305 billion, representing a 28% increase year-over-year and a 12% increase from the previous quarter.

Profitability Metrics: The company reported a GAAP operating margin of 4.7% and a GAAP diluted earnings per share (EPS) of $1.58. On a non-GAAP basis, Plexus recorded an operating margin of 6.3% with a diluted EPS of $2.32, excluding $0.74 of stock-based compensation expenses.

Guidance for Q4 2026: For the fiscal fourth quarter ending October 3, 2026, Plexus anticipates revenue between $1.330 billion and $1.380 billion, with GAAP diluted EPS projected between $2.18 and $2.34, including $0.29 of stock-based compensation expense. Non-GAAP EPS is expected to range from $2.47 to $2.63.

2. Strategic Wins and Market Performance

During the third quarter, Plexus won 31 manufacturing programs expected to generate an annualized revenue of $255 million once fully ramped up. Notable wins were reported in the Aerospace/Defense sector and a new partnership in the Industrial sector for manufacturing a battery energy storage system aimed at data centers.

Todd Kelsey, President and CEO, expressed optimism about the company's performance, stating, “Our go-to-market team continued to drive strong performance with quarterly manufacturing wins and expanded our funnel of qualified manufacturing opportunities to a record $4.5 billion.”

3. Operational Efficiency and Cash Flow

The fiscal third quarter also marked a significant improvement in Plexus' operational efficiency. The company achieved a cash cycle of 62 days, the best quarterly performance in over five years. This was complemented by a return on invested capital (ROIC) of 14.9%, marking an increase of 110 basis points from the prior quarter and 590 basis points above the company's cost of capital.

David Abuhl, Senior Vice President and Chief Financial Officer, noted, “While we expect to maintain cash cycle days in the low-to-mid 60s for the fiscal fourth quarter, further working capital investments are required to support our substantial revenue growth projections.”

Despite a slight usage of free cash flow in the quarter, Plexus anticipates returning to meaningful free cash flow generation in early fiscal 2027.

4. Outlook for Fiscal 2026 and Beyond

Looking ahead, Plexus is targeting over 20% revenue growth for fiscal 2026, driven by successful program launches and market share gains. The company aims to continue this momentum into fiscal 2027, forecasting revenue growth exceeding its previous goal of 9% to 12%.

Kelsey concluded, “Our differentiated value proposition, focused on providing unmatched quality and delivery, is resulting in robust performance for fiscal 2026 and positions Plexus for sustained, long-term momentum.”

5. Conclusion

Plexus Corp.'s third-quarter results not only reflect strong financial performance but also highlight the company's strategic positioning to capitalize on market opportunities across various sectors. As Plexus continues to innovate and expand its operational capabilities, it remains well-positioned for future growth and shareholder value creation.

For those interested in further details, Plexus will hold a conference call on July 30, 2026, at 8:30 a.m. Eastern Time to discuss these results and provide additional insights into the company's strategy and outlook.

Original press release