Plexus Lifts Non-GAAP Margin Goal After Record Year

The Tip Desk · November 1, 2026 · 3 min read

Fourth-quarter revenue reached $1.427 billion and non-GAAP diluted EPS was $2.84, above the company’s prior guidance.

Plexus Corp. (PLXS), the contract manufacturer of complex medical, aerospace and industrial products, reported fiscal fourth-quarter revenue of $1.427 billion for the three months ended October 3, 2026, up 9.3% from the immediately preceding quarter and 35% from $1.058 billion a year earlier. GAAP diluted earnings were $2.51 a share. Non-GAAP diluted EPS was $2.84 after $0.33 of stock-based compensation.

The company said the results exceeded its fiscal fourth-quarter guidance of $1.330 billion to $1.380 billion in revenue and non-GAAP EPS of $2.47 to $2.63, as the team captured stronger end-market demand and continued to support new program ramps.

GAAP operating margin expanded to 6.0% from 4.7% in the prior quarter, reversing that quarter’s decline from 5.3%. Non-GAAP operating margin widened to 6.7% from 6.3%.

Asia-Pacific revenue increased to $861 million from $774 million. Americas revenue rose to $456 million from $428 million, and Europe, Middle East and Africa revenue was $115 million.

Industrial was the largest market sector at $691 million, or 48% of sales. Healthcare/Life Sciences contributed $512 million, or 36%, and Aerospace/Defense contributed $224 million, or 16%. Healthcare’s share of revenue fell from 37% in the prior quarter.

Plexus won 36 manufacturing programs representing $290 million in annualized revenue when fully ramped, versus 31 programs and $255 million in the prior quarter. Chief Executive Officer Todd Kelsey said each market sector delivered strong performance and secured new customer programs. The qualified-opportunity funnel expanded by $1.2 billion, or 33%, year over year to a record $4.9 billion, from $4.5 billion at the end of the prior quarter.

Top 10 customers comprised 56% of fourth-quarter revenue, up 1 percentage point from the third quarter of fiscal 2026.

Free cash flow was $6.4 million, after a usage of free cash flow in the prior quarter. Cash flows from operations were $29.2 million, less $22.8 million of capital expenditures. The annualized cash cycle held at 62 days, matching the prior quarter. Days in accounts receivable rose to 60 from 56, inventory days to 119 from 116, and accounts payable days to 81 from 76.

Plexus purchased $21.4 million of shares at an average $254.32 a share, completing the $100 million 2026 Share Repurchase Program. The board approved a new $100 million 2027 Share Repurchase Program available to begin fiscal 2027.

For the fiscal year ended October 3, 2026, revenue was $4.965 billion, GAAP operating margin was 5.3% and GAAP diluted EPS was $7.41. Non-GAAP operating margin was 6.2% and non-GAAP diluted EPS was $8.97, excluding $1.56 of stock-based compensation. Return on invested capital was 15.8%, an economic return of 6.8% above a 9.0% weighted average cost of capital. Cash flows from operations were $68.2 million, less $97.1 million of capital expenditures, a usage of free cash flow of $28.9 million.

Chief Financial Officer David Abuhl said the company had consistently exceeded its previous 6% non-GAAP operating margin goal and is introducing a new goal of 6.5% to 7.0%, supported by operational momentum, anticipated revenue leverage and a balanced approach toward investments in growth, people and technology.

Plexus is guiding fiscal first-quarter 2027 revenue of $1.410 billion to $1.460 billion, which the company described as up 1% sequentially and 34% year over year at the midpoint, with non-GAAP operating margin of 6.0% to 6.4% and non-GAAP EPS of $2.46 to $2.62. For fiscal 2027, the company said it now expects mid- to upper-teens revenue growth with increasing operating margin, and it continues to expect to generate at least $100 million in free cash flow.