Plexus (PLXS) Q4 2026 Earnings Report

The call was strongly positive. Record revenue, earnings, manufacturing wins, sector growth, operating improvements, ROIC, working-capital efficiency, and the raised fiscal 2027 outlook significantly outweighed the limited challenges, which included materials timing, expected industrial normalization, seasonal first-quarter cash-cycle expansion, and planned investments that temporarily pressure first-quarter margins.

For fiscal first quarter, Plexus is guiding revenue of $1.41 billion to $1.46 billion, representing 1% sequential and 34% year over year growth at the midpoint, non GAAP operating margin of 6.0% to 6.4%, non GAAP EPS of $2.46 to $2.62, gross margin of 9.7% to 10.0%, selling and administrative expense of $61 million to $62 million, a non GAAP effective tax rate of 16% to 18%, and a cash cycle of 66 to 70 days; aerospace and defense revenue is expected to be up high single digits sequentially, healthcare/life sciences revenue growth up low single digits, and industrial revenue down low single digits. For fiscal 2027, Plexus anticipates mid to upper teens revenue growth, a new non GAAP operating margin goal of 6.5% to 7.0%, gross margins of approximately 10.0%, operating flow through at the low end of the 8% to 12% target range, a cash cycle in the low to mid sixties, capital expenditures in the range of 2% to 3.0% of revenue likely toward the upper end, and free cash flow in excess of $100 million; aerospace and defense and industrial revenue growth are expected to exceed 20%, while healthcare/life sciences revenue is expected to grow high single digits exceeding market growth, which Plexus estimates to be mid single digits.