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Plexus
(NASDAQ:PLXS)
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Rating:67Neutral
Price Target:
$261.00
▲(8.33% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by solid financial fundamentals (improving growth/profitability and low leverage) and a very positive earnings call with raised guidance and strong demand indicators. These positives are tempered by weak recent cash conversion/FCF consistency, a bearish technical setup (below key moving averages with negative MACD), and a relatively high P/E with no dividend yield provided.
Positive Factors
Strong Revenue Growth and Program Pipeline
Plexus is adding substantial future program revenue while expanding its qualified opportunity funnel. The combination of strong current growth, new customer programs, and end-market wins supports multi-quarter visibility and reduces reliance on a single product cycle.
Negative Factors
Weak and Volatile Recent Cash Conversion
Positive earnings are not currently translating consistently into cash. Working-capital requirements and investment swings can absorb operating cash, limiting funding available for expansion, buybacks, and debt reduction while increasing execution sensitivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth and Program Pipeline
Plexus is adding substantial future program revenue while expanding its qualified opportunity funnel. The combination of strong current growth, new customer programs, and end-market wins supports multi-quarter visibility and reduces reliance on a single product cycle.
Read all positive factors
Plexus (PLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.36B
Dividend YieldN/A
Average Volume (3M)293.32K
Price to Earnings (P/E)34.6
Beta (1Y)1.12
Revenue Growth14.20%
EPS Growth15.36%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)6.92
Shares Outstanding26,652,100
10 Day Avg. Volume234,247
30 Day Avg. Volume293,320
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)2.66
Price to Sales (P/S)0.96
P/FCF Ratio25.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$316.00Price Target Upside31.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.58
Revenue Forecast (FY)$4.86B
Plexus Business Overview & Revenue Model
Company Description
Operating globally across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions, Plexus Corp. and its subsidiaries specialize in delivering advanced electronic manufacturing solutions. The company provides a comprehensive ran...
How the Company Makes Money
Plexus primarily makes money by providing outsourced manufacturing and related services to original equipment manufacturers (OEMs) and other product companies. Revenue is largely generated from contract manufacturing programs where Plexus builds c...
Plexus Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall: Plexus reported record quarterly revenue (+28% YoY), delivered improved operating margin and an EPS beat, announced substantial new program wins and a record $4.5 billion funnel, and showed marked working capital improvements (62-day cash cycle, 14.9% ROIC). Management provided bullish guidance for fiscal Q4 and fiscal 2026 (revenue growth >20%) and signaled potential for continued margin expansion and strong free cash flow in fiscal 2027. Key near-term concerns include supply-chain-driven inventory preplacement that pressures working capital (leading to a Q4 free cash flow breakeven/slight usage), rising interest/non-operating expense, and expected moderation in Healthcare growth and incomplete recovery in commercial aerospace. Overall, the positive operational momentum, sizable wins funnel and improved capital efficiency outweigh the manageable near-term headwinds.Positive Updates
Record Revenue and Strong Top-Line Growth
Fiscal Q3 revenue of $1.305 billion, a 28% year-over-year increase and a 12% sequential increase; Q3 revenue exceeded guidance and company now expects fiscal 2026 revenue growth in excess of 20% with potential fiscal 2027 growth above the 9%–12% target.
Negative Updates
Near-Term Free Cash Flow Pressure
Company now forecasts fiscal Q4 free cash flow to be breakeven or a slight cash usage due to timing of working capital investments, though meaningful free cash flow in excess of $100 million is expected for fiscal 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Fiscal Q3 revenue of $1.305 billion, a 28% year-over-year increase and a 12% sequential increase; Q3 revenue exceeded guidance and company now expects fiscal 2026 revenue growth in excess of 20% with potential fiscal 2027 growth above the 9%–12% target.
Read all positive updates
Company Guidance
Plexus guided fiscal Q4 revenue of $1.33–$1.38 billion (midpoint +4% sequential, +28% year‑over‑year) with non‑GAAP operating margin of 6.1%–6.5% and non‑GAAP EPS of $2.47–$2.63; gross margin is expected at 10.0%–10.3%, selling & administrative expense $57.5–$58.5 million, non‑operating expense ~ $6.3 million and a non‑GAAP tax rate of 12%–14%. For fiscal 2026 management now expects revenue growth in excess of 20%, non‑GAAP operating margin >6%, capital expenditures of $100–$120 million, a full‑year tax rate of 15%–17% and end‑of‑year cash‑cycle days in the low‑to‑mid‑60s (Q3 cash cycle was 62 days). They expect fiscal Q4 free cash flow to be breakeven to a slight usage and a return to meaningful FCF in fiscal 2027 (>$100M) while keeping 2027 capex around 2%–3% of revenue and targeting fiscal 2027 revenue growth above their 9%–12% goal with further operating‑margin expansion. Supporting metrics from Q3: revenue $1.305B (+12% seq, +28% YoY), non‑GAAP operating margin 6.3%, non‑GAAP EPS $2.32, cash from operations $25.9M, capex $26.6M (FCF ~‑$1M), ROIC 14.9% (590 bps above WACC), a record $4.5B funnel (+12% seq, +23% YoY), 31 new programs ($255M annualized) and $20.6M of buybacks in the quarter (≈$21M remaining authorization).Plexus Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.60B | 4.03B | 3.96B | 4.21B | 3.81B | 3.37B |
| Gross Profit | 461.48M | 406.51M | 378.53M | 394.55M | 347.23M | 323.30M |
| EBITDA | 248.92M | 277.42M | 236.25M | 262.31M | 236.85M | 235.68M |
| Net Income | 185.41M | 172.88M | 111.81M | 139.09M | 138.24M | 138.91M |
Balance Sheet | ||||||
| Total Assets | 3.63B | 3.14B | 3.15B | 3.32B | 3.39B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 314.05M | 306.76M | 345.11M | 256.23M | 274.81M | 270.17M |
| Total Debt | 299.35M | 175.46M | 279.59M | 469.61M | 495.38M | 291.32M |
| Total Liabilities | 2.10B | 1.68B | 1.83B | 2.11B | 2.30B | 1.43B |
| Stockholders Equity | 1.53B | 1.45B | 1.32B | 1.21B | 1.10B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 61.87M | 153.97M | 341.32M | 61.77M | -127.85M | 85.48M |
| Operating Cash Flow | 171.01M | 249.23M | 436.50M | 165.82M | -26.24M | 142.58M |
| Investing Cash Flow | -109.33M | -95.61M | -94.95M | -93.30M | -101.56M | -56.97M |
| Financing Cash Flow | 14.07M | -196.40M | -255.59M | -92.72M | 139.29M | -203.88M |
Plexus Technical Analysis
Negative
240.94
Price Trends
261.61
Negative
262.32
Negative
219.97
Positive
Market Momentum
-6.61
Positive
38.22
Neutral
30.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLXS, the sentiment is Negative. The current price of 240.94 is below the 20-day moving average (MA) of 254.80, below the 50-day MA of 261.61, and above the 200-day MA of 219.97, indicating a neutral trend. The MACD of -6.61 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLXS.
Plexus Risk Analysis
Plexus disclosed 21 risk factors in its most recent earnings report. Plexus reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Plexus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $720.30M | 28.72 | 7.51% | 0.86% | 20.23% | -15.15% | |
68 Neutral | $2.53B | 47.73 | 4.81% | 0.84% | 8.87% | 39.10% | |
68 Neutral | $3.32B | 22.38 | 17.59% | ― | 4.25% | 4.70% | |
67 Neutral | $6.36B | 34.58 | 12.46% | ― | 14.20% | 15.36% | |
65 Neutral | $935.20M | 19.28 | 15.98% | ― | 14.00% | 308.50% | |
63 Neutral | $10.04B | 32.92 | 12.57% | ― | 58.56% | 19.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PLXS
Plexus
239.29
104.33
77.30%
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Plexus Corporate Events
Business Operations and StrategyStock Buyback
Plexus Announces New $100 Million Share Repurchase Plan
Positive
Aug 24, 2026
On August 20, 2026, Plexus Corp.’s Board of Directors approved a new share repurchase program authorizing the company to buy back up to $100.0 million of its common stock once its current $100.0 million program expires. As of August 19, 2026...
Business Operations and StrategyPrivate Placements and Financing
Plexus Expands Revolving Credit Facility to Support Growth
Positive
Jun 8, 2026
On June 5, 2026, Plexus Corp. entered into a Second Amended and Restated Credit Agreement that fully replaces its June 9, 2022 facility, establishing a revolving credit line maturing on June 5, 2031, with a maximum commitment of $500 million that ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.