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Plexus reported fiscal fourth-quarter revenue of $1.427 billion, up 34.8% from a year earlier and 4.92% above the consensus. Adjusted earnings per share of $2.84 also exceeded the $2.57 consensus estimate. The company’s revenue was above its own forecast, while gross margin was within its guided range.
Management reported a 50% year-over-year increase in semiconductor capital equipment revenue, citing share gains and customer collaboration. Plexus also said its fourth-quarter manufacturing wins represented $290 million in annualized revenue once fully ramped.
Gross margin rose to 10.2% from 9.90% a year earlier, and operating margin increased to 6.05% from 5.02%. Plexus reported diluted earnings per share of $2.51, compared with $1.87 a year earlier.
Quarterly free cash flow fell to $6.4 million from $97.2 million a year earlier. For fiscal 2026, Plexus reported $68.2 million in operating cash flow and $97.1 million in capital expenditures.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.4 billion | $1.1 billion | 34.8% |
| Diluted EPS | $2.51 | $1.87 | 34.5% |
| Gross margin | 10.2% | 9.90% | 0.3 percentage points |
| Operating margin | 6.05% | 5.02% | 1.0 percentage point |
| Free cash flow | $6.4 million | $97.2 million | −93.4% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.84 | $2.57 | Beat by 10.5% |
| Revenue | $1.4 billion | $1.4 billion | Beat by 4.92% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Gross margin | Q4 FY2026 | 10.0%–10.3% | 10.2% | Within the guide |
| Revenue | Q4 FY2026 | $1.3 billion–$1.4 billion | $1.4 billion | Above the guide |
| Revenue growth | FY2026 | 20.0% | 23.1% | Above the guide |
What management said on the call
Following the fourth-quarter results, Plexus management said demand remained strong and visibility for the next year was reasonable, while taking a conservative approach because of the sector’s cyclicality. Management cited share gains and customer collaboration alongside a 50% year-over-year increase in semiconductor capital equipment revenue.
Management attributed the year-over-year expansion in non-GAAP operating margin to revenue leverage and returns from efficiency investments. Oliver Mihm said new aerospace and defense wins reflected a mix of spending and technology extensions, including new technology entrants and greater engagement with prime contractors, especially in Europe.
On the earlier fiscal third-quarter call, CEO Todd Kelsey said new program launches and strengthening end-market demand had helped Plexus generate $1.305 billion in quarterly revenue. He said the company had secured 31 manufacturing programs representing $255 million in annualized revenue when fully ramped.
Asked about supply constraints, Kelsey said Plexus had accounted for supply-chain tightness in its projections. CFO David Abuhl said the company was working with customers on forecasts and identifying components it needed to secure ahead of time. Kelsey added that customers typically funded inventory placements made jointly with Plexus.
Kelsey also said Plexus was adding capacity at its Penang site and considering when other regions might need expansion. He said the Penang expansion was already underway and would add more than $0.5 billion of capacity, without an expected meaningful impact on margin because it was part of an existing profitable facility.
On demand, investor relations vice president Shawn Harrison said customer acquisitions and earlier share gains supported Plexus’s semiconductor capital equipment outlook. He said the company was also adding customers and technologies in broader industrial markets.
Guidance
Plexus now expects mid- to upper-teens revenue growth in fiscal 2027. On the fiscal third-quarter call, Todd Kelsey said the company saw potential for growth above its 9% to 12% goal.
Plexus has also set a fiscal 2027 non-GAAP operating margin target of 6.5% to 7%. The company expects capital expenditures toward the upper end of its 2% to 3% of revenue range, compared with the range it gave on the third-quarter call.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Revenue | FY2027 | Plexus expects mid- to upper-teens revenue growth in FY2027. | — | — |
| Free cash flow | FY2027 | $100.0 million | $100.0 million | Held |
| Operating margin, non-GAAP | Q1 FY2027 | 6.00%–6.40% | Q4 FY2026: 6.10%–6.50% | Cut |
| EPS, non-GAAP | Q1 FY2027 | $2.46–$2.62 | Q4 FY2026: $2.47–$2.63 | Held |
| EPS, GAAP | Q1 FY2027 | $2.16–$2.32 | — | New |
| Revenue | Q1 FY2027 | $1.4 billion–$1.5 billion | Q4 FY2026: $1.3 billion–$1.4 billion; reported $1.4 billion | Raised |
| Revenue, Defense | FY2027 | Plexus expects exceptional growth in its defense subsector in FY2027. | — | — |
| Revenue growth, Aerospace Defense | FY2027 | 12.0% | — | New |
| Revenue, Aerospace Defense | Q1 FY2027 | Plexus expects aerospace and defense revenue to grow sequentially in Q1 FY2027. | — | — |
| Capex growth, Percent of Revenue | FY2027 | 2.00%–3.00% | — | New |
| Tax rate, non-GAAP | FY2027 | 16.0%–18.0% | — | New |
| Operating margin | FY2027 | Plexus expects operating margin expansion in FY2027. | — | — |
| Revenue growth | FY2027 | 12.0% | — | New |