Plexus (PLXS)
NASDAQ:PLXS
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Plexus
(NASDAQ:PLXS)
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Rating:73Outperform
Price Target:
$279.00
▲(22.03% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by solid fundamentals (improving profitability and conservative leverage) and strong technical momentum (price above key moving averages with positive MACD). Offsetting these strengths are weaker recent cash conversion/free cash flow and a valuation that is only moderate at ~24.7x earnings, despite upbeat, raised FY2026 guidance.
Positive Factors
Conservative leverage
A low TTM debt-to-equity (~0.17) gives Plexus durable financial flexibility to fund program ramps, capex, and working capital needs without high interest burden. This capital structure supports resilience through cyclical demand swings and enables selective reinvestment or buybacks over the next several quarters.
Negative Factors
Weaker cash conversion
Free cash flow has declined materially versus prior years and converts only ~44% of net income in the TTM. With elevated capex guidance and working capital needs for ramping programs, persistently weak cash conversion could constrain discretionary investments, share repurchases and margin recovery over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
A low TTM debt-to-equity (~0.17) gives Plexus durable financial flexibility to fund program ramps, capex, and working capital needs without high interest burden. This capital structure supports resilience through cyclical demand swings and enables selective reinvestment or buybacks over the next several quarters.
Read all positive factors
Plexus (PLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.03B
Dividend YieldN/A
Average Volume (3M)332.88K
Price to Earnings (P/E)27.9
Beta (1Y)1.05
Revenue Growth8.64%
EPS Growth32.91%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)6.98
Shares Outstanding26,786,467
10 Day Avg. Volume308,492
30 Day Avg. Volume332,875
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 Cap1.00
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit16.28
Enterprise Value/Ebitda27.24
Forecast
1Y Price Target
$281.25Price Target Upside23.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.1
Revenue Forecast (FY)$4.69B
Plexus Business Overview & Revenue Model
Company Description
Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply chain, new product introduction, and manufact...
How the Company Makes Money
Plexus primarily makes money by providing outsourced manufacturing and related lifecycle services to OEM customers. Revenue is generated from (1) manufacturing services that include printed circuit board assembly, systems integration, test, and fi...
Plexus Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: robust top-line growth (Q2 revenue +19% YoY), record new program wins ($355M) and an expanding $4B funnel, accompanied by profitability that exceeded guidance and an upgraded FY2026 outlook (mid-teens revenue growth and 6%+ operating margin). Near-term headwinds include increased working capital needs (Q3 cash usage), tightening in specific supply chain commodities, ramp-related margin pressure and higher SG&A/non-operating expenses tied to investments and incentive pay. Overall, the company appears well positioned for sustained growth, with manageable near-term operational and capital demands.Positive Updates
Strong Revenue Growth
Fiscal Q2 revenue of $1.164B, a 19% year-over-year increase and fifth consecutive quarter of sequential revenue growth; Q3 revenue guidance of $1.2B–$1.25B (midpoint ~20% YoY and ~5% sequential growth).
Negative Updates
Working Capital and Near-Term Cash Usage
Company expects higher working capital investments to support accelerating revenue; Q3 cash cycle guidance of 67–71 days and an expected free cash flow usage for Q3 (temporary drawdown versus prior quarter net cash position).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Fiscal Q2 revenue of $1.164B, a 19% year-over-year increase and fifth consecutive quarter of sequential revenue growth; Q3 revenue guidance of $1.2B–$1.25B (midpoint ~20% YoY and ~5% sequential growth).
Read all positive updates
Company Guidance
Plexus guided fiscal Q3 revenue of $1.20–$1.25 billion (midpoint ~+5% sequential, ~+20% year‑over‑year) with non‑GAAP operating margin of 5.9%–6.3% and non‑GAAP EPS of $2.02–$2.18; management expects Q3 gross margin of 9.9%–10.2%, SG&A of $69–$70 million, non‑operating expense of about $5.4 million, and a non‑GAAP tax rate of 16%–18%. For fiscal 2026 the company now targets mid‑teens (or greater) revenue growth, 6%+ non‑GAAP operating margin, $100–$120 million of capital expenditures, and $50–$75 million of free cash flow while managing cash cycle days to the low‑60s by year‑end (expecting 67–71 days in Q3); management also noted double‑digit revenue growth expected across each market sector—particularly aerospace & defense and industrial/semicap—supported by a $4 billion funnel (up 11% sequentially).Plexus Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
80
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.31B | 4.03B | 3.96B | 4.21B | 3.81B | 3.37B |
| Gross Profit | 433.38M | 406.51M | 378.53M | 394.55M | 347.23M | 323.30M |
| EBITDA | 259.04M | 277.42M | 236.25M | 262.31M | 236.85M | 235.68M |
| Net Income | 187.54M | 172.88M | 111.81M | 139.09M | 138.24M | 138.91M |
Balance Sheet | ||||||
| Total Assets | 3.36B | 3.14B | 3.15B | 3.32B | 3.39B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 303.13M | 306.76M | 345.11M | 256.23M | 274.81M | 270.17M |
| Total Debt | 259.92M | 175.46M | 279.59M | 469.61M | 495.38M | 291.32M |
| Total Liabilities | 1.87B | 1.68B | 1.83B | 2.11B | 2.30B | 1.43B |
| Stockholders Equity | 1.49B | 1.45B | 1.32B | 1.21B | 1.10B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 75.79M | 153.97M | 341.32M | 61.77M | -127.85M | 85.48M |
| Operating Cash Flow | 171.98M | 249.23M | 436.50M | 165.82M | -26.24M | 142.58M |
| Investing Cash Flow | -96.54M | -95.61M | -94.95M | -93.30M | -101.56M | -56.97M |
| Financing Cash Flow | -88.53M | -196.40M | -255.59M | -92.72M | 139.29M | -203.88M |
Plexus Technical Analysis
Positive
228.64
Price Trends
203.55
Positive
182.93
Positive
160.57
Positive
Market Momentum
7.88
Negative
64.12
Neutral
73.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLXS, the sentiment is Positive. The current price of 228.64 is above the 20-day moving average (MA) of 212.61, above the 50-day MA of 203.55, and above the 200-day MA of 160.57, indicating a bullish trend. The MACD of 7.88 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 73.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.03B | 27.85 | 12.83% | ― | 8.64% | 32.91% | |
70 Outperform | $11.61B | 18.96 | 10.88% | ― | 44.48% | 8.59% | |
69 Neutral | $724.47M | 82.82 | 8.90% | 1.07% | 11.42% | 5.37% | |
68 Neutral | $4.66B | 28.74 | 16.74% | ― | 6.98% | ― | |
66 Neutral | $930.22M | 93.63 | 9.64% | ― | 0.36% | 1138.56% | |
62 Neutral | $2.98B | 38.49 | 3.10% | 1.44% | 3.53% | -34.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PLXS
Plexus
262.55
136.72
108.65%
BHE
Benchmark Electronics
82.97
48.86
143.22%
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OSIS
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SANM
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Plexus Corporate Events
Executive/Board ChangesShareholder Meetings
Plexus Shareholders Reelect Board and Approve Executive Pay
Positive
Feb 19, 2026
Plexus Corp. held its 2026 Annual Meeting of Shareholders on February 18, 2026, where shareholders elected all 10 board nominees to one-year terms, with each director receiving a strong majority of votes cast and a consistent level of broker non-v...
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.