Plexus (PLXS)
NASDAQ:PLXS
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Plexus
(NASDAQ:PLXS)
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Rating:74Outperform
Price Target:
$221.00
▲(1.72% Upside)
Action:ReiteratedDate:02/20/26
PLXS scores well on improving operating performance and a strong, low-leverage balance sheet, supported by positive price momentum and an upbeat earnings outlook with raised/strong guidance signals and sizable program wins. The main offsets are premium valuation (P/E ~30.7) and cash-flow variability, including recent free-cash-flow decline and near-term working-capital/capex pressure.
Positive Factors
Balance Sheet Strength
Very low leverage and a steadily growing equity base reduce financial risk and preserve flexibility. This supports higher capex for automation, share repurchases, and potential M&A while limiting refinancing pressure across economic cycles, strengthening long-term resilience.
Negative Factors
Thin Gross Margins
A ~10% gross margin leaves limited room to absorb cost inflation, commodity swings, or mix shifts. Small adverse moves in input costs or customer mix can disproportionately impact operating profits, making margin path dependent on sustained operational discipline and pricing power.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a steadily growing equity base reduce financial risk and preserve flexibility. This supports higher capex for automation, share repurchases, and potential M&A while limiting refinancing pressure across economic cycles, strengthening long-term resilience.
Read all positive factors
Plexus (PLXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.82B
Dividend YieldN/A
Average Volume (3M)316.13K
Price to Earnings (P/E)24.7
Beta (1Y)1.09
Revenue Growth1.82%
EPS Growth56.52%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.78
Shares Outstanding26,786,467
10 Day Avg. Volume340,558
30 Day Avg. Volume316,131
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 Cap0.92
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit12.95
Enterprise Value/Ebitda20.13
Forecast
1Y Price Target
$208.67Price Target Upside-3.95% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)7.69
Revenue Forecast (FY)$4.52B
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 generates revenue primarily through its electronic manufacturing services, which include product design, prototyping, manufacturing, and supply chain management. The company earns money by charging clients for these services, often on a con...
Plexus Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presents strong positive momentum: above-guidance revenue growth (10% YoY), high-value program wins (notably $220M in Aerospace & Defense), a robust $3.6B opportunity funnel, and reaffirmed free cash flow and margin targets. Near-term challenges include working capital-driven cash usage, inventory increases and seasonal compensation headwinds (50–60 bps), an $8% sequential decline in Industrial revenue, and some supply-chain lead time pressure. Management believes these investments and automation initiatives will drive scalable margin improvement and support the potential to meet or exceed the high end of the 9%–12% fiscal 2026 revenue target. Overall, the positive operational and demand signals materially outweigh the manageable short-term headwinds.Positive Updates
Revenue Growth and Sequential Momentum
Revenue of $1.07 billion in Q1 met the midpoint of guidance and marked the fourth consecutive quarter of sequential growth, representing a 10% year-over-year increase.
Negative Updates
Industrial Sector Weakness
Industrial revenue declined 8% sequentially in Q1; although semicap and industrial equipment are showing ramps, other subsectors remain soft and consolidation of Industrial growth is needed.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Sequential Momentum
Revenue of $1.07 billion in Q1 met the midpoint of guidance and marked the fourth consecutive quarter of sequential growth, representing a 10% year-over-year increase.
Read all positive updates
Company Guidance
Plexus guided Q2 revenue of $1.11–$1.15 billion (midpoint +6% sequential, +15% YoY), non‑GAAP operating margin of 5.6%–6.0%, non‑GAAP EPS $1.80–$1.95, and gross margin of 9.9%–10.2%; SG&A is expected to be $54–$55M (including ~$6.8M stock‑based comp), non‑operating expense ~ $5.3M, an effective tax rate of 16%–18%, and diluted shares of ~27.2M. For fiscal 2026 the company now sees the potential to meet or exceed the high end of its 9%–12% revenue growth goal, is reconfirming approximately $100M of free cash flow, and has raised FY capex to $100–$120M; Q2 cash is expected to be breakeven to slight usage with a cash cycle of 65–69 days (Q1 cash cycle was 69 days). Recent Q1 metrics that inform the guide included revenue $1.07B (10% YoY), non‑GAAP EPS $1.78, operating margin 5.8%, ROIC 13.2%, cash from ops used ~$16M, capex $35M, net cash position with $60M drawn on the revolver, 153k shares repurchased for $22.4M (≈$63M repurchase authority remaining), 22 wins worth $283M of annualized revenue (A&D $220M, Healthcare $40M, Industrial $23M), and a $3.6B qualified manufacturing funnel.Plexus Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.13B | 4.03B | 3.96B | 4.21B | 3.81B | 3.37B |
| Gross Profit | 411.96M | 406.51M | 378.53M | 394.55M | 347.23M | 323.30M |
| EBITDA | 264.88M | 277.42M | 236.25M | 262.31M | 236.85M | 235.68M |
| Net Income | 176.80M | 172.88M | 111.81M | 139.09M | 138.24M | 138.91M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 3.14B | 3.15B | 3.32B | 3.39B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 248.82M | 306.76M | 345.11M | 256.23M | 274.81M | 270.17M |
| Total Debt | 220.57M | 175.46M | 279.59M | 469.61M | 495.38M | 291.32M |
| Total Liabilities | 1.70B | 1.68B | 1.83B | 2.11B | 2.30B | 1.43B |
| Stockholders Equity | 1.48B | 1.45B | 1.32B | 1.21B | 1.10B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 76.28M | 153.97M | 341.32M | 61.77M | -127.85M | 85.48M |
| Operating Cash Flow | 180.21M | 249.23M | 436.50M | 165.82M | -26.24M | 142.58M |
| Investing Cash Flow | -104.26M | -95.61M | -94.95M | -93.30M | -101.56M | -56.97M |
| Financing Cash Flow | -151.63M | -196.40M | -255.59M | -92.72M | 139.29M | -203.88M |
Plexus Technical Analysis
Positive
217.26
Price Trends
194.16
Positive
171.29
Positive
154.16
Positive
Market Momentum
4.19
Negative
67.92
Neutral
87.24
Negative
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 217.26 is above the 20-day moving average (MA) of 196.71, above the 50-day MA of 194.16, and above the 200-day MA of 154.16, indicating a bullish trend. The MACD of 4.19 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.82B | 24.74 | 12.39% | ― | 1.82% | 56.52% | |
68 Neutral | $1.03B | 93.63 | 9.64% | ― | -6.13% | -76.92% | |
68 Neutral | $604.30M | 22.22 | 10.90% | 1.07% | 22.35% | 2.59% | |
68 Neutral | $4.69B | 27.58 | 16.91% | ― | 9.37% | 15.70% | |
66 Neutral | $7.57B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
62 Neutral | $2.11B | 61.39 | 2.25% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PLXS
Plexus
217.26
87.27
67.14%
BHE
Benchmark Electronics
59.03
19.83
50.59%
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19.41
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OSIS
OSI Systems
284.57
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SANM
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138.56
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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.