tiprankstipranks
Plexus (PLXS)
NASDAQ:PLXS
Want to see PLXS full AI Analyst Report?

Plexus (PLXS) AI Stock Analysis

182 Followers

Top Page

PLXS

Plexus

(NASDAQ:PLXS)

Select Model
Select Model
Select Model
Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$275.00
▲(8.08% Upside)
Action:Reiterated
Date:08/03/26
PLXS scores well on fundamentals (improving growth, healthy profitability, and a conservative balance sheet) and is supported by a strong, upbeat earnings call with raised/robust guidance. The score is held back by weaker recent free cash flow conversion, a softer near-term technical setup (below 20/50-day averages), and a relatively high P/E without a dividend yield.
Positive Factors
Diversified end‑market exposure (Healthcare, Industrial, Aerospace & Defense)
Serving healthcare, industrial and aerospace & defense reduces single‑market cyclicality and creates multiple secular growth levers. Strength in defense, industrial and semi cap end markets provides durable program pipelines, smoothing revenue through cycles and enabling cross‑sell of engineering and aftermarket services.
Negative Factors
Weaker and variable free cash flow conversion
Volatile FCF and poorer conversion versus prior years reflects working‑capital swings and inventory preplacement. Inconsistent cash generation can constrain buybacks, M&A, or reinvestment, and makes financing dependent on credit availability during program ramp periods or component tightness.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end‑market exposure (Healthcare, Industrial, Aerospace & Defense)
Serving healthcare, industrial and aerospace & defense reduces single‑market cyclicality and creates multiple secular growth levers. Strength in defense, industrial and semi cap end markets provides durable program pipelines, smoothing revenue through cycles and enabling cross‑sell of engineering and aftermarket services.
Read all positive factors

Plexus (PLXS) vs. SPDR S&P 500 ETF (SPY)

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
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
Solid overall fundamentals: revenue growth has re-accelerated (TTM +6.6%) and profitability is steady-to-improving (TTM net margin ~4.35%). Balance sheet strength is a major plus with low leverage (debt-to-equity ~0.18) and healthy ROE (~12.5%), though total debt rose from 2025 to TTM. The main drag is weaker and more variable cash conversion: TTM free cash flow (~$62M) is down versus prior periods and is only ~44% of net income.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
55
Neutral
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue4.60B4.03B3.96B4.21B3.81B3.37B
Gross Profit461.48M406.51M378.53M394.55M347.23M323.30M
EBITDA248.92M277.42M236.25M262.31M236.85M235.68M
Net Income185.41M172.88M111.81M139.09M138.24M138.91M
Balance Sheet
Total Assets3.63B3.14B3.15B3.32B3.39B2.46B
Cash, Cash Equivalents and Short-Term Investments314.05M306.76M345.11M256.23M274.81M270.17M
Total Debt299.35M175.46M279.59M469.61M495.38M291.32M
Total Liabilities2.10B1.68B1.83B2.11B2.30B1.43B
Stockholders Equity1.53B1.45B1.32B1.21B1.10B1.03B
Cash Flow
Free Cash Flow61.87M153.97M341.32M61.77M-127.85M85.48M
Operating Cash Flow171.01M249.23M436.50M165.82M-26.24M142.58M
Investing Cash Flow-109.33M-95.61M-94.95M-93.30M-101.56M-56.97M
Financing Cash Flow14.07M-196.40M-255.59M-92.72M139.29M-203.88M

Plexus Technical Analysis

Technical Analysis Sentiment
Positive
Last Price254.45
Price Trends
50DMA
272.74
Negative
100DMA
254.36
Positive
200DMA
210.80
Positive
Market Momentum
MACD
-0.71
Negative
RSI
54.34
Neutral
STOCH
69.13
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 254.45 is below the 20-day moving average (MA) of 257.50, below the 50-day MA of 272.74, and above the 200-day MA of 210.80, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$955.01M21.2115.49%10.87%
69
Neutral
$6.72B36.3212.46%14.20%15.36%
68
Neutral
$2.87B53.904.81%0.84%8.87%39.10%
68
Neutral
$858.70M30.258.90%0.86%11.42%5.37%
63
Neutral
$9.95B32.5512.57%58.56%19.37%
62
Neutral
$3.65B24.6016.74%6.98%8.41%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PLXS
Plexus
270.35
140.72
108.56%
BHE
Benchmark Electronics
82.36
44.45
117.25%
DAKT
Daktronics
21.43
4.43
26.06%
LYTS
Lsi Industries
25.17
6.99
38.45%
OSIS
OSI Systems
236.23
10.29
4.55%
SANM
Sanmina-Sci
202.73
81.48
67.20%

Plexus Corporate Events

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.Date of analysis: Aug 03, 2026