Plexus delivered a quarter that met Wall Street’s revenue expectations and exceeded consensus for non-GAAP earnings per share, prompting a positive market reaction. Management attributed the performance to strong program ramps across Healthcare/Life Sciences and Aerospace and Defense sectors, as well as improved demand in semiconductors and energy markets. CEO Todd Kelsey highlighted, "Our consistent strategy and focus on delivering customer success continues to enable share gains and is facilitating our leadership in growth markets." The company also benefited from operational improvements in its global facilities, helping offset investment costs tied to new capacity.
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Plexus (PLXS) Q4 CY2025 Highlights:
- Revenue: $1.07 billion vs analyst estimates of $1.07 billion (9.6% year-on-year growth, in line)
- Adjusted EPS: $1.78 vs analyst estimates of $1.76 (1.4% beat)
- Adjusted EBITDA: $81.03 million vs analyst estimates of $80.33 million (7.6% margin, 0.9% beat)
- Revenue Guidance for Q1 CY2026 is $1.13 billion at the midpoint, above analyst estimates of $1.09 billion
- Adjusted EPS guidance for Q1 CY2026 is $1.88 at the midpoint, above analyst estimates of $1.78
- Operating Margin: 5.1%, in line with the same quarter last year
- Market Capitalization: $5.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Plexus’s Q4 Earnings Call
- David Williams (Benchmark) asked what is driving the step-up in growth, to which CEO Todd Kelsey attributed both larger program wins and improved end-market demand, particularly in Healthcare and semicap.
- James Ricchiuti (Needham & Company) inquired about the nature of Aerospace and Defense demand, with COO Oliver Mihm specifying that while defense remains strong, commercial aerospace growth is modest and full pull-through from large OEMs like Boeing is not yet realized.
- Melissa Fairbanks (Raymond James) questioned whether tightening supply chain lead times were impacting working capital or program execution. Mihm and Kelsey explained they are proactively managing inventory and leveraging improved planning systems to minimize disruptions.
- Unknown Analyst (KeyBanc Capital Markets) asked about semicap sector growth and the impact of automation initiatives. Mihm responded that while it is early days, demand is ramping quickly and automation is delivering efficiency and capital savings.
- Anja Soderstrom (Sidoti) requested specifics on margin headwinds from seasonal compensation and facility ramp costs. CFO Patrick Jermain quantified the impact and emphasized that productivity improvements and revenue leverage are offsetting these headwinds.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace and breadth of program ramps in Aerospace and Defense and Healthcare/Life Sciences, (2) the impact of automation and AI initiatives on productivity and operating margins, and (3) the company’s ability to navigate supply chain pressures and working capital demands. Progress in these areas will signal whether Plexus can achieve its upgraded growth and profitability targets.
Plexus currently trades at $204.05, up from $180.85 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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