Plexus delivered first quarter results that exceeded Wall Street’s expectations, driven by broad-based revenue growth across its key market sectors. Management attributed the strong quarter to a combination of new program ramps, ongoing market share gains, and rising end market demand—especially in aerospace and defense, as well as semiconductor capital equipment. CEO Todd Kelsey highlighted the contribution of a record $355 million in new manufacturing program wins and emphasized that operational discipline supported both margin expansion and working capital efficiency. The company also marked several organizational milestones, including a CFO transition and the 40th anniversary of its NASDAQ listing.
Is now the time to buy PLXS? Find out in our full research report (it’s free for active Edge members).
Plexus (PLXS) Q1 CY2026 Highlights:
- Revenue: $1.16 billion vs analyst estimates of $1.13 billion (18.7% year-on-year growth, 2.9% beat)
- Adjusted EPS: $2.05 vs analyst estimates of $1.88 (8.8% beat)
- Adjusted EBITDA: $89.02 million vs analyst estimates of $85.3 million (7.6% margin, 4.4% beat)
- Revenue Guidance for Q2 CY2026 is $1.23 billion at the midpoint, above analyst estimates of $1.15 billion
- Adjusted EPS guidance for Q2 CY2026 is $2.10 at the midpoint, above analyst estimates of $2.00
- Operating Margin: 5.3%, in line with the same quarter last year
- Market Capitalization: $7.10 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 Q1 Earnings Call
- Melissa Dailey Fairbanks (Raymond James) asked about long-term working capital needs given the revenue growth outlook. Outgoing CFO Patrick Jermain stated the company is comfortable maintaining low to mid-60s cash cycle days, and new CFO David Abuhl cited recent throughput gains that reduce capital investment needs.
- Melissa Dailey Fairbanks (Raymond James) inquired about demand trends in industrial markets, especially energy storage and data center power. COO Oliver Mihm highlighted competitive differentiation in regulatory compliance and a strong pipeline in energy infrastructure and edge computing applications.
- Ruben Roy (Stifel) questioned the sustainability of operating margin structure and whether new wins would impact margins across segments. Jermain said margin differentials have narrowed and fixed cost leverage should support the 6% target, while CEO Todd Kelsey cited ongoing potential for improvement through operational efficiency.
- Steven Fox (Fox Advisors LLC) asked about operating leverage and drop-through rates in the current growth cycle. CFO David Abuhl said 10–12% drop-through on revenue growth is typical, and improvements are balanced against investments in capabilities such as cybersecurity.
- Anja Soderstrom (Sidoti) sought updates on the Malaysia facility’s profitability and growth outlook for Healthcare/Life Sciences. Kelsey reported Malaysia was slightly behind breakeven due to faster-than-expected ramp investments, but is on track for profitability, while Mihm projected sustained growth in Healthcare/Life Sciences driven by previous program wins.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be watching (1) the pace and profitability of new program ramps in aerospace, defense, and industrial markets, (2) the company’s ability to maintain operating margins despite ongoing supply chain and compensation pressures, and (3) updates on working capital efficiency as revenue accelerates. The impact of continued investments in automation and capacity utilization will also be key signposts for sustained growth.
Plexus currently trades at $264.93, up from $250.60 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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