Plexus (NASDAQ:PLXS) Beats Expectations in Strong Q2 CY2026, Provides Optimistic Revenue Guidance for Next Quarter

Electronic manufacturing services company Plexus (NASDAQ:PLXS) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 28.1% year on year to $1.30 billion. On top of that, next quarter’s revenue guidance ($1.36 billion at the midpoint) was surprisingly good and 6.5% above what analysts were expecting. Its non-GAAP profit of $2.32 per share was 8.5% above analysts’ consensus estimates.

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Todd Kelsey, President and Chief Executive Officer, commented, “Plexus generated record quarterly revenue in the fiscal third quarter by capturing strengthening end market demand and successfully launching numerous new programs. Fiscal third quarter revenue of $1.305 billion exceeded guidance, increasing 12% sequentially and 28% year over year. In addition, non-GAAP operating margin of 6.3% met the high end of guidance, non-GAAP EPS of $2.32 exceeded guidance and we again delivered healthy working capital efficiency.”

Company Overview

With over 20,000 team members across 26 global facilities, Plexus (NASDAQ:PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $4.60 billion in revenue over the past 12 months, Plexus is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

As you can see below, Plexus grew its sales at a decent 6% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Plexus’s annualized revenue growth of 8.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Plexus reported robust year-on-year revenue growth of 28.1%, and its $1.30 billion of revenue topped Wall Street estimates by 5.8%. Company management is currently guiding for a 28% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 12.4% over the next 12 months, an improvement versus the last two years. This projection is admirable and indicates its newer products and services will spur better top-line performance.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

Plexus was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 5.6% was weak for a business services business.

On the plus side, Plexus’s adjusted operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q2, Plexus generated an adjusted operating margin profit margin of 6.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Plexus’s EPS grew at 10.8% compounded annual growth rate over the last five years, higher than its 6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Plexus’s earnings to better understand the drivers of its performance. As we mentioned earlier, Plexus’s adjusted operating margin was flat this quarter but expanded by 1.5 percentage points over the last five years. On top of that, its share count shrank by 6.1%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Plexus, its two-year annual EPS growth of 30.5% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q2, Plexus reported adjusted EPS of $2.32, up from $1.90 in the same quarter last year. This print beat analysts’ estimates by 8.5%. Over the next 12 months, Wall Street expects Plexus’s full-year EPS to grow 11.4% from $8.29 to $9.24.

Key Takeaways from Plexus’s Q2 Results

We were impressed by how significantly Plexus blew past analysts’ EPS guidance for next quarter expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock remained flat at $242.81 immediately following the results.

Plexus had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).