Plexus Announces Fiscal Third Quarter Financial Results

Plexus

NEENAH, WI, July 29, 2026 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal third quarter ended July 4, 2026, and guidance for our fiscal fourth quarter ending October 3, 2026.

Reports record fiscal third quarter 2026 revenue of $1.305 billion, GAAP operating margin of 4.7% and GAAP diluted EPS of $1.58. Reports fiscal third quarter 2026 non-GAAP operating margin of 6.3% and non-GAAP diluted EPS of $2.32, excluding $0.74 of stock-based compensation expense. Initiates fiscal fourth quarter 2026 revenue guidance of $1.330 billion to $1.380 billion with GAAP diluted EPS of $2.18 to $2.34, including $0.29 of stock-based compensation expense. Fiscal fourth quarter non-GAAP EPS guidance of $2.47 to $2.63 excludes stock-based compensation expense.

Three Months Ended July 4, 2026 July 4, 2026 Oct 3, 2026 Q3F26 Results Q3F26 Guidance Q4F26 Guidance Summary GAAP Items Revenue (in billions) $ 1.305 $1.200 to $1.250 $1.330 to $1.380 Operating margin 4.7 % 4.1% to 4.5% 5.5% to 5.9% Diluted EPS $ 1.58 $1.25 to $1.41 $2.18 to $2.34 Summary Non-GAAP Items (1) Adjusted operating margin (2) 6.3 % 5.9% to 6.3% 6.1% to 6.5% Adjusted EPS (3) $ 2.32 $2.02 to $2.18 $2.47 to $2.63 Return on invested capital (ROIC) 14.9 % Economic return 5.9 %

(1) Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures. (2) Excludes stock-based compensation expense of approximately 160 bps for Q3F26 results, 180 bps for Q3F26 guidance and 60 bps for Q4F26 guidance. (3) Excludes stock-based compensation expense, net of tax, of $0.74 for Q3F26 results, $0.77 for Q3F26 guidance and $0.29 for Q4F26 guidance.

Fiscal Third Quarter 2026 Information

Won 31 manufacturing programs during the quarter representing $255 million in annualized revenue when fully ramped into production. Purchased $20.6 million of our shares at an average price of $258.75 per share under our 2026 Share Repurchase Program, leaving $21.4 million available under our existing $100.0 million authorization.

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."

Story Continues

Mr. Kelsey added, "Our go-to-market team continued to drive strong performance with quarterly manufacturing wins of $255 million in annualized revenue. This result included significant wins for our Aerospace/Defense market sector as well as a new partnership in our Industrial market sector manufacturing a battery energy storage system for data centers. Furthermore, we expanded our funnel of qualified manufacturing opportunities to $4.5 billion, a record level, supporting the potential to sustain robust long-term revenue growth."

David Abuhl, Senior Vice President and Chief Financial Officer, commented, "Driven by continued progress on our working capital initiatives, our cash cycle of 62 days exceeded expectations. This outstanding result is the best quarterly cash cycle performance in over five years. In support of accelerating revenue growth, we had a slight usage of free cash flow in the quarter, which was better than our expectations. While we expect to maintain cash cycle days in the low-to-mid 60s for the fiscal fourth quarter, further working capital investments are required to support our substantial revenue growth projections. As such, we now expect a usage of free cash flow for fiscal 2026 with a return to meaningful free cash flow generation in early fiscal 2027."

Mr. Abuhl continued, "Our favorable cash cycle days, prudent capital expenditures and strong operating performance produced a return on invested capital of 14.9% in the quarter, up 110 basis points versus the prior quarter and 590 basis points above our cost of capital. This result represented the highest return in nearly five years."

Mr. Kelsey continued, "For our fiscal fourth quarter, we forecast continued revenue growth led by strength in our Healthcare/Life Sciences and Industrial market sectors, including our semiconductor capital equipment subsector. We are guiding revenue of $1.330 to $1.380 billion, up 4% sequentially and 28% year over year at the midpoint, non-GAAP operating margin of 6.1% to 6.5% and non-GAAP EPS of $2.47 to $2.63. For fiscal 2026, we now anticipate generating in excess of 20% revenue growth due to Plexus' success in launching numerous new programs and our market share gains combined with improved end market demand. Additionally, we expect to deliver this considerable revenue growth with greater than 6% non-GAAP operating margin and healthy working capital efficiency."

Mr. Kelsey concluded, "Our differentiated value proposition, focused on providing unmatched quality and delivery, is resulting in robust performance for fiscal 2026 and positions Plexus for sustained, long-term momentum. We currently see the potential to generate fiscal 2027 revenue growth in excess of our 9% to 12% goal led by our Aerospace/Defense and Industrial market sectors, including our semiconductor capital equipment subsector. In addition, we anticipate delivering operating margin expansion, while continuing to make important investments in talent and technology in support of future growth."

Quarterly Comparison Three Months Ended (in thousands, except EPS) July 4, 2026 Apr 4, 2026 Jun 28, 2025 Revenue $ 1,304,778 $ 1,163,757 $ 1,018,308 Gross profit 131,379 119,176 103,288 Operating income 61,260 61,837 53,608 Net income 42,993 49,809 45,116 Diluted EPS $ 1.58 $ 1.82 $ 1.64 Gross margin 10.1 % 10.2 % 10.1 % Operating margin 4.7 % 5.3 % 5.3 % ROIC (1) 14.9 % 13.8 % 14.1 % Economic return (1) 5.9 % 4.8 % 5.2 % (1) Refer to Non-GAAP Supplemental Information tables for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating margin, adjusted net income, adjusted diluted EPS, ROIC and economic return.

Business Segment and Market Sector Revenue

Plexus measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects Plexus' market sector focused strategy. Top 10 customers comprised 55% of revenue during the third quarter of fiscal 2026. This is up 1 percentage point from the second quarter of fiscal 2026 and up 7 percentage points from the third quarter of fiscal 2025.

Business Segments ($ in millions) Three Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025 Americas $ 428 $ 397 $ 312 Asia-Pacific 774 652 594 Europe, Middle East and Africa 109 116 117 Elimination of inter-segment sales (6 ) (1 ) (5 ) Total Revenue $ 1,305 $ 1,164 $ 1,018

Market Sectors ($ in millions) Three Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025 Aerospace/Defense $ 233 18 % $ 212 18 % $ 183 18 % Healthcare/Life Sciences 483 37 % 473 41 % 420 41 % Industrial 589 45 % 479 41 % 415 41 % Total Revenue $ 1,305 $ 1,164 $ 1,018

Non-GAAP Supplemental Information

Plexus provides non-GAAP supplemental information, such as ROIC, economic return and free cash flow, because such measures are used for internal management goals and decision-making, and because they provide management and investors with additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of non-recurring items that are not reflective of continuing operations. For additional information on non-GAAP measures, please refer to the attached Non-GAAP Supplemental Information tables.

ROIC and Economic Return

ROIC for the third quarter of fiscal 2026 was 14.9%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a four-quarter period for the third fiscal quarter. Invested capital is defined as equity plus debt and operating lease obligations, less cash and cash equivalents. Plexus' weighted average cost of capital for fiscal 2026 is 9.0%. ROIC for the third quarter of fiscal 2026 less Plexus' weighted average cost of capital resulted in an economic return of 5.9%.

Free Cash Flow

Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended July 4, 2026, cash flows provided by operations was $25.9 million and capital expenditures were $26.6 million, which resulted in a usage of free cash flow of $0.7 million.

Cash Cycle Days Three Months Ended July 4, 2026 Apr 4, 2026 Jun 28, 2025 Days in Accounts Receivable 56 55 59 Days in Contract Assets 13 12 13 Days in Inventory 116 120 128 Days in Accounts Payable (76 ) (74 ) (72 ) Days in Advanced Payments (47 ) (49 ) (59 ) Annualized Cash Cycle (1) 62 64 69

(1) Plexus calculates cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments.

Conference Call and Webcast Information

What: Plexus Fiscal 2026 Q3 Earnings Conference Call and Webcast When: Thursday, July 30, 2026 at 8:30 a.m. Eastern Time Where: Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, plexus.com. Participants can also join utilizing the links below:

Webcast link:
https://events.q4inc.com/attendee/435522461 Replay: The webcast will be archived on the Plexus website and will be available as on-demand for 12 months

Investor and Media Contact
Shawn Harrison
+1.920.969.6325
[email protected]

About Plexus
At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 27 facilities. For more information about Plexus, visit our website at www.plexus.com.

Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effects of shortages, delays and price fluctuations in obtaining components as a result of economic cycles, capacity constraints, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate engagement terms, and the lack of a track record of order volume and timing; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customers and deliver product on a timely basis; the risks of concentration of work for certain customers; the effects of start-up costs of new programs and facilities or the costs associated with winding down programs or the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of the economy regionally or globally; the effect of changes in the pricing and margins of our services; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and regulatory matters in the United States and in the other countries in which we do business; the potential effect of other events outside our control, such as the conflict between Russia and Ukraine, conflict in the Middle East (including in Iran), escalating tensions between China and Taiwan or China and the United States, tensions in or amongst countries in which we operate or transact business; changes in energy prices, terrorism, global health epidemics and weather events; the impact of increased competition; an inability to successfully manage human capital, including succession planning for and transition of senior executives; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2025 Form 10-K.

PLEXUS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended Jul 4, Jun 28, Jul 4, Jun 28, 2026 2025 2026 2025 Net sales $ 1,304,778 $ 1,018,308 $ 3,538,387 $ 2,974,600 Cost of sales 1,173,399 915,020 3,181,694 2,672,869 Gross profit 131,379 103,288 356,693 301,731 Operating expenses: Selling and administrative expenses 70,119 49,680 179,132 147,789 Restructuring and other charges, net — — — 4,683 Operating income 61,260 53,608 177,561 149,259 Other income (expense): Interest expense (4,089 ) (2,501 ) (10,399 ) (9,192 ) Interest income 1,463 934 3,259 3,039 Miscellaneous, net (2,185 ) (2,205 ) (5,063 ) (4,753 ) Income before income taxes 56,449 49,836 165,358 138,353 Income tax expense 13,456 4,720 31,374 16,897 Net income $ 42,993 $ 45,116 $ 133,984 $ 121,456 Earnings per share: Basic $ 1.61 $ 1.67 $ 5.01 $ 4.48 Diluted $ 1.58 $ 1.64 $ 4.90 $ 4.39 Weighted average shares outstanding: Basic 26,712 27,059 26,745 27,084 Diluted 27,294 27,532 27,347 27,670

PLEXUS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) Jul 4, Sep 27, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 314,053 $ 306,464 Restricted cash 514 294 Accounts receivable 795,159 656,573 Contract assets 193,942 150,654 Inventories 1,488,391 1,229,839 Prepaid expenses and other 103,285 54,969 Total current assets 2,895,344 2,398,793 Property, plant and equipment, net 546,159 546,052 Operating lease right-of-use assets 66,560 72,863 Deferred income taxes 95,173 91,349 Other assets 30,361 28,053 Total non-current assets 738,253 738,317 Total assets $ 3,633,597 $ 3,137,110 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt and finance lease obligations $ 183,814 $ 45,793 Accounts payable 978,899 726,597 Advanced payments from customers 602,933 575,850 Accrued salaries and wages 111,557 109,076 Other accrued liabilities 68,563 61,367 Total current liabilities 1,945,766 1,518,683 Long-term debt and finance lease obligations, net of current portion 91,644 91,987 Long-term operating lease liabilities 23,888 29,422 Deferred income taxes 7,322 6,000 Other liabilities 36,225 36,430 Total non-current liabilities 159,079 163,839 Total liabilities 2,104,845 1,682,522 Shareholders' equity: Common stock 549 547 Additional paid-in-capital 710,372 695,653 Common stock held in treasury (1,319,506 ) (1,255,451 ) Retained earnings 2,130,012 1,996,028 Accumulated other comprehensive income 7,325 17,811 Total shareholders' equity 1,528,752 1,454,588 Total liabilities and shareholders' equity $ 3,633,597 $ 3,137,110

PLEXUS CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Nine Months Ended Jul 4, Jun 28, 2026 2025 Cash flows from operating activities Net income $ 133,984 $ 121,456 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 57,357 58,509 Share-based compensation expense and related charges 36,820 22,466 Other, net (211 ) (8,381 ) Changes in operating assets and liabilities, excluding impacts of currency: Accounts receivable (140,201 ) (37,265 ) Contract assets (43,250 ) (24,090 ) Inventories (259,911 ) 37,543 Other current and non-current assets (47,874 ) (1,262 ) Accrued income taxes payable (3,930 ) (13,361 ) Accounts payable 271,371 88,902 Advanced payments from customers 27,444 (118,276 ) Other current and non-current liabilities 7,389 (9,028 ) Cash flows provided by operating activities 38,988 117,213 Cash flows from investing activities Payments for property, plant and equipment (74,312 ) (60,441 ) Other, net (258 ) (412 ) Cash flows used in investing activities (74,570 ) (60,853 ) Cash flows from financing activities Borrowings under debt agreements 605,500 293,500 Payments on debt and finance lease obligations (476,674 ) (402,875 ) Debt issuance costs (1,108 ) — Repurchases of common stock (64,055 ) (43,807 ) Payments related to tax withholding for share-based compensation (21,473 ) (15,100 ) Cash flows provided by (used in) financing activities 42,190 (168,282 ) Effect of exchange rate changes on cash and cash equivalents 1,201 2,077 Net increase (decrease) in cash and cash equivalents and restricted cash 7,809 (109,845 ) Cash and cash equivalents and restricted cash: Beginning of period 306,758 347,462 End of period $ 314,567 $ 237,617

PLEXUS CORP. AND SUBSIDIARIES NON-GAAP SUPPLEMENTAL INFORMATION Table 1 (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended Jul 4, Apr 4, Jun 28, Jul 4, Jun 28, 2026 2026 2025 2026 2025 Operating income, as reported $ 61,260 $ 61,837 $ 53,608 $ 177,561 $ 149,259 Operating margin, as reported 4.7 % 5.3 % 5.3 % 5.0 % 5.0 % Non-GAAP adjustments: Restructuring costs (1) — — — — 4,683 Stock-based compensation (2) 21,137 7,922 7,691 36,824 21,813 Non-GAAP operating income $ 82,397 $ 69,759 $ 61,299 $ 214,385 $ 175,755 Non-GAAP operating margin 6.3 % 6.0 % 6.0 % 6.1 % 5.9 % Net income, as reported $ 42,993 $ 49,809 $ 45,116 $ 133,984 $ 121,456 Non-GAAP adjustments: Restructuring costs, net of tax (1) — — — — 4,191 Stock-based compensation, net of tax (2) 20,337 6,055 7,307 33,769 20,722 Adjusted net income $ 63,330 $ 55,864 $ 52,423 $ 167,753 $ 146,369 Diluted earnings per share, as reported $ 1.58 $ 1.82 $ 1.64 $ 4.90 $ 4.39 Non-GAAP per share adjustments: Restructuring costs, net of tax (1) — — — — 0.15 Stock-based compensation, net of tax (2) 0.74 0.23 0.26 1.23 0.75 Adjusted diluted earnings per share $ 2.32 $ 2.05 $ 1.90 $ 6.13 $ 5.29

(1) During the nine months ended June 28, 2025, restructuring costs of $4.7 million, or $4.2 million net of taxes, were incurred primarily for employee severance costs associated with a reduction in the Company's workforce in the EMEA and AMER regions. (2) During the three and nine months ended July 4, 2026, $12.9 million, or $12.5 million net of taxes ($0.46 per diluted share), of accelerated stock-based compensation expense was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations as a result of previously announced executive retirement agreements.

PLEXUS CORP. AND SUBSIDIARIES NON-GAAP SUPPLEMENTAL INFORMATION Table 2 (in thousands) (unaudited) ROIC and Economic Return Calculations Nine Months Ended Six Months Ended Nine Months Ended Jul 4, Apr 4, Jun 28, 2026 2026 2025 Operating income, as reported $ 177,561 $ 116,301 $ 149,259 Restructuring and other charges, net — — 4,683 Accelerated stock-based compensation (1) + 12,940 + — + — Adjusted operating income $ 190,501 $ 116,301 $ 153,942 ÷ 3 x 2 ÷ 3 $ 63,500 $ 51,314 x 4 x 4 Adjusted annualized operating income $ 254,000 $ 232,602 $ 205,256 Adjusted effective tax rate x 16 % x 17 % x 11 % Tax impact 40,640 39,542 22,578 Adjusted operating income (tax-effected) $ 213,360 $ 193,060 $ 182,678 Average invested capital ÷ $ 1,431,266 ÷ $ 1,401,134 ÷ $ 1,298,575 ROIC 14.9 % 13.8 % 14.1 % Weighted average cost of capital - 9.0 % - 9.0 % - 8.9 % Economic return 5.9 % 4.8 % 5.2 %

Average Invested Capital Calculations Jul 4, Apr 4, Jan 3, Sep 27, 2026 2026 2026 2025 Equity $ 1,528,752 $ 1,489,800 $ 1,481,063 $ 1,454,588 Plus: Debt and finance lease obligations - current 183,814 143,112 66,837 45,793 Operating lease obligations - current (2) 7,616 7,758 7,943 8,253 Debt and finance lease obligations - long-term 91,644 91,034 91,139 91,987 Operating lease obligations - long-term 23,888 25,769 27,327 29,422 Less: Cash and cash equivalents (314,053 ) (303,133 ) (248,825 ) (306,464 ) $ 1,521,661 $ 1,454,340 $ 1,425,484 $ 1,323,579 Average Invested Capital Calculations Jun 28, Mar 29, Dec 28, Sep 28, 2025 2025 2024 2024 Equity $ 1,419,085 $ 1,351,675 $ 1,319,069 $ 1,324,825 Plus: Debt and finance lease obligations - current 50,678 121,014 121,977 157,325 Operating lease obligations - current (2) 8,470 9,968 14,875 14,697 Debt and finance lease obligations - long-term 92,215 88,761 88,728 89,993 Operating lease obligations - long-term 31,192 32,720 35,124 32,275 Less: Cash and cash equivalents (237,567 ) (310,531 ) (317,161 ) (345,109 ) $ 1,364,073 $ 1,293,607 $ 1,262,612 $ 1,274,006

(1) During the three and nine months ended July 4, 2026, $12.9 million of accelerated stock-based compensation expense was recorded in selling and administrative expenses in the accompanying Condensed Consolidated Statements of Operations as a result of previously announced executive retirement agreements. (2) Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.

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