Plexus Corp. (PLXS) reported record-breaking revenue in its fiscal third quarter of 2026, fueled by surging demand across its market sectors and the successful launch of multiple new programs. During the earnings call held this week, CEO Todd Kelsey and CFO David Abuhl confirmed that the company is positioned to deliver over 20% revenue growth for the full fiscal year 2026, with a strong momentum carrying into 2027.
Operational Resilience and Financial Milestones
Despite a recent tornado impacting the community near its corporate headquarters, Plexus reported no material damage to its operations. The company delivered a robust 6.3% non-GAAP operating margin in Q3, meeting the high end of its guidance. Revenue reached $1.305 billion, a 12% sequential increase and a 28% year-over-year jump. Additionally, the company achieved its best cash cycle performance in over five years.
Market Sector Performance
Plexus continues to see broad-based success across its three core pillars:
- Aerospace and Defense: Revenue grew 10% sequentially, with $135 million in new program wins during the quarter. The company expects growth in this sector to exceed 20% for fiscal 2026.
- Healthcare/Life Sciences: Revenue rose 2% sequentially, driven by surgical robotics and next-generation ultrasound platform production.
- Industrial: This sector saw a significant 23% sequential revenue increase, bolstered by new partnerships in data center battery energy storage systems and semiconductor capital equipment.
Record Funnel and Future Growth Strategy
The company’s funnel of qualified manufacturing opportunities reached a record $4.5 billion, signaling sustainable long-term growth. Plexus is actively expanding capacity at its Penang, Malaysia facility to support this trajectory. Management expressed high confidence in exceeding their long-term 9% to 12% annual revenue growth target for fiscal 2027, driven by market share gains and leadership in disruptive technologies.
Guidance for Fiscal Q4 2026
Looking ahead to the fourth quarter, Plexus anticipates:
- Revenue: $1.33 billion to $1.38 billion.
- Non-GAAP Operating Margin: 6.1% to 6.5%.
- Non-GAAP EPS: $2.47 to $2.63.
The company remains focused on maintaining disciplined working capital efficiency and expects a return to meaningful free cash flow generation exceeding $100 million in fiscal 2027. By leveraging a campus-based manufacturing model and strategic investments in talent and technology, Plexus is positioning itself to scale as an $8 billion to $10 billion revenue company in the coming years.
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