What happened?
Shares of electronic manufacturing services company Plexus (NASDAQ: PLXS) fell 9.2% in the afternoon session after the company reported fiscal fourth-quarter results and guided fiscal first-quarter adjusted earnings per share below the quarter it just reported. According to a company press release, Plexus reported fiscal fourth-quarter revenue of $1.427 billion, a GAAP operating margin of 6.0%, and GAAP diluted earnings per share of $2.51. Non-GAAP diluted earnings per share was $2.84. For fiscal 2026, cash from operations was $68.2 million and capital expenditures were $97.1 million, so free cash flow was a $28.9 million use. For the fiscal first quarter of 2027, the company forecast revenue of $1.410 billion to $1.460 billion, GAAP diluted earnings per share of $2.16 to $2.32, and non-GAAP diluted earnings per share of $2.46 to $2.62. It expects to generate at least $100 million of free cash flow in fiscal 2027.
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What is the market telling us
Plexus’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 5.4% on the news that the company reported better-than-expected second-quarter profitability and a record number of new manufacturing program wins, leading to a positive outlook for the fiscal year. Plexus announced it secured a record $355 million in new manufacturing programs during the quarter, with its qualified opportunity pipeline growing 11% to $4.0 billion. The company saw strong performance across its business segments, with industrial revenue increasing 12% and aerospace & defense revenue jumping 19% from the previous quarter. Profitability also exceeded expectations, with a non-GAAP operating margin of 6%, which was at the top end of its guidance. This resulted in non-GAAP earnings per share of $2.05, surpassing the company's own forecast. Based on this momentum, Plexus now anticipates achieving revenue growth in the mid-teens or higher for fiscal 2026.
Plexus is up 43.1% since the beginning of the year, but at $217.87 per share, it is still trading 28.3% below its 52-week high of $303.82 from June 2026. Investors who bought $1,000 worth of Plexus’s shares 5 years ago would now be looking at an investment worth $2,495.
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