Plexus Q4 FY26 Revenue Soars 35% to $1.43B, GAAP Margin Hits 6.0%, EPS $2.51

What happened

Plexus reported fiscal Q4 2026 revenue of $1.427 billion, up 35% from $1.058 billion in the prior-year quarter, driven by robust conversion of its manufacturing program wins. GAAP operating margin expanded to 6.0%, a level previously only achieved on a non-GAAP basis, indicating improved profitability and operating leverage. GAAP diluted EPS of $2.51 rose 31% from $1.91, beating consensus expectations and reflecting strong demand across sectors. The company also issued guidance for fiscal Q1 2027, though specific figures were not disclosed in the press release, leaving uncertainty about near-term momentum. This blowout quarter sharply contrasts with the low-single-digit growth and margin concerns outlined in prior analyst reports, suggesting a fundamental acceleration in the business.

Implication

FY2026 appears to have delivered exceptional revenue growth, likely exceeding 30% for the full year, which would shatter the prior thesis of stagnant growth and force a reassessment of the company's long-term trajectory. The improvement in GAAP operating margin to 6.0% suggests that the company's focus on mix and efficiency is paying off, potentially supporting a higher valuation multiple. However, investors should scrutinize the sustainability of this growth: if it stems from one or two large program ramps, the base could be lumpy, and the company's guidance for FY2027 will be critical to confirm durability. The stock, which traded at $181.30 in January 2026 and was flagged as a potential sell, has likely surged on this news, making entry points less attractive until more detail on segment performance and cash flow is available. A conservative response would be to hold existing positions but avoid adding aggressively until the company demonstrates that the growth is broad-based and margin expansion is structural rather than cyclical.

Thesis delta

The prior 'potential sell' thesis based on low growth and rich valuation is invalidated by Q4 FY26's 35% revenue surge and margin expansion. The new evidence suggests Plexus has successfully converted its large program win funnel into outsized growth, shifting the balance of risks from execution failure to demand sustainability. The thesis now leans bullish, contingent on confirmation that growth is durable and not a one-quarter anomaly.