Plexus Reports Strong Q1 Earnings, Surpassing Wall Street Expectations

Plexus has delivered Q1 financial results that marginally beat analyst forecasts, demonstrating solid operational execution despite a slight revenue miss. The company reported quarterly earnings per share of $1.78, narrowly exceeding the Zacks consensus estimate of $1.77 per share—representing a 0.57% earnings surprise. This compares to $1.73 per share in the same quarter the previous year, indicating year-over-year EPS growth. All figures are adjusted for non-recurring items, providing a clearer picture of core operational performance.

Plexus Delivers Mixed Financial Results with Contrasting Performance Metrics

For the quarter ended December 2025, Plexus generated $1.07 billion in revenues, falling slightly short of the $1.0808 billion consensus expectation by 0.11%. However, this represented meaningful growth from $976.12 million in year-ago revenues, indicating underlying business momentum despite the narrow revenue shortfall. The earnings-to-revenue dynamic reveals that Plexus achieved strong profitability margins despite the revenue challenge, suggesting effective cost management and operational leverage.

The company’s track record demonstrates impressive consistency on the earnings front. Over the past four quarters, Plexus has surpassed consensus EPS expectations four times, establishing itself as a reliable earnings performer. Notably, the previous quarter showed an exceptional 16.3% earnings surprise when the company posted $2.14 per share against expectations of $1.84 per share. This pattern underscores management’s ability to navigate operational challenges and deliver results that often exceed market expectations.

From a broader market perspective, Plexus shares have appreciated approximately 18% year-to-date, significantly outpacing the S&P 500’s gain of 1.9%. This substantial outperformance reflects investor confidence in the company’s strategic direction and financial execution within the Electronics - Manufacturing Services sector.

What Lies Ahead: Plexus Earnings Outlook and Estimate Revisions

Looking forward, the trajectory of Plexus will largely depend on how management commentary during the earnings call addresses recent results and guides future expectations. Analyst sentiment surrounding Plexus remains measured, with estimate revisions trending in mixed directions heading into the earnings release. This mixed momentum currently translates into a Zacks Rank #3 (Hold) rating, suggesting that shares are expected to track market-level performance in the near term rather than significantly outperform or underperform.

For the coming quarter, Plexus is expected to generate earnings of $1.79 per share on revenues of $1.08 billion. The full fiscal year consensus forecast estimates EPS of $7.49 on $4.35 billion in total revenues, providing a benchmark for investors to assess quarterly progress. The Electronics - Manufacturing Services industry—Plexus’s home sector—currently ranks in the top 23% among 250+ Zacks-ranked industries, indicating favorable structural positioning. Historical research demonstrates that companies operating in top-50% ranked industries outperform bottom-50% peers by more than a 2-to-1 margin, suggesting that industry tailwinds could provide meaningful support for Plexus going forward.

The sustainability and direction of Plexus’s stock price movement will hinge on whether management can sustain the earnings momentum demonstrated in recent quarters while addressing the revenue growth challenges evidenced in the latest quarter.

Evaluating Plexus in the Broader Investment Landscape

To contextualize Plexus within the technology sector, Applied Materials—another Computer and Technology player focused on chipmaking equipment—provides an instructive comparison point. Applied Materials recently reported Q1 results with earnings expected at $2.19 per share, representing an 8% year-over-year decline. Revenues are anticipated at $6.86 billion, down 4.3% year-over-year, illustrating headwinds affecting segments of the semiconductor equipment industry.

In contrast, Plexus’s ability to grow earnings while managing a modest revenue shortfall demonstrates more resilience than some broader technology sector peers. For investors evaluating Plexus as a potential holding, the company presents a mixed risk-reward profile: strong historical earnings delivery and market outperformance are offset by near-term estimate revisions that remain inconsistent, and the sequential revenue challenge warrants monitoring.

The decision to invest in or hold Plexus should ultimately rest on individual risk tolerance, investment horizon, and conviction regarding the sustainability of electronics manufacturing demand in the current macroeconomic environment.