SoFi shares rise as record revenue, member growth drive strong Q3 results
Introduction & Market Context
Plexus Corp (NASDAQ:PLXS) presented its fiscal fourth quarter and full-year 2025 results on October 23, 2025, highlighting continued sequential revenue growth and strong earnings performance. The electronic manufacturing services provider reported Q4 revenue of $1.058 billion, aligning with company guidance, while delivering non-GAAP EPS of $2.14, exceeding forecasts by 14.44%.
Despite the strong performance, Plexus shares showed minimal movement following the presentation, with the stock closing at $146.10 and dropping slightly by 0.7% the day after the results. This muted reaction suggests the market had largely anticipated the positive results, with the stock trading within its 52-week range of $103.43 to $172.89.
Quarterly Performance Highlights
Plexus reported its third consecutive quarter of sequential revenue growth in Q4 2025, with revenue reaching $1.058 billion. The company’s non-GAAP operating margin came in at 5.8%, while non-GAAP EPS of $2.14 significantly exceeded guidance. For the full fiscal year 2025, Plexus achieved 30% non-GAAP EPS growth and a 40 basis point expansion in non-GAAP operating margin.
As shown in the following chart of quarterly financial results:
The company’s new business momentum remained strong with Q4 wins of $274 million, reflecting continued market share gains. The manufacturing funnel grew to $3.684 billion, showing both sequential and year-over-year growth, which supports the company’s future revenue expectations.
The following chart illustrates the company’s wins and funnel trends:
Sector Performance Analysis
Plexus’s performance varied across its three main market sectors. The Industrial sector showed the strongest performance with 11% sequential growth in Q4, reaching $461 million in revenue. This growth was driven by strength in semiconductor capital equipment, broadband communications, and energy segments. However, the company expects this sector to experience a high single-digit decline in Q1 2026 due to seasonality and muted near-term demand.
The Healthcare/Life Sciences sector delivered modest 1% sequential growth to $434 million in Q4 2025, meeting expectations. Plexus anticipates high single to low double-digit growth in Q1 2026 for this sector, benefiting from multiple program ramps and some customer demand strength.
The Aerospace/Defense sector experienced a 6% sequential decline to $173 million in Q4 2025, missing expectations due to program ramp timing issues. However, the company expects this sector to return to growth in Q1 2026, driven by program ramps in commercial aerospace, defense, and unmanned aircraft.
The qualified manufacturing funnel, which provides visibility into future business opportunities, remained robust across all sectors:
Cash Flow and Balance Sheet Strength
Plexus demonstrated strong financial health in Q4 2025, generating $97.2 million in free cash flow, significantly exceeding projections. The company’s cash balance improved to $307 million, while total debt decreased to $138 million. Return on invested capital reached 14.6%, up from 14.1% in the previous quarter.
Working capital management improved with cash cycle days decreasing to 63 in Q4 from 69 in Q3, primarily driven by a reduction in inventory days from 128 to 118. This improvement in working capital efficiency contributed to the strong free cash flow performance.
The following table details the company’s cash flow and balance sheet metrics:
Forward Guidance and Outlook
Looking ahead to fiscal 2026, Plexus provided Q1 guidance with revenue expected between $1.050 billion and $1.090 billion, representing modest sequential growth. The company projects non-GAAP EPS between $1.66 and $1.81 for Q1 2026, with a non-GAAP operating margin between 5.6% and 6.0%.
For the full fiscal year 2026, Plexus aims to accelerate revenue growth toward its 9-12% goal, driven by new program ramps and market share gains. The company expects to generate approximately $100 million in free cash flow for the year.
The detailed Q1 2026 guidance is presented in the following table:
Plexus’s income statement provides a comprehensive view of its financial performance, comparing actual results against guidance:
CEO Todd Kelsey characterized fiscal 2025 as "an outstanding year for Plexus Corp" during the earnings call, highlighting the company’s strategic focus on data center and power generation. He expressed confidence in future growth, stating, "We expect to deliver revenue growth through ongoing ramps inclusive of market share gains."
The company also emphasized its sustainability initiatives, including receiving GE Vernova’s "Supplier Innovation Award," completing over 32,000 paid volunteer hours (up 47% year-over-year), and reducing waste-to-landfill intensity by over 30% globally. These efforts underscore Plexus’s commitment to environmental and social responsibility while maintaining operational excellence.
As Plexus enters fiscal 2026, the company appears well-positioned to capitalize on its strong funnel and recent wins, though investors will be watching closely to see if the anticipated acceleration in revenue growth materializes amid varying sector performance.
Full presentation:
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