Plexus Corp reported fiscal first-quarter 2026 results that met or topped its guidance and prompted Stifel to raise the firms price target to $200 from $150, while retaining a Hold recommendation. The move comes as the stock has already exceeded that new target, trading at $208.22 and carrying notable momentum - up 54.57% over the past six months and 34.42% year-to-date.
On the top line, Plexus recorded revenue of $1.07 billion for the quarter, squarely at the midpoint of its guidance range of $1.05 billion to $1.09 billion. Adjusted earnings per share were $1.78, reaching the high end of the companys projected range of $1.66 to $1.81. Over the last twelve months the company achieved diluted EPS of $6.43, translating to a trailing P/E ratio of 31.55 at current prices.
The companys adjusted operating margin was 5.8% in the quarter. Plexus attributed margin improvement in part to a 10% quarter-over-quarter expansion in its Healthcare/Life Sciences segment and to an earlier-than-expected recovery in demand for semiconductor capital equipment and energy-related work. Financial health metrics published alongside the results describe a strong balance sheet position: a Piotroski Score of 9, a debt-to-equity ratio of 0.2 and an overall financial health rating assessed as "GOOD."
Management updated its outlook for fiscal year 2026 revenue, saying it now expects to "meet or exceed" the high end of its previously stated growth range of 9% to 12%. That revised guidance is underpinned by record aerospace and defense program awards that total $220 million in annualized value. If achieved, the companys projected growth pace would represent an acceleration from the 4.36% revenue increase recorded over the last twelve months.
Stifel noted managements confidence in scaling Plexus toward a $6.0 billion revenue capacity without requiring significant new investment. Despite that positive operational outlook, the firm judged the current risk/reward profile to be balanced at prevailing valuations. Stifel highlighted two near-term considerations: expected seasonal compensation headwinds of 50-60 basis points in fiscal second quarter results and ongoing facility ramp activity in Malaysia and Thailand, which could temper near-term margin expansion.
Other broker commentary echoed strength in the quarter. Benchmark raised its price target to $220 from $195 and maintained a Buy rating, citing the companys stronger-than-expected results and an upbeat second-quarter outlook. Independent market analysis indicates the stock is trading above its fair value.
Additional detail from the quarter shows results slightly ahead of sell-side expectations: Plexus reported adjusted EPS of $1.78 versus an analysts consensus of $1.75, while the $1.07 billion in revenue matched analyst projections and represented a 10% increase from the same period a year earlier.
Context and near-term considerations
- Operational momentum in Healthcare/Life Sciences and a recovery in semiconductor capital equipment and energy underpinned margin gains.
- Record aerospace and defense program wins provide backlog and revenue visibility, amounting to $220 million in annualized value.
- Managements revised guidance to meet or exceed the high end of a 9%-12% growth target indicates upward guidance bias for fiscal 2026.
Investors and market participants will likely watch fiscal second-quarter results for the effect of seasonal compensation pressures and the pace of facility ramp activity in Southeast Asia. Those items were specifically cited by Stifel as factors that balance the upside embedded in the new target against current valuation levels.