Plexus Expects Mid-to-High-Teens Revenue Growth in 2027
Key Facts
On October 28, 2026, Plexus announced results for the fourth quarter and fiscal year ended October 3 and provided its outlook for fiscal 2027. The company expects revenue growth in the mid-to-high teens, with higher operating margins and continued working capital efficiency. It said in its statement: "We now expect revenue growth in the mid-to-high teens, with higher operating margins and continued working capital efficiency." The company attributed the outlook to strong market sectors, program ramps and market share gains. The new outlook follows a fiscal year in which revenue increased from the prior year.
Fiscal 2026 revenue was about $4.965 billion, compared with $4.033 billion in the previous fiscal year, while net income rose to $202.490 million from $172.885 million. Revenue was split across the industrial sector at $2.185 billion, healthcare and life sciences at $1.933 billion, and aerospace and defense at $847 million. The company said on its earnings call that it continues to see very strong growth in aerospace and defense and industrial. Sources it cited included semiconductor equipment within the industrial sector. It also forecast stronger growth in healthcare and life sciences as demand improves and new programs launched during 2026 ramp up.
The qualified manufacturing pipeline reached a record $4.9 billion in fiscal 2026's fourth quarter, expanding by $1.2 billion, or 33%, year over year. The pipeline provides support for the company's expectations for program ramps and market share gains, which it named as drivers in its statement. In the fourth quarter, non-GAAP operating margin was 6.7%, and diluted earnings per share were $2.84. Plexus said quarterly revenue of $1.43 billion, margin and earnings per share all exceeded guidance ranges. The higher margin target is based on operating momentum and expected leverage from revenue growth, alongside investment in growth, employees and technology.
Plexus raised its non-GAAP operating margin target to a range of 6.5%-7.0%, after consistently exceeding its previous 6% target. The company said: "After consistently exceeding our previous 6% target, we are announcing a new non-GAAP operating margin target of 6.5% to 7.0%." The company tied the new target to continued improvement in operating performance, rather than revenue growth alone. This comes as it expects working capital efficiency to continue alongside sales growth. The targeted margin range is an operating metric the company announced alongside its annual outlook.
For the first quarter of fiscal 2027, ending January 2, 2027, the company expects revenue of between $1.410 billion and $1.460 billion. The midpoint represents year-over-year growth of 34% and sequential growth of 1%, according to its guidance. It also set expected operating margin at between 6.0% and 6.4%, and non-GAAP earnings per share at between $2.46 and $2.63. Plexus expects year-over-year revenue growth in all three of its sectors during the quarter. Its outlook includes sequential growth in aerospace and defense and healthcare and life sciences, offset by demand normalization in the industrial sector.
In trading on October 29, Plexus shares fell 6.13% to $224.66, compared with a previous close of $239.34. The previous close was recorded on October 28, while EL7 data showed the closing price rising from $220.78 on October 22 to $239.34 on October 28. An Investing.com report linked the decline to investors' possible focus on near-term guidance, seasonal cash use and the pace of future growth. The share move shows a decline on the day after the results and guidance announcement. The next quarterly outlook remains tied to the quarter ending January 2, 2027.