An electronics manufacturing services firm that designs and builds highly complex products for the industrial, healthcare, and aerospace and defense markets. Founded in 1979 in Neenah, Wisconsin, by Peter Strandwitz, John Nussbaum, and fellow entrepreneurs, it started by making circuit boards under contract for IBM. The name "Plexus" comes from Latin meaning an interwoven network.
Plexus gross margin holds at 10.1% as revenue rises 28%, but a $297.5M inventory build consumes cash and net income falls on a higher tax rate.
rose 28% to $1.3 billion, but the profit story diverged. held flat at 10.1% and fell 4.7% to $43.0 million as a took effect, while a $297.5 million build pushed to a $0.8 million outflow. The top line is accelerating, but the cash cycle is now absorbing the cost of that growth.
Key takeaways
rose 28.1% to $1.30 billion, led by a 42.2% increase in the Industrial sector and a 30.4% increase in the APAC , with management citing new product ramps and semiconductor capital equipment share gains.
was flat at 10.1% as a 27.2% increase in to $131.4 million was offset by higher fixed costs and a shift in customer mix that diluted the margin rate.
fell 4.7% to $43.0 million and fell 3.7% to $1.58, driven by a higher from the implementation of a and the absence of a prior-year discrete tax benefit.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 28% to $1.3B driven by new product ramps and semi-cap demand, while gross margin held flat at 10.1%.
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Consolidated grew 28.1% to $1.30B, led by the Industrial sector (+42.2%) and APAC (+30.4%), with meaningful contributions from semi-cap share gains.
rose 14.3% to $61.3 million, but contracted to 4.7% from 5.1% a year ago as selling and administrative expenses rose, including $12.9 million in accelerated from executive retirements.
swung to a $0.8 million outflow from a $193.8 million inflow a year ago, as a $297.5 million build to support ramping programs and a $102.9 million increase in consumed cash.
The company refinanced its , extending the maturity to 2031, drew on it to fund operations, and repurchased $63.6 million in stock under its 2026 Program, leaving $21.4 million remaining authorized.
What changed
The flagged since Q3 FY2024 as a material and unfavorable beginning in fiscal 2026 has now taken effect, driving the higher and contributing to the 4.7% decline in despite a 14.3% increase in .
held at 10.1%, sustaining the 10%-plus level for a fifth consecutive quarter, but the flat result against a 28% increase suggests the favorable customer mix shift that previously lifted margins is now normalizing, as management cited a mix shift as a factor this quarter.
The $297.5 million build extends the pattern from Q1 and Q2 FY2026, where $85.8 million and $170.7 million builds consumed cash; the release that drove the $341.3 million inflow in FY2024 has fully reversed, and free cash flow is now negative on a trailing basis.
The AMER 's growth rate decelerated from 34.5% in Q2 FY2026 to 25.9% in Q1 FY2026, and the filing does not break out the Q3 rate, but the 30.4% APAC growth and 42.2% Industrial sector growth suggest the demand recovery is broadening beyond the prior AMER catch-up.
What to watch
Whether the $297.5 million build converts to and cash in Q4 FY2026, or whether elevated inventory levels persist and keep negative for the full fiscal year.
Whether can hold at or above 10% as the customer mix shift becomes a force and fixed costs rise with new program ramps, or whether it retreats toward the 9-10% range.
The full-quarter impact of the on the , now that it is in effect, and whether the company discloses any mitigating actions.
Whether the Industrial sector's 42.2% growth rate is sustainable or reflects a one-time increase from semiconductor capital equipment share gains.
increased 27.2% to $131.4M, but remained flat at 10.1% as higher fixed costs and a shift in customer mix offset sales .
rose 14.4% to $61.3M, while contracted 60 to 4.7%, primarily due to a $14.9M increase in , including $12.9M in accelerated expense from executive retirements.
declined 4.7% to $43.0M and fell to $1.58, driven by a higher from the implementation of a and a prior-year .
dropped to $39.0M from $117.2M, as a $297.5M build for ramping programs and a $102.9M increase in more than offset higher and customer advances.
The company refinanced its , extending maturity to 2031, and repurchased $63.6M in shares under the 2026 Program, with $21.4M remaining authorized.
Quantitative and Qualitative Disclosures About Market Risk
No material change in market risk from FY2025; a 10% adverse move in FX or rates would not materially impact the company.
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There were no material changes in market-risk exposures from those disclosed in the 2025 10-K.
Foreign-currency transactions represented 8% of and 18% of total costs in Q3 FY2026.
The company selectively hedges foreign-currency exposures tied to non-functional-currency assets and liabilities using foreign currency contracts.
A hypothetical 10% change in the U.S. dollar versus other transactional currencies would not materially affect financial position, results, or cash flows.
Material interest-rate risk is concentrated in the , which uses floating-rate benchmarks plus a -based margin.
A hypothetical 10% change in interest rates would not materially affect financial position, results, or cash flows.
In addition to the risks and uncertainties discussed herein, particularly those discussed in the “Safe Harbor” Cautionary Statement and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2, see the risk factors set forth in Pa…
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In addition to the risks and uncertainties discussed herein, particularly those discussed in the “Safe Harbor” Cautionary Statement and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2, see the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 27, 2025 that have had no material changes.