Plexus reported GAAP diluted EPS of $1.51 for the fiscal first quarter ended January 3, 2026, and non-GAAP diluted EPS of $1.78, exceeding the Zacks Consensus Estimate by one cent. Q1 revenue reached $1.070 billion, up 10% year-over-year and 1% sequentially. Gross margin held at 9.9%, while non-GAAP operating margin improved to 5.8%, reflecting disciplined cost management and favorable product mix in core markets.

Revenue in the Healthcare/Life Sciences sector surged 25% year-over-year to $466 million, driven by new diagnostic and therapeutic device programs. Aerospace/Defense annualized program wins totaled $220 million, contributing to a 17% share of total revenue. Geographically, Asia-Pacific represented 57% of sales at $612 million, with the Americas and EMEA contributing $345 million and $118 million, respectively.

During Q1, Plexus secured 22 new manufacturing programs with an annualized revenue potential of $283 million once fully ramped. Notably, strategic awards in commercial space electronics underpinned record performance in the Aerospace/Defense sector. The company also repurchased $22.4 million of its common shares under its 2026 program, leaving $62.6 million available for future repurchases under the $100 million authorization.

For the fiscal second quarter ending April 4, 2026, Plexus forecasts revenue between $1.110 billion and $1.150 billion, implying 6% sequential and 15% year-over-year growth at the midpoint. Non-GAAP EPS is guided to $1.80–$1.95, excluding $0.27 of stock-based compensation. Q1 return on invested capital was 13.2%, 420 basis points above the 9.0% weighted average cost of capital, while the cash conversion cycle remained stable at 69 days despite working capital investments.