Plexus slides after Q2 EPS miss; investors parse Q3 outlook and compensation impact
PLXS•Plexus shares are sliding after fiscal Q2 results that included record $1.164B revenue but GAAP EPS of $1.82 that fell short of expectations. Investors are also focusing on the company’s Q3 GAAP EPS outlook of $1.25–$1.41 and elevated stock-based compensation in the guide.
1. What’s moving the stock
Plexus (PLXS) is down sharply as investors react to its fiscal second-quarter earnings release on April 29, 2026. While the company posted record revenue, the quarter’s GAAP diluted EPS of $1.82 did not meet the level many investors were looking for, and attention has shifted to the company’s fiscal third-quarter guidance, where GAAP EPS is expected at $1.25 to $1.41.
2. The numbers investors are keying on
Plexus reported fiscal Q2 revenue of $1.164 billion, GAAP operating margin of 5.3%, and GAAP diluted EPS of $1.82. For fiscal Q3, Plexus guided to revenue of $1.200 billion to $1.250 billion and GAAP diluted EPS of $1.25 to $1.41; the company also provided non-GAAP EPS guidance of $2.02 to $2.18, which excludes stock-based compensation expense.
3. Why the market may be selling anyway
Even with strong top-line growth and upbeat commentary on program ramps and end-market demand, the near-term GAAP earnings guide is being weighed down by stock-based compensation and the gap between GAAP and non-GAAP results. After a strong run into earnings, the combination of an EPS miss and a GAAP outlook that looks softer than the headline revenue trajectory can trigger profit-taking and multiple compression in a high-priced name.
4. What to watch next
Key items for the next few sessions include any follow-through commentary from management on the earnings call, updates on margin trajectory as program ramps scale, and how investors model fiscal 2026 free cash flow after the company’s stated expectations. Traders will also watch whether the selloff stabilizes near prior breakout levels or continues if estimates reset lower across the Street.
