Plexus (PLXS) Delivers Q1 Beat: EPS Outpaces Consensus Amid Market Momentum

Plexus Corp. posted quarterly earnings of $1.78 per share, surpassing the Zacks Consensus Estimate of $1.77. This represents a 0.57% upside surprise compared to projections. Year-over-year, the company improved from $1.73 EPS, signaling continued profitability growth. Notably, Plexus has exceeded consensus EPS estimates in three of the last four quarters, demonstrating consistent operational strength in the competitive electronics manufacturing services sector.

The company reported revenues of $1.07 billion for the quarter ended December 2025. While this exceeded the prior-year period’s $976.12 million—a healthy 9.6% increase—it narrowly missed the consensus estimate by 0.11%. This mixed revenue picture reflects the challenging demand environment that many in the sector continue to navigate. Over four quarters, Plexus has managed to beat revenue expectations just once, indicating that topline predictability remains an area to monitor.

Strong Earnings Performance Masks Softer Revenue Reality for Plexus

The divergence between Plexus’ earnings beat and revenue miss reveals an important dynamic: the company is managing profitability well through operational efficiency, even as market demand growth remains constrained. The quarter’s strong EPS performance builds on an impressive track record—one quarter prior, Plexus surprised analysts with earnings of $2.14 per share against expectations of $1.84, delivering a remarkable 16.3% upside.

This operational discipline has resonated with investors. Plexus shares have appreciated approximately 18% year-to-date, substantially outpacing the S&P 500’s 1.9% gain. The outperformance reflects market confidence in management’s ability to drive profitability despite industry headwinds.

Plexus Stock Momentum: What the Zacks Rank Reveals

The sustainability of Plexus’ recent price appreciation depends heavily on forward-looking indicators and management guidance. The Zacks Rank system, which has historically outperformed major market indices, currently rates Plexus at #3 (Hold). This neutral stance suggests the stock is expected to move in line with the broader market in the near term, rather than meaningfully outperform or underperform.

Before the earnings announcement, analyst estimate revisions for Plexus showed a mixed trend. Following this report, the consensus outlook suggests modest near-term consolidation before potential new catalysts emerge. The current consensus projects $1.79 EPS on $1.08 billion in revenues for the coming quarter, with full-year expectations at $7.49 EPS on $4.35 billion in revenues.

The Electronics - Manufacturing Services industry, where Plexus competes, currently ranks in the top 23% of Zacks’ 250+ industries—a positive signal given that top-performing sectors typically drive superior stock returns. Investors should recognize that Plexus’ future performance will be influenced not only by company-specific execution but also by broader industry tailwinds or headwinds.

What Investors Should Know About Plexus Going Forward

As investors evaluate Plexus for their portfolios, several factors warrant attention. First, management’s commentary on the earnings call will be critical—this guidance often provides clarity on demand trends, margin sustainability, and capital allocation plans that determine subsequent stock movement.

Second, the revision trend for analyst estimates will be telling. Empirical research demonstrates a strong correlation between near-term stock performance and the direction of earnings estimate revisions. If analysts raise estimates post-earnings, it could signal upside potential; conversely, downgrades would suggest headwinds ahead.

Third, consider the competitive context. Applied Materials (AMAT), a peer in the broader Computer and Technology sector, reported results for its quarter ended January 2026, posting earnings of approximately $2.02 per share—reflecting the broader pressure on chipmaking equipment suppliers amid moderating demand. This comparison underscores the importance of assessing whether Plexus’ relative resilience is company-specific or industry-wide.

For investors seeking directional insight, earnings estimate trends will be pivotal. Plexus currently trades at a Zacks Rank #3 (Hold), suggesting fair value relative to current expectations. Whether the stock can re-accelerate will likely hinge on upward estimate revisions driven by improving demand or margin expansion surprises in coming quarters.