• Plexus Corp. has already reported first-quarter 2026 results, posting sales of US$1,069.85 million and net income of US$41.18 million, while issuing second-quarter revenue guidance of US$1.11 billion to US$1.15 billion and GAAP diluted EPS of US$1.53 to US$1.68.
• Alongside earnings that surpassed analyst expectations, Plexus completed a US$37.37 million share repurchase program and highlighted strength in Healthcare/Life Sciences, Aerospace and Defense, semiconductors, and energy markets.
• Next, we’ll examine how Plexus’s upbeat guidance and momentum in Healthcare/Life Sciences and Aerospace and Defense shape its investment narrative.

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What Is Plexus' Investment Narrative?

To own Plexus, you have to be comfortable with a company that is execution driven, priced on a full earnings multiple, and heavily exposed to complex, outsourced manufacturing in Healthcare/Life Sciences and Aerospace and Defense. The latest quarter reinforces that story: revenue and earnings beat expectations, guidance for the next quarter sits above prior consensus, and management is backing that confidence with a completed US$37.37 million buyback. Those positives, along with strong recent share price gains, support the near term catalyst of continued program ramps in its key end markets. At the same time, the premium valuation, relatively low return on equity and fresh insider selling from the chairman keep the risk side of the equation very real. Overall, the earnings news looks supportive rather than thesis changing.

However, the combination of a premium valuation and insider selling is something investors should note. Plexus' shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Exploring Other Perspectives

Investors in the Simply Wall St Community place Plexus’s fair value between US$114.18 and US$159 across three independent views. Set that against a premium earnings multiple and recent insider selling, and it is clear you are not seeing the whole picture by relying on one opinion.

Explore 3 other fair value estimates on Plexus - why the stock might be worth 43% less than the current price!

Build Your Own Plexus Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Plexus research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Plexus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Plexus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.