With today's earnings call, Todd will provide summary comments before turning the call over to Oliver and Pat for further details. Our robust and well-balanced new program win results across our solutions will support future growth, our team's dedication to innovating responsibly to help create a better world, and our strong financial performance. during fiscal 2026 to deliver revenue growth in excess of our end markets through new program ramps inclusive of market share gains, accelerated revenue growth positioning Plexus Revenue of $1.058 billion approached the high end of our guidance range, marking our third consecutive quarter of sequential growth.
Our team's ability to support late quarter demand upside from semicap and energy customers more than offset minor delays in new program transitions in our aerospace and defense market sector. Non-GAAP EPS of $2.14 substantially exceeded our guidance due to favorable discrete tax items, with inline non-GAAP operating margin of 5.8%. We expanded non-GAAP operating margin by 40 basis points and non-GAAP EPS over 30% in fiscal 2025 as compared to fiscal 2024. Finally, we delivered fiscal fourth quarter free cash flow of $97 million, resulting in fiscal 2025 free cash flow of $154 million, an amount that substantially exceeded our projections.
We have now generated $495 million of free cash flow over the past two fiscal years while deploying excess cash to reduce our borrowing and accelerate our share repurchase activity. For the fiscal fourth quarter, we secured 28 new manufacturing programs worth $274 million in revenue annually when fully ramped into production. For fiscal 2025, our team generated 141 manufacturing wins representing $941 million in annualized revenue. In addition, efforts to diversify our engineering solutions engagements successfully drove increased wins for fiscal 2025, including a record result in aerospace and defense.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Fiscal Q1 2026 | $1.05 billion - $1.09 billion |
| Non-GAAP operating margin | Fiscal Q1 2026 | 5.6% - 6.0% |
| Non-GAAP EPS | Fiscal Q1 2026 | $1.66 - $1.81 |
| Gross margin | Fiscal Q1 2026 | 9.8% - 10.1% (slightly above last quarter at midpoint) |
| Selling and administrative expense | Fiscal Q1 2026 | $51.5 million - $52.5 million (fairly consistent) |
| Effective tax rate | Fiscal Q1 2026 and fiscal 2026 | 16% - 18% (increasing due to global minimum tax) |
| Cash cycle days | Fiscal Q1 2026 | 66 - 70 days |
| Capital spending | Fiscal 2026 | $90 million - $110 million (consistent with fiscal 2025) |
| Free cash flow | Fiscal 2026 | approximately $100 million |
| Revenue growth | Fiscal 2026 | accelerating toward 9%-12% goal, growth in excess of end markets |
| Metric | YoY | Note |
|---|---|---|
| Aerospace and Defense revenue | essentially flat for fiscal 2025 | Down 6% sequentially in Q4 from minor new program ramp timing delays; full-year flat as commercial aerospace launch delays and inventory adjustments offset double-digit defense and space growth. |
| Healthcare Life Sciences revenue | up 5% for fiscal 2025 | Up 1% sequentially in Q4; full-year growth from imaging and monitoring subsector strength, new program ramps, and demand increases on previously ramped products. |
| Industrial revenue | flat for fiscal 2025 | Up 11% sequentially in Q4, exceeding guidance; full-year flat as low double-digit semi-cap growth offset industrial equipment and vehicle electrification reductions. |
| Non-GAAP operating margin | +40 basis points vs fiscal 2024 | Productivity gains, fixed cost leverage from higher revenue, and improved operating performance. |
| Non-GAAP EPS | +30% vs fiscal 2024 | Operating margin expansion and favorable tax items. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fiscal 2026 revenue growth | 9%-12% goal | accelerating momentum toward 9%-12% goal, growth in excess of end markets via new program ramps and share gains | Accelerating |
| Commercial aerospace (Boeing/Airbus) | awaiting recovery | fiscal 2026 outlook does not contemplate a Boeing/Airbus demand change despite regulatory approval to raise production rates; demand signal could appear within ~90 days | Flat, potential upside |
| Semi-cap | low teens growth in fiscal 2025 | expecting similar low-double-digit growth in fiscal 2026 on share gains amid low-single-digit WFE growth | Steady |
| Penang, Malaysia facility (Bridgeview) | coming online | near-term margin drag; expected to break even in one quarter and approach corporate profitability in two quarters | Ramping quickly |
| Automation and efficiency investments | warehouse automation piloted | AutoStore warehouse automation expanding to more sites, SMT line consolidation, material robots deploying to all sites by spring 2026, shifting CapEx from footprint to automation | Expanding |
| Energy / data center power | — | increased focus and a substantial award from a significant player; power generation and thermal management positioned as AI exposure | Growing |