plxs-20260404

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________________________________________________

(Mark One)


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2026


☐						TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number 001-14423

____________________________________________________________________________________________________________________________________

PLEXUS CORP.

(Exact name of registrant as specified in charter)

____________________________________________________________________________________________________________________________________


Wisconsin						39-1344447
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)

One Plexus Way

Neenah, Wisconsin 54956

(Address of principal executive offices) (Zip Code)

Telephone Number (920) 969-6000

(Registrant’s telephone number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	PLXS	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2026, there were 26,756,421 shares of common stock outstanding.

Table of Contents

PLEXUS CORP.

TABLE OF CONTENTS

April 4, 2026



PART I. FINANCIAL INFORMATION			3
ITEM 1. FINANCIAL STATEMENTS (Unaudited)			3
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Shareholders' Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			20
"Safe Harbor" Cautionary Statement Under the Private Securities Litigation Reform Act of 1995			20
Overview			20
Results of Operations			21
Liquidity and Capital Resources			25
Disclosure About Critical Accounting Estimates			28
New Accounting Pronouncements			28
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			28
ITEM 4. CONTROLS AND PROCEDURES			29
PART II. OTHER INFORMATION			31
ITEM 1A. Risk Factors			31
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			31
ITEM 5. Other Information			31
ITEM 6. Exhibits			32
SIGNATURES			33

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PLEXUS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

(Unaudited)


	Three Months Ended				Six Months Ended
	April 4, 2026		March 29, 2025		April 4, 2026		March 29, 2025
Net sales	$	1,163,757	$	980,170	$	2,233,609	$	1,956,292
Cost of sales	1,044,581		882,419		2,008,295		1,757,849
Gross profit	119,176		97,751		225,314		198,443
Selling and administrative expenses	57,339		48,960		109,013		98,109
Restructuring and other charges, net	—		—		—		4,683
Operating income	61,837		48,791		116,301		95,651
Other income (expense):
Interest expense	(3,422)		(3,137)		(6,310)		(6,691)
Interest income	812		871		1,796		2,105
Miscellaneous, net	(1,350)		(1,502)		(2,878)		(2,548)
Income before income taxes	57,877		45,023		108,909		88,517
Income tax expense	8,068		5,950		17,918		12,177
Net income	$	49,809	$	39,073	$	90,991	$	76,340
Earnings per share:
Basic	$	1.86	$	1.44	$	3.40	$	2.82
Diluted	$	1.82	$	1.41	$	3.32	$	2.75
Weighted average shares outstanding:
Basic	26,757		27,109		26,762		27,098
Diluted	27,310		27,662		27,369		27,726
Comprehensive income:
Net income	$	49,809	$	39,073	$	90,991	$	76,340
Other comprehensive (loss) income:
Derivative instrument and other fair value adjustments	(6,888)		863		(3,718)		(15,893)
Foreign currency translation adjustments	(3,682)		8,885		(2,889)		(8,475)
Other comprehensive (loss) income	(10,570)		9,748		(6,607)		(24,368)
Total comprehensive income	$	39,239	$	48,821	$	84,384	$	51,972

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PLEXUS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(Unaudited)


	April 4, 2026		September 27, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	303,133	$	306,464
Restricted cash	48		294
Accounts receivable, net of allowances of $2,380 and $2,381, respectively	702,339		656,573
Contract assets	160,382		150,654
Inventories	1,373,732		1,229,839
Prepaid expenses and other	97,569		54,969
Total current assets	2,637,203		2,398,793
Property, plant and equipment, net	535,171		546,052
Operating lease right-of-use assets	68,632		72,863
Deferred income taxes	91,663		91,349
Other assets	28,300		28,053
Total non-current assets	723,766		738,317
Total assets	$	3,360,969	$	3,137,110

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	143,112	$	45,793
Accounts payable	851,909		726,597
Advanced payments from customers	565,346		575,850
Accrued salaries and wages	90,924		109,076
Other accrued liabilities	60,989		61,367
Total current liabilities	1,712,280		1,518,683
Long-term debt and finance lease obligations, net of current portion	91,034		91,987
Long-term operating lease liabilities	25,769		29,422
Deferred income taxes	5,155		6,000
Other liabilities	36,931		36,430
Total non-current liabilities	158,889		163,839
Total liabilities	1,871,169		1,682,522
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued or outstanding	—		—
Common stock, $0.01 par value, 200,000 shares authorized, 54,861 and 54,670 shares issued, respectively, and 26,757 and 26,828 shares outstanding, respectively	549		547
Additional paid-in capital	689,909		695,653
Common stock held in treasury, at cost, 28,104 and 27,842 shares, respectively	(1,298,881)		(1,255,451)
Retained earnings	2,087,019		1,996,028
Accumulated other comprehensive income	11,204		17,811
Total shareholders’ equity	1,489,800		1,454,588
Total liabilities and shareholders’ equity	$	3,360,969	$	3,137,110

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PLEXUS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands)

(Unaudited)


	Three Months Ended				Six Months Ended
	April 4, 2026		March 29, 2025		April 4, 2026		March 29, 2025
Common stock - shares outstanding
Beginning of period	26,713		27,062		26,828		27,122
Exercise of stock options and vesting of other share-based awards	153		146		191		171
Treasury shares purchased	(109)		(86)		(262)		(171)
End of period	26,757		27,122		26,757		27,122

Total stockholders' equity, beginning of period	$	1,481,063	$	1,319,069	$	1,454,588	$	1,324,825
Common stock - par value
Beginning of period	547		545		547		545
Exercise of stock options and vesting of other share-based awards	2		2		2		2
End of period	549		547		549		547
Additional paid-in capital
Beginning of period	699,374		684,555		695,653		680,638
Share-based compensation expense	7,920		7,781		15,685		14,771
Exercise of stock options and vesting of other share-based awards, including tax withholding	(17,385)		(11,456)		(21,429)		(14,529)
End of period	689,909		680,880		689,909		680,880
Treasury stock
Beginning of period	(1,277,842)		(1,202,939)		(1,255,451)		(1,190,115)
Treasury shares purchased	(21,039)		(12,542)		(43,430)		(25,366)
End of period	(1,298,881)		(1,215,481)		(1,298,881)		(1,215,481)
Retained earnings
Beginning of period	2,037,210		1,860,410		1,996,028		1,823,143
Net income	49,809		39,073		90,991		76,340
End of period	2,087,019		1,899,483		2,087,019		1,899,483
Accumulated other comprehensive income (loss)
Beginning of period	21,774		(23,502)		17,811		10,614
Other comprehensive (loss) income	(10,570)		9,748		(6,607)		(24,368)
End of period	11,204		(13,754)		11,204		(13,754)
Total stockholders' equity, end of period	$	1,489,800	$	1,351,675	$	1,489,800	$	1,351,675

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PLEXUS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)


	Six Months Ended
	April 4, 2026		March 29, 2025
Cash flows from operating activities
Net income	$	90,991	$	76,340
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	38,493		38,925
Share-based compensation expense and related charges	15,685		14,771


Other, net	(88)		(6,125)
Changes in operating assets and liabilities, excluding impacts of currency:
Accounts receivable	(47,335)		9,100
Contract assets	(9,770)		(15,624)
Inventories	(145,413)		25,310
Other current and non-current assets	(45,965)		(240)
Accrued income taxes payable	(7,006)		(12,390)
Accounts payable	146,673		70,624
Advanced payments from customers	(9,945)		(95,297)
Other current and non-current liabilities	(13,240)		(15,064)
Cash flows provided by operating activities	13,080		90,330
Cash flows from investing activities
Payments for property, plant and equipment	(47,650)		(46,726)
Other, net	(29)		(28)
Cash flows used in investing activities	(47,679)		(46,754)
Cash flows from financing activities
Borrowings under debt agreements	384,500		127,000
Payments on debt and finance lease obligations	(289,863)		(165,202)
Repurchases of common stock	(43,430)		(25,366)

Payments related to tax withholding for share-based compensation	(21,426)		(14,527)
Cash flows provided by (used in) financing activities	29,781		(78,095)
Effect of exchange rate changes on cash and cash equivalents	1,241		(2,381)
Net decrease in cash and cash equivalents and restricted cash	(3,577)		(36,900)
Cash and cash equivalents and restricted cash:
Beginning of period	306,758		347,462
End of period	$	303,181	$	310,562

The accompanying notes are an integral part of these condensed consolidated financial statements.

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PLEXUS CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED APRIL 4, 2026 AND MARCH 29, 2025

(Unaudited)

1. Basis of Presentation

The accompanying Condensed Consolidated Financial Statements included herein have been prepared by Plexus Corp. and its subsidiaries (together “Plexus” or the “Company”) without audit and pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The accompanying Condensed Consolidated Financial Statements reflect all adjustments, which include normal recurring adjustments necessary for the fair statement of the condensed consolidated financial position of the Company as of April 4, 2026 and September 27, 2025, the results of operations and shareholders' equity for the three and six months ended April 4, 2026 and March 29, 2025, and the cash flows for the same six month periods.

The Company’s fiscal year ends on the Saturday closest to September 30. The Company also uses a "4-4-5" weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. The first quarter of fiscal 2026 included 14 weeks while all other fiscal quarters presented herein included 13 weeks.

Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s 2025 Annual Report on Form 10-K.

The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and notes thereto. The full extent to which current global events and economic conditions will impact the Company's business and operating results will depend on future developments that are highly uncertain and cannot be accurately predicted. The Company has considered information available as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates.

Recently Issued Accounting Pronouncements Not Yet Adopted:

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09 Income Taxes (Topic 740), which requires enhanced disclosures for income taxes. Early adoption is permitted. The Company intends to adopt the guidance when it becomes effective in the fourth quarter of fiscal 2026. The Company is currently evaluating the impact that the updated standard will have on our financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03 Disaggregation of Income Statement Expense (Subtopic 220-40), which requires disaggregated information about certain income statement expense line items. The guidance is effective for the Company beginning in fiscal 2028. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes references to project stages, and requires capitalization of software costs to begin when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the intended function. The guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. The Company is currently evaluating the impact the adoption of the standard will have on our financial statement disclosures.

The Company does not believe that any other recently issued accounting standards will have a material impact on its Consolidated Financial Statements or apply to its operations.

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2. Inventories

Inventories as of April 4, 2026 and September 27, 2025 consisted of the following (in thousands):


	April 4, 2026		September 27, 2025
Raw materials	$	1,186,396	$	1,069,064
Work-in-process	87,845		57,988
Finished goods	99,491		102,787
Total inventories	$	1,373,732	$	1,229,839

In certain circumstances, per contractual terms, customer deposits are received by the Company to offset inventory risks. The total amount of customer deposits related to inventory are included within advanced payments from customers on the accompanying Condensed Consolidated Balance Sheets. As of April 4, 2026 and September 27, 2025, these customer deposits totaled $384.2 million and $413.7 million, respectively.

3. Debt, Finance Lease and Other Financing Obligations

Debt and finance lease obligations as of April 4, 2026 and September 27, 2025, consisted of the following (in thousands):


	April 4, 2026		September 27, 2025
4.22% Senior Notes, due June 15, 2028	$	50,000	$	50,000
Borrowings under the Credit Facility	137,000		40,000
Finance lease and other financing obligations	47,499		48,274
Unamortized deferred financing fees	(353)		(494)
Total obligations	234,146		137,780
Less: current portion	(143,112)		(45,793)
Long-term debt, finance lease and other financing obligations, net of current portion	$	91,034	$	91,987

As of April 4, 2026, the Company was in compliance with covenants under all debt agreements.

During the six months ended April 4, 2026, the highest daily borrowing under the Company's 5-year senior unsecured revolving credit facility (referred to as the "Credit Facility") was $187.0 million; the average daily borrowings were $104.8 million. During the six months ended March 29, 2025, the highest daily borrowing was $52.0 million; the average daily borrowings were $34.8 million.

The fair value of the Company’s debt, excluding finance lease and other financing obligations, was $186.0 million and $89.0 million as of April 4, 2026 and September 27, 2025, respectively. The carrying value of the Company's debt, excluding finance lease and other financing obligations, was $187.0 million and $90.0 million as of April 4, 2026 and September 27, 2025, respectively. If measured at fair value in the financial statements, the Company's debt would be classified as Level 1 in the fair value hierarchy. Refer to Note 4, "Derivatives and Fair Value Measurements," for further information regarding the Company's fair value calculations and classifications.

4. Derivatives and Fair Value Measurements

All derivatives are recognized in the accompanying Condensed Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes.

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The Company designates some foreign currency exchange contracts as cash flow hedges of forecasted foreign currency expenses. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive income" in the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates that $6.4 million of unrealized gains, net of tax, related to cash flow hedges will be reclassified from other comprehensive (loss) income into earnings. Changes in the fair value of the non-designated derivatives related to recognized foreign currency denominated assets and liabilities are recorded in "Miscellaneous, net" in the accompanying Condensed Consolidated Statements of Comprehensive Income.

The Company enters into forward currency exchange contracts for its operations in certain jurisdictions in the AMER and APAC segments on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $276.0 million as of April 4, 2026, and a notional value of $249.4 million as of September 27, 2025. These forward currency contracts fix the exchange rates for the settlement of future foreign currency obligations that have yet to be realized. The total fair value of the forward currency exchange contracts was a $6.4 million asset as of April 4, 2026, and a $10.1 million asset as of September 27, 2025.

The Company had additional forward currency exchange contracts outstanding with a notional value of $150.8 million as of April 4, 2026, and a notional value of $172.8 million as of September 27, 2025. The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Condensed Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income. The total fair value of these derivatives was a $2.2 million liability as of April 4, 2026, and a less than $0.1 million liability as of September 27, 2025.

The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements:

Fair Values of Derivative Instruments (in thousands)

Derivative Assets

Derivative Liabilities

April 4,
2026

September 27,
2025

April 4,
2026

September 27,
2025

Derivatives designated as hedging instruments

Balance sheet
classification

Fair Value

Balance sheet
classification

Fair Value

Foreign currency forward contracts

Prepaid expenses and other

6,895

10,141

Other accrued liabilities

483

Fair Values of Derivative Instruments (in thousands)

Derivative Assets

Derivative Liabilities

April 4,
2026

September 27,
2025

April 4,
2026

September 27,
2025

Derivatives not designated as hedging instruments

Balance sheet
classification

Fair Value

Balance sheet
classification

Fair Value

Foreign currency forward contracts

Prepaid expenses and other

476

579

Other accrued liabilities

2,662

599

The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income ("OCI") (in thousands)

for the Three Months Ended

Derivatives in cash flow hedging relationships

Amount of Gain Recognized in OCI on Derivatives

April 4, 2026

March 29, 2025

Foreign currency forward contracts

1,494

1,854

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Derivative Impact on Gain Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands)

for the Three Months Ended

Derivatives in cash flow hedging relationships

Classification of Gain Reclassified from Accumulated OCI into Income

Amount of Gain Reclassified from Accumulated OCI into Income

April 4, 2026

March 29, 2025

Foreign currency forward contracts

Cost of sales

7,878

896

Foreign currency forward contracts

Selling and administrative expenses

504

Derivatives not designated as hedging instruments

Location of (Loss) Gain Recognized on Derivatives in Income

Amount of (Loss) Gain on Derivatives Recognized in Income

April 4, 2026

March 29, 2025

Foreign currency forward contracts

Miscellaneous, net

(606)

736

The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income ("OCI") (in thousands)

for the Six Months Ended

Derivatives in cash flow hedging relationships

Amount of Gain (Loss) Recognized in OCI on Derivatives

April 4, 2026

March 29, 2025

Foreign currency forward contracts

9,918

(12,449)

Derivative Impact on Gain Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands)

for the Six Months Ended

Derivatives in cash flow hedging relationships

Classification of Gain Reclassified from Accumulated OCI into Income

Amount of Gain Reclassified from Accumulated OCI into Income

April 4, 2026

March 29, 2025

Foreign currency forward contracts

Cost of sales

12,892

3,199

Foreign currency forward contracts

Selling and administrative expenses

744

245

Derivatives not designated as hedging instruments

Location of Gain (Loss) Recognized on Derivatives in Income

Amount of Gain (Loss) on Derivatives Recognized in Income

April 4, 2026

March 29, 2025

Foreign currency forward contracts

Miscellaneous, net

1,586

(3,478)

Fair Value Measurements:

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are:

Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.

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The following table lists the fair values of the Company’s derivatives as of April 4, 2026 and September 27, 2025, by input level:


Fair Value Measurements Using Input Levels Asset (in thousands)
Fiscal period ended April 4, 2026	Level 1		Level 2		Level 3		Total
Derivatives
Foreign currency forward contracts	$	—	$	4,226	$	—	$	4,226

Fiscal period ended September 27, 2025
Derivatives
Foreign currency forward contracts	$	—	$	10,110	$	—	$	10,110

The fair value of foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency.

5. Income Taxes

Income tax expense for the three and six months ended April 4, 2026 was $8.1 million and $17.9 million, respectively, compared to $6.0 million and $12.2 million for the three and six months ended March 29, 2025, respectively.

The effective tax rates for the three and six months ended April 4, 2026 were 13.9% and 16.5%, respectively, compared to the effective tax rates of 13.2% and 13.8% for the three and six months ended March 29, 2025, respectively. The effective tax rates for the three and six months ended April 4, 2026 were higher than the effective tax rates for the three and six months ended March 29, 2025 primarily due to the implementation of the global minimum tax across several jurisdictions in which the Company operates.

The amount of unrecognized tax benefits recorded for uncertain tax positions decreased by $0.8 million for the three months ended April 4, 2026. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three and six months ended April 4, 2026 were $0.1 million and $0.2 million, respectively.

Within the next 12 months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits by approximately $2.8 million, either because the Company’s tax positions are sustained on audit, the Company agrees to their disallowance or the statute of limitations closes.

The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended April 4, 2026, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA and APAC segments and a partial valuation allowance against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to record a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized.

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6. Earnings Per Share

The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share for the three and six months ended April 4, 2026 and March 29, 2025 (in thousands, except per share amounts):


	Three Months Ended				Six Months Ended
	April 4, 2026		March 29, 2025		April 4, 2026		March 29, 2025
Net income	$	49,809	$	39,073	$	90,991	$	76,340
Basic weighted average common shares outstanding	26,757		27,109		26,762		27,098
Dilutive effect of share-based awards and options outstandi

SEC Form 10-Q filed by Plexus Corp.