Stock compensation rose 166.2%. That is the oddest number in Plexus's latest filing, but it is not the only one that makes the period harder to read at a glance.

For the three months ended July 4, revenue rose 28.1% from the comparable period to $1.3M, and gross profit climbed 27.2% to $131.4M. Operating income also increased, by 14.3% to $61.3M. Then the income statement took a step backward: net income fell 4.7% to $43.0M, and diluted EPS declined 3.7% to $1.58.

The surface reading is growth alongside lower net income and EPS. Plexus says some of that growth came from continued ramps of semiconductor wins and share gains from prior periods. The same disclosure also points to end-of-life products, weaker overall end-market demand, and a customer disengagement as offsets.

The company lays out those offsets this way:

"The increase was partially offset by a decrease of $16.1 million for end-of-life products, overall net decreased end-market demand and a decrease of $6.9 million due to a disengagement with a customer."

10-Q 2026-08-06; revenue

That is a useful qualification to a 28% sales increase. More revenue arrived, but some of the underlying demand was moving in the opposite direction, and one customer disengagement offset part of the increase. Plexus also said higher fixed costs and a shift in customer mix helped push cost of sales higher.

Cash offers another version of the same tension. The balance rose 32.2% year over year to $314.1M, while inventory increased 16.4% to $1.5B and accounts receivable grew 19.8% to $795.2M. Cash was not simply the residue of a stronger operating period.

Plexus disclosed that borrowing supplied a significant part of the increase:

"The increase was primarily attributable to net borrowings on the credit facility for the nine months ended July 4, 2026 of $132.0 million partially offset by $64.1 million in cash used to repurchase our common stock."

10-Q 2026-08-06; cash liquidity

The nine-month borrowing figure does not explain every movement in the three-month income statement, but it does change how the cash balance should be read. The company had more cash on hand while also carrying more inventory and receivables, and part of that liquidity came from the credit facility rather than earnings.

Investment added another demand on cash. Plexus said cash used in investing activities increased primarily because capital expenditures rose by $14.0M. Its free-cash-flow margin declined on the comparable period, while stock compensation grew much faster than revenue.

The financing detail has a recurring name attached to it: Plexus has disclosed HSBC as a lender in eight filings, including the latest 10-Q. That gives the credit-facility activity some continuity, without answering whether the current working-capital and investment needs are temporary or part of the operating pattern.

At the latest close, PLXS was $274.72, after a 0.7% one-day decline. The company's annual results show operating margin reaching 5.0% in fiscal 2025, up from 4.2% in fiscal 2024, providing additional margin context for the latest period. It is a growth period in which operating income rose, net income fell, and cash increased alongside borrowing and a larger balance-sheet build.

Plexus's next quarterly report will need to put the latest inventory, receivables, credit-facility borrowings, and capital spending beside the next three-month earnings result. How much of the reported growth remains after those cash demands are accounted for?