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    How the Evolv Contract Manufacturing Deal at Plexus (PLXS) Has Changed Its Investment Story

    Simply Wall St·11/15/2025 23:21:05
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    • Earlier this month, Evolv Technologies Holdings Inc. announced it entered into a contract manufacturing partnership with Plexus Corp. to scale production and enhance global supply capabilities.
    • This collaboration combines Evolv's product expertise with Plexus' design and manufacturing strengths, creating new efficiencies and positioning both companies to access wider markets and improve operational resilience.
    • We will examine how this major manufacturing partnership can impact Plexus' global expansion plans and long-term growth outlook.

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    Plexus Investment Narrative Recap

    To own shares in Plexus, investors need to believe in the company’s ability to use its manufacturing expertise and global reach to capture sustained demand as key sectors expand and digitize. The new partnership with Evolv could support Plexus’s short-term catalyst, new program wins in high-growth electronics markets, by extending its reach and scale, but it does not remove underlying risks linked to customer concentration and cyclicality in sectors like semiconductors and aerospace, which remain the largest challenges for stability. One recent announcement most relevant to this partnership is Plexus's strong Q4 results, featuring higher year-over-year revenue and net income, which underpinned management’s confidence in guidance for further revenue expansion. This reinforces the company's momentum in operational scale and customer onboarding, a trend the Evolv collaboration could further support if executed efficiently. However, investors should also be aware that, despite these growth drivers, exposure to unpredictable order cycles from major clients can still...

    Read the full narrative on Plexus (it's free!)

    Plexus is projected to reach $4.8 billion in revenue and $202.1 million in earnings by 2028. This outlook assumes a 6.1% annual revenue growth rate and reflects an earnings increase of about $39 million from current earnings of $162.7 million.

    Uncover how Plexus' forecasts yield a $159.00 fair value, a 13% upside to its current price.

    Exploring Other Perspectives

    PLXS Earnings & Revenue Growth as at Nov 2025
    PLXS Earnings & Revenue Growth as at Nov 2025

    Only one member of the Simply Wall St Community forecasts a US$114.18 fair value for Plexus, suggesting a single viewpoint so far. In contrast, analyst coverage highlights ongoing risks around revenue volatility from program delays and customer dependence, prompting a careful look at differing outlooks and opportunities.

    Explore another fair value estimate on Plexus - why the stock might be worth 19% less than the current price!

    Build Your Own Plexus Narrative

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

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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.