Companies /Technology

Flex Ltd

NASDAQ: FLEX Electronic Components
$113.38
▼ $1.93 (−1.67%) today
Markets open · 11:14am ET

Q2 2026 Earnings

Reported Oct 29, 2025, 8:10am ET · SEC source
$0.79
Beat +4.35%
EPS · est. $0.76
$6.8B
Beat +1.46%
Revenue · est. $6.7B
−13.4%
Trailing market
FLEX vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%+6%Oct 29Oct 30report 8:10am ETearnings−0.9%+2.4%
−3%0+3%+6%Oct 29Oct 30earnings−0.9%+2.4%
FLEX +2.4%S&P 500 −0.9%
−3%0+3%+6%Oct 29Oct 30report 8:10am ETearnings−1.1%+2.4%
−3%0+3%+6%Oct 29Oct 30earnings−1.1%+2.4%
FLEX +2.4%NASDAQ −1.1%
−3%0+3%+6%Oct 28Nov 5report 8:10am ETearnings−1.7%+5.8%
−3%0+3%+6%Oct 28Nov 5earnings−1.7%+5.8%
FLEX +5.8%S&P 500 −1.7%
−4%0+4%+8%Oct 28Nov 5report 8:10am ETearnings−2.0%+5.8%
−4%0+4%+8%Oct 28Nov 5earnings−2.0%+5.8%
FLEX +5.8%NASDAQ −2.0%
+2.86%
Day of report
−3.19%
Next session
−1.27%
One week
−14.45%
30 days

S&P 500 over the same 30 days: −1.04%.

Did FLEX Beat Earnings? Q2 2026 Results

Flex posted a strong second quarter of fiscal 2026, with adjusted EPS of $0.79 beating the $0.76 consensus by 4.35% and revenue of $6.80 billion coming in 1.46% ahead of estimates, up 4.0% from the year-ago period. The standout driver was surging demand in the company's Power and Cloud businesses, where data center buildout tied to AI infrastructure lifted results to the top end of prior guidance and pushed adjusted operating margin to 6.0% for the fourth consecutive quarter at or above that level. Free cash flow grew to $305.00 million from $219.00 million a year earlier, underscoring the operational discipline management has emphasized as it shifts the portfolio toward higher-margin work. The quarter did carry a notable charge, as a missile strike on Flex's Mukachevo, Ukraine facility resulted in a $41.00 million GAAP hit, reducing reported EPS by roughly $0.11. Looking ahead, Flex raised its full-year fiscal 2026 guidance, now targeting net sales of $26.70 billion to $27.30 billion and adjusted EPS of $3.09 to $3.17, reflecting continued confidence in its data center positioning.

Key Takeaways
  • Strong data center demand in Power and Cloud businesses
  • Continued disciplined execution driving margin expansion
  • Portfolio shift toward higher-margin businesses
  • Fourth consecutive quarter of adjusted operating margin at or above 6.0%

“We achieved a record Q2, and we continue to execute with discipline and deliver value for customers across business segments. As we continue to shift our portfolio toward higher margin businesses, we remain confident in our data center position and ability to offer complete, integrated solutions to the world's leading technology companies as they navigate the AI era.”

Flex CEO, on the earnings call

Forward Guidance & Outlook

Flex raised its full-year fiscal 2026 guidance due to strong data center demand in its Power and Cloud businesses and continued disciplined execution. Full-year net sales are now expected at $26.7 billion to $27.3 billion, adjusted operating margin between 6.2% and 6.3%, and adjusted EPS of $3.09 to $3.17. For Q3 FY2026, the company guides net sales of $6.65 billion to $6.95 billion, adjusted operating income of $405 million to $435 million, and adjusted EPS of $0.74 to $0.80, with an adjusted income tax rate of 21% and weighted average shares outstanding of 377 million.

FLEX YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$2.0B$4.0B$6.0B$6.5B$6.8BRevenue$531.0M$614.0MGross Profit$297.0M$296.0MOperating Income$214.0M$199.0MNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.