Flex Ltd
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did FLEX Beat Earnings? Q4 2026 Results
Flex delivered a standout fourth quarter for fiscal 2026, posting adjusted EPS of $0.93 against a consensus estimate of $0.88, a beat of 6.08%, while revenue of $7.48 billion cleared the $6.97 billion estimate by 7.35% and rose 16.9% year over year. The primary engine behind the quarter was explosive demand within the company's Cloud and Power Infrastructure segment, which serves AI data centers and mission-critical infrastructure, a business so strategically distinct that Flex's board unanimously approved spinning it off as an independent publicly traded company, targeted to close in Q1 calendar 2027. The spin reinforces rather than obscures the strength of the remaining business; post-separation Flex will focus on healthcare, industrial, automotive, and regulated manufacturing markets, with management guiding for full-year FY2027 net sales of $32.30 billion to $33.80 billion and adjusted EPS of $4.21 to $4.51, representing roughly 32% growth at the midpoint. Analyst sentiment following the announcement has leaned constructive, with some valuation models suggesting the stock remains undervalued even after its recent appreciation.
- Disciplined execution and clear strategy
- Targeted acquisitions and capital investments aligned to long-term growth
- Sixth consecutive quarter with adjusted operating margin of 6% or greater
- 17% year-over-year Q4 revenue growth and 8% full-year revenue growth
“Our strong finish to FY 2026 reflects disciplined execution and a clear strategy, supported by targeted acquisitions and capital investments aligned to Flex's long-term growth opportunities.”
Flex CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2027, Flex guides net sales of $7.35–$7.65 billion (14% growth at midpoint), adjusted operating income of $469–$499 million, and adjusted EPS of $0.86–$0.92 (24% growth at midpoint), with an adjusted tax rate of 21% and approximately 374 million weighted average shares. For full-year FY2027, the company guides net sales of $32.3–$33.8 billion (18% growth at midpoint), adjusted operating margin of 7.0%–7.1%, and adjusted EPS of $4.21–$4.51 (32% growth at midpoint). FY2027 guidance reflects the full consolidated company and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment. SpinCo is targeted to generate approximately 65%–75% revenue growth in FY2027, accelerating to 80%+ in FY2028. Post-spin Flex is expected to deliver low-to-mid-single-digit growth with continued margin expansion.
FLEX YoY Financials
Figures from SEC filings and company reports. Not investment advice.