Flex Ltd. Ordinary Shares (FLEX) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 3, 2027 — estimated from last year’s reporting date.

Consensus is $1.12 EPS for Dec 2026 across 4 estimates, ranging $1.07 to $1.15.

FLEX Sep 2026

Reported Oct 28, 2026 · before the open

: 12.37%

: $0.97
: $1.09
: —
: $8.49B

Reported results

: $8.49B; from $6.80B
: 9.56%; from 9.02%
: $414.00M; from $296.00M
: 4.88%; from 4.35%
: $263.00M; from $199.00M
: $0.70; from $0.52

Highlights

Record sales and adjusted earnings: Q2 net sales rose 25% year over year to $8.491 billion; adjusted EPS reached a record $1.18, up 49%, with adjusted operating margin expanding 110 basis points to 7.1%.
EPS and expectations: The supplied consensus data lists EPS of $1.09 versus $0.97 expected, a 12.4% beat. Flex reported GAAP EPS of $0.70 and adjusted EPS of $1.18, distinct measures that do not match that consensus comparison directly.
Cloud and power led growth: Cloud and Power Infrastructure (CPI) revenue climbed 54% to $2.5 billion, with adjusted operating margin up 240 basis points to 10.7%; power margin reached approximately 16%.
All segments grew: Regulated Manufacturing Solutions (RMS) revenue increased 9% to $2.7 billion, and Integrated Technology Solutions (ITS) rose 22% to $3.3 billion; adjusted operating margins were 6.4% and 5.5%, respectively.
Fiscal 2027 outlook raised: Revenue guidance is now $34.9 billion–$35.9 billion, adjusted operating margin 7.6%–7.8%, and adjusted EPS $4.84–$5.16; midpoint EPS growth is 52%.
Spin-off and acquisition progress: Flex completed the EPC Power acquisition on October 14 and is advancing the planned spin-off of CPI as Axiom; the company expects EPC Power to be accretive in fiscal 2027.
Cash generation and investment: Operating cash flow was $501 million and free cash flow $261 million, down from $305 million a year earlier, including $61 million of spin-off cash costs; net capital spending was $240 million.

Analysis

Flex’s fiscal Q2 2027 delivered faster growth and record adjusted earnings, led by AI-related infrastructure demand. Revenue of $8.491 billion rose 25% from $6.804 billion a year earlier and 7% from $7.93 billion in Q1. GAAP operating income increased to $414 million from $296 million year over year and $392 million sequentially, while GAAP net income was $263 million, up from $199 million a year earlier but below Q1’s $285 million. GAAP EPS was $0.70 versus $0.52 a year ago; adjusted EPS rose 49% to $1.18 from $0.79. The supplied consensus comparison reports $1.09 EPS against $0.97 expected, though the release’s reported GAAP and adjusted figures are $0.70 and $1.18.

The main drivers were CPI’s 54% growth and margin expansion, broad-based growth across RMS and ITS, and an improved full-year outlook. Flex raised fiscal 2027 revenue guidance to $34.9 billion–$35.9 billion and adjusted EPS to $4.84–$5.16, while projecting CPI growth of 75%–85%. The quarter also brings the planned Axiom separation closer, with the Form 10 filed and EPC Power acquired. Cash flow was more mixed: free cash flow fell year over year to $261 million amid higher capital spending and separation costs.

Growth and earnings

Revenue growth translated into higher operating profit, although the gap between GAAP and adjusted results was unusually wide. Flex’s $607 million of adjusted operating income compares with $414 million GAAP operating income; the non-GAAP reconciliation adds $110 million of legal and other costs, primarily spin-off and acquisition expenses, alongside amortization, stock compensation, and restructuring.

Year-over-year: Sales increased 24.8% to $8.491 billion; GAAP operating income rose 39.9% to $414 million, and net income increased 32.2% to $263 million.
Sequentially: Sales rose from $7.93 billion and operating income from $392 million, while net income eased from $285 million and GAAP EPS from $0.76 to $0.70.
Margins and adjusted EPS: Adjusted gross margin improved 60 basis points year over year to 9.9%; adjusted operating margin increased 110 basis points to 7.1%, and adjusted EPS advanced from $0.79 to $1.18.

CPI growth and margins

CPI was the standout business, with demand spanning power, cloud and cooling. Its $2.5 billion of revenue grew 54% year over year, and adjusted operating income was $268 million. Management attributed margin gains to power growth, favorable mix and pricing, volume leverage, and scaling prior investments. Power margins were approximately 16%, up roughly 550 basis points year over year. Flex also said it is expanding custom rack integration, aftermarket services and cooling offerings; cooling remains a developing capability.

RMS and ITS trends

RMS: Revenue grew 9% to $2.7 billion and adjusted operating margin reached 6.4%, up 50 basis points year over year. Industrial strength, particularly energy infrastructure and robotics, supported results; management also cited steady healthcare and automotive performance.
ITS: Revenue increased 22% to $3.3 billion and adjusted operating margin was 5.5%, up 20 basis points. Communications, especially advanced networking, drove growth, partly offset by consumer-related weakness.
Forward trend: Management expects both businesses to grow and expand margins for the year, while noting stronger year-ago comparisons in the second half and incremental weakness in lifestyle markets.

Raised fiscal outlook

Flex lifted its full-year fiscal 2027 outlook across revenue, margins and adjusted EPS. Revenue guidance midpoint increased by about $950 million from the prior range; management estimated roughly half of that increase reflected underlying improvement and roughly half the EPC Power acquisition. The revised outlook includes the acquisition and does not reflect the planned spin-off.

Full year: Revenue of $34.9 billion–$35.9 billion, or 27% growth at the midpoint; adjusted operating margin of 7.6%–7.8%; adjusted EPS of $4.84–$5.16, up 52% at the midpoint.
Segment assumptions: CPI revenue growth of 75%–85% and adjusted operating margin of 11.5%–11.7%; combined RMS and ITS revenue growth of 8%–11% and adjusted margin of 5.9%–6.1%.
Next quarter: Q3 revenue guidance is $8.87 billion–$9.17 billion, adjusted operating income $685 million–$715 million, and adjusted EPS $1.19–$1.25. CPI revenue is expected to increase 105%–115% year over year.

Axiom separation and EPC

The planned spin-off of Cloud and Power Infrastructure, now branded Axiom, remained a central strategic focus. Axiom filed its Form 10, and Flex announced expected leadership teams for both companies. Flex completed its EPC Power acquisition on October 14, adding capabilities in critical power and complementing work on 800-volt systems and solid-state transformers. Management expects the deal to be accretive in fiscal 2027. Flex also disclosed an agreement to sell $2 billion of Axiom convertible preferred stock; proceeds are expected to repay approximately $2 billion of the $4.4 billion in debt incurred for the acquisition. Elevated interest expense is expected in the near term until that transaction is completed.

Cash flow and capacity

Cash generation: Operating cash flow was $501 million, compared with $453 million a year earlier. Free cash flow was $261 million versus $305 million, including $61 million of separation-related cash costs.
Investment: Net capital expenditures were $240 million in Q2. Flex expects fiscal-year CapEx of $1.5 billion–$1.6 billion, with roughly two-thirds directed to CPI; it expects free-cash-flow conversion of about 40%.
Working capital: Inventory increased 13% sequentially and 39% year over year as the business supported higher-growth programs. Inventory net of working-capital advances was 60 days, up five days year over year.

Flex Ltd. Ordinary Shares

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