Flex (NASDAQ:FLEX) Announces Earnings Results

Flex (NASDAQ:FLEX) posted its earnings results on Wednesday. The technology company reported $1.00 EPS for the quarter, topping analysts’ consensus estimates of $0.90 by $0.10, FiscalAI reports. Flex had a net margin of 3.15% and a return on equity of 22.12%. The business had revenue of $7.93 billion for the quarter, compared to analysts’ expectations of $7.53 billion. During the same period in the previous year, the company posted $0.72 earnings per share. The business’s revenue for the quarter was up 20.6% compared to the same quarter last year. Flex updated its Q2 2027 guidance to 1.000-1.070 EPS and its FY 2027 guidance to 4.420-4.740 EPS.

Here are the key takeaways from Flex’s conference call:

• Strong first-quarter results: Revenue rose 21% year over year to $7.9 billion, while adjusted operating margin expanded 70 basis points and adjusted EPS increased 39% to a record $1.00.
• AI infrastructure demand remains robust: Cloud and Power Infrastructure revenue grew 35%, with management forecasting 65%–75% growth for fiscal 2027 and citing strong visibility, capacity investments, and program ramps in cloud, power, and cooling.
• Favorable outlook across growth markets: Communications, advanced networking, industrial energy infrastructure, robotics, and warehouse automation are expected to benefit from sustained data-center investment and longer-term secular trends, with the company also reporting share gains in some networking products.
• Free cash flow expectations were reduced: Incorporating costs associated with the planned spin-off, Flex lowered expected fiscal 2027 free-cash-flow conversion to approximately 40% from the previously stated 60%, while consumer-related end markets remain weak.
• Spin-off remains on track: Flex continues preparing to separate its Cloud and Power Infrastructure segment into a standalone company, targeting a tax-free spin-off in the first quarter of calendar 2027 and planning to provide further details at its November 10 Investor Day.

Flex Trading Down 9.0%

Shares of NASDAQ:FLEX traded down $10.15 during mid-day trading on Wednesday, hitting $103.13. The stock had a trading volume of 5,932,508 shares, compared to its average volume of 5,188,773. Flex has a 12-month low of $47.83 and a 12-month high of $166.86. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.87 and a current ratio of 1.36. The company has a market cap of $37.78 billion, a PE ratio of 44.24, a P/E/G ratio of 0.61 and a beta of 1.64. The company’s 50 day moving average is $140.84 and its 200-day moving average is $98.96.

Wall Street Analyst Weigh In

FLEX has been the subject of a number of research analyst reports. KeyCorp boosted their price target on Flex from $75.00 to $180.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Zacks Research lowered Flex from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Stifel Nicolaus raised their price target on Flex from $75.00 to $95.00 and gave the stock a “buy” rating in a report on Monday, April 20th. Freedom Capital upgraded Flex from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Barclays lifted their price objective on shares of Flex from $174.00 to $203.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $115.70.

Trending Headlines about Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Results exceeded expectations. Flex reported adjusted earnings of $1.00 per share versus the $0.90 consensus estimate, while revenue increased 20.6% year over year to $7.93 billion, above the $7.53 billion forecast. Adjusted operating margin was 6.7%, and GAAP operating margin was 4.9%. Flex fiscal 2027 first-quarter results
• Positive Sentiment: Growth outlook improved. Management raised its fiscal 2027 revenue guidance to $33.7 billion-$35.2 billion, above the $33.3 billion consensus. Second-quarter revenue guidance of $8.0 billion-$8.3 billion and EPS guidance of $1.00-$1.07 also exceed analyst expectations. Flex outlook raised
• Positive Sentiment: Cloud and Power Infrastructure momentum was highlighted. The company cited strength in its CPI segment, including accelerating growth in Cloud and Power Infrastructure, which supports the rationale for the planned SpinCo separation. Flex Q1 2027 earnings call transcript
• Neutral Sentiment: Spin-off preparations continue. Flex announced leadership teams for the existing company and SpinCo, which is expected to become an independent public company in the first calendar quarter of 2027. The appointments reduce execution uncertainty but also keep restructuring and separation risks in focus. Flex and SpinCo leadership announcement
• Negative Sentiment: Strong fundamentals may already be reflected in the valuation. Although earnings and revenue beat estimates, the stock’s elevated valuation and substantial prior gains may have encouraged a sell-the-news reaction. A technical analysis article identified potential support and higher earnings estimates, but this is a less durable catalyst than operating results. Flex technical outlook

Insiders Place Their Bets

In other news, COO Kwang Hooi Tan sold 8,981 shares of Flex stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $145.19, for a total transaction of $1,303,951.39. Following the transaction, the chief operating officer owned 248,546 shares in the company, valued at approximately $36,086,393.74. The trade was a 3.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael P. Hartung sold 7,269 shares of the firm’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $145.22, for a total value of $1,055,604.18. Following the sale, the insider owned 245,930 shares of the company’s stock, valued at $35,713,954.60. The trade was a 2.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 769,195 shares of company stock valued at $110,116,823 over the last quarter. 0.62% of the stock is owned by insiders.

Hedge Funds Weigh In On Flex

Hedge funds have recently modified their holdings of the stock. State Street Corp boosted its position in Flex by 38.0% during the second quarter. State Street Corp now owns 12,259,554 shares of the technology company’s stock valued at $611,997,000 after purchasing an additional 3,377,669 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Flex by 694,916.3% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,641,062 shares of the technology company’s stock valued at $159,573,000 after buying an additional 2,640,682 shares in the last quarter. Qube Research & Technologies Ltd increased its holdings in Flex by 118.1% in the third quarter. Qube Research & Technologies Ltd now owns 2,811,248 shares of the technology company’s stock worth $162,968,000 after buying an additional 1,522,308 shares during the last quarter. Amundi lifted its stake in Flex by 610.3% in the fourth quarter. Amundi now owns 1,293,865 shares of the technology company’s stock valued at $78,175,000 after acquiring an additional 1,111,708 shares during the last quarter. Finally, Bank of Nova Scotia bought a new stake in Flex in the fourth quarter worth approximately $51,328,000. 94.30% of the stock is owned by institutional investors and hedge funds.

Flex Company Profile

Flex (NASDAQ: FLEX), formerly known as Flextronics, is a global provider of electronics manufacturing services (EMS) and original design manufacturing (ODM). The company offers end-to-end product lifecycle solutions including product design and engineering, prototyping, volume manufacturing, testing, and aftermarket services. Its offerings extend into supply chain management, component sourcing, logistics and distribution, and advanced manufacturing capabilities such as automation and digital manufacturing to support customers from concept through end-of-life.

Flex serves a broad range of industries, including automotive, healthcare, industrial, communications, and consumer electronics, working with original equipment manufacturers (OEMs) and technology companies to accelerate time to market and manage complex supply chains.