Flex (NASDAQ:FLEX) Announces Quarterly Earnings Results

Flex (NASDAQ:FLEX) issued its quarterly earnings results on Wednesday. The technology company reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.90 by $0.10, FiscalAI reports. Flex had a return on equity of 22.12% and a net margin of 3.15%.The firm had revenue of $7.93 billion during the quarter, compared to the consensus estimate of $7.53 billion. During the same quarter in the prior year, the business posted $0.72 earnings per share. Flex’s revenue for the quarter was up 20.6% on a year-over-year basis. 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 Stock Performance

FLEX traded down $9.37 during trading on Wednesday, hitting $103.91. The stock had a trading volume of 4,472,451 shares, compared to its average volume of 5,180,047. The company has a current ratio of 1.36, a quick ratio of 0.87 and a debt-to-equity ratio of 0.73. Flex has a 12 month low of $47.83 and a 12 month high of $166.86. The company has a 50 day simple moving average of $140.84 and a 200-day simple moving average of $98.96. The firm has a market cap of $38.07 billion, a PE ratio of 44.64, a P/E/G ratio of 0.61 and a beta of 1.64.

Insiders Place Their Bets

In other Flex news, EVP David Scott Offer sold 33,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $153.91, for a total value of $5,079,030.00. Following the sale, the executive vice president owned 73,471 shares of the company’s stock, valued at $11,307,921.61. This trade represents a 30.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Kwang Hooi Tan sold 26,657 shares of the firm’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $144.48, for a total transaction of $3,851,403.36. Following the completion of the sale, the chief operating officer owned 257,527 shares in the company, valued at approximately $37,207,500.96. The trade was a 9.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 769,195 shares of company stock valued at $110,116,823. Company insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Flex

Several large investors have recently added to or reduced their stakes in FLEX. Brighton Jones LLC bought a new stake in Flex in the fourth quarter valued at about $260,000. Goldman Sachs Group Inc. grew its holdings in shares of Flex by 19.8% during the first quarter. Goldman Sachs Group Inc. now owns 1,279,137 shares of the technology company’s stock worth $42,314,000 after purchasing an additional 211,046 shares during the last quarter. Empowered Funds LLC bought a new position in shares of Flex in the first quarter worth about $397,000. EverSource Wealth Advisors LLC lifted its holdings in Flex by 63.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,646 shares of the technology company’s stock worth $132,000 after buying an additional 1,031 shares in the last quarter. Finally, First Trust Advisors LP boosted its holdings in Flex by 92.4% in the second quarter. First Trust Advisors LP now owns 62,078 shares of the technology company’s stock valued at $3,099,000 after acquiring an additional 29,821 shares during the last quarter. Institutional investors and hedge funds own 94.30% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. KeyCorp raised their target price on Flex from $75.00 to $180.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Freedom Capital raised shares of Flex from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Robert W. Baird set a $165.00 target price on shares of Flex in a research note on Thursday, May 7th. JPMorgan Chase & Co. increased their price objective on Flex from $75.00 to $84.00 and gave the stock an “overweight” rating in a research note on Thursday, April 16th. Finally, Barclays increased their target price on shares of Flex from $174.00 to $203.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $115.70.

Trending Headlines about Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Strong quarterly beat: Flex reported adjusted EPS of $1.00, versus the $0.90 consensus estimate cited by analysts, while revenue reached $7.93 billion, above expectations of approximately $7.53 billion. EPS increased from $0.72 a year earlier, and sales rose 20.6% year over year. Flex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Raised guidance exceeds estimates: Flex forecast second-quarter fiscal 2027 EPS of $1.00-$1.07 and revenue of $8.0-$8.3 billion, ahead of consensus estimates of $0.98 EPS and $7.8 billion revenue. Full-year EPS guidance of $4.42-$4.74 brackets the $4.46 consensus, while projected revenue of $33.7-$35.2 billion exceeds the $33.3 billion estimate.
• Positive Sentiment: Technical and analyst support: Zacks said the stock’s recent trading pattern formed a potential “hammer” signal, which can indicate support after a decline. The firm also cited upward earnings-estimate revisions as a possible catalyst for a near-term rebound. Flex Could Find Support Soon
• Neutral Sentiment: Planned spin-off advances: Flex named leadership teams for the company and SpinCo, its planned independent cloud and power infrastructure business. The separation is expected in the first calendar quarter of 2027 and could sharpen each company’s strategic focus, though it also introduces execution and transaction risks. Flex Announces Leadership Teams
• Negative Sentiment: Possible sell-the-news pressure: The strong results and outlook have not prevented a recent decline in FLEX shares. With the stock trading well above its 200-day average and at a relatively elevated earnings multiple, investors may be locking in gains or demanding further upside beyond the guidance increase.

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.