Flex (NASDAQ:FLEX) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Flex (NASDAQ:FLEX) issued its quarterly earnings results on Wednesday. The technology company reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.10, FiscalAI reports. The company had revenue of $7.93 billion for the quarter, compared to analysts’ expectations of $7.53 billion. Flex had a return on equity of 22.12% and a net margin of 3.15%.The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 earnings per share. 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 Down 9.1%

NASDAQ:FLEX opened at $103.02 on Thursday. The firm has a market cap of $37.74 billion, a P/E ratio of 44.21, a P/E/G ratio of 0.59 and a beta of 1.64. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.87 and a current ratio of 1.36. Flex has a fifty-two week low of $47.83 and a fifty-two week high of $166.86. The firm has a 50-day simple moving average of $140.27 and a two-hundred day simple moving average of $99.27.

Insider Activity

In related news, COO Kwang Hooi Tan sold 26,657 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The shares were 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 of the company’s stock, valued at $37,207,500.96. This trade represents a 9.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Revathi Advaithi sold 197,879 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $144.32, for a total value of $28,557,897.28. Following the completion of the transaction, the chief executive officer directly owned 623,466 shares in the company, valued at $89,978,613.12. This trade represents a 24.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 769,195 shares of company stock worth $110,116,823. Corporate insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Flex

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Parkside Financial Bank & Trust grew its stake in shares of Flex by 57.0% in the fourth quarter. Parkside Financial Bank & Trust now owns 457 shares of the technology company’s stock worth $28,000 after acquiring an additional 166 shares during the period. Caitong International Asset Management Co. Ltd lifted its position in Flex by 6,318.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 706 shares of the technology company’s stock valued at $43,000 after purchasing an additional 695 shares during the period. Transamerica Financial Advisors LLC boosted its holdings in Flex by 168.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 841 shares of the technology company’s stock worth $51,000 after purchasing an additional 528 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Flex in the 3rd quarter worth approximately $52,000. Finally, EverSource Wealth Advisors LLC raised its stake in Flex by 63.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,646 shares of the technology company’s stock valued at $132,000 after buying an additional 1,031 shares during the last quarter. Institutional investors own 94.30% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on FLEX shares. Robert W. Baird set a $165.00 target price on shares of Flex in a research report on Thursday, May 7th. Stifel Nicolaus lifted their price target on shares of Flex from $75.00 to $95.00 and gave the company a “buy” rating in a research report on Monday, April 20th. KeyCorp upped their price objective on shares of Flex from $75.00 to $180.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. Zacks Research downgraded shares of Flex from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 7th. Finally, Barclays reiterated an “overweight” rating and set a $144.00 target price (down from $203.00) on shares of Flex in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $118.80.

Key Flex News

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex earned $1.00 per share, exceeding the $0.90 consensus estimate, while revenue rose 20.6% year over year to $7.93 billion, above expectations of approximately $7.53 billion. Adjusted operating margin was 6.7%, supported by growth in cloud and power infrastructure. Flex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. Full-year revenue is projected at $33.7 billion to $35.2 billion, above the $33.3 billion consensus, while EPS guidance of $4.42 to $4.74 is centered above current analyst expectations. Second-quarter revenue and EPS guidance also exceeded consensus estimates. Flex Fiscal 2027 Forecast
• Positive Sentiment: Flex announced leadership teams for itself and SpinCo, the planned publicly traded company containing its Cloud and Power Infrastructure business. The spin-off remains targeted for the first calendar quarter of 2027 and could unlock value if both businesses execute effectively. Flex Announces Leadership Teams
• Neutral Sentiment: The earnings release showed improving profitability, including a 4.9% GAAP operating margin and 22.1% return on equity. However, Flex’s net margin remained relatively narrow at 3.15%, and its quick ratio of 0.87 indicates limited immediately liquid assets.
• Negative Sentiment: Despite the earnings and guidance beats, shares fell about 9% and extended a four-session losing streak. The reaction suggests investors may have already priced in strong growth, while remaining concerned about high valuation, execution of the 2027 spin-off and whether elevated cloud and power infrastructure demand can continue.

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.