revenue
33.7–35.2 $billion
FY 2027
official guidance
FLEX LTD.
Last · NasdaqGS$100.35-10.53 (-9.50%)close · yahoo · 11h ago
Market cap$37.08B369.5M sh
P/E · TTM38.7fwd 14.2 · eps 2.59
Beta1.66vs S&P 500
Div yield0.00%annual · TTM
52w range
$53.07$166.86
Volume4.7Msession
| Revenue | $29.3B |
|---|---|
| Operating income | $1.4B |
| Free cash flow | $826.0M |
| Operating margin | 5.0% |
| Period | TTM 2026-06-26 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution and unusually visible AI-infrastructure growth outweigh the near-term spin-off and cash-flow risks.
Flex delivered a strong Q1:
revenue rose 21% to $7.9 billion, adjusted operating margin expanded 70 bps to 6.7%, and adjusted EPS increased 39% to $1.00. The AI infrastructure thesis remains compelling, with CPI revenue up 35% and FY2027 guidance calling for 65%-75% CPI growth, but the investment case still depends on executing a heavily back-half-loaded ramp, completing the spin-off, and converting growth into cash; free-cash-flow conversion was reduced to approximately 40%.
Themes
- Ai Infrastructure
- Cpi Growth
- Spin Off
- Advanced Networking
- Liquid Cooling
- Power Infrastructure
Near term
CPI growth is expected to accelerate from 35% in Q1 to 45%-55% in Q2 and 65%-75% for FY2027; capacity commissioning and customer program ramps are the key execution tests.
The planned tax-free spin-off remains on track for calendar Q1 2027, with Investor Day on November 10 likely to clarify standalone financial profiles, capital allocation, and valuation.
Q2 guidance is $7.95-$8.25 billion of revenue and $1.00-$1.07 of adjusted EPS, implying continued strong year-over-year growth.
Advanced networking momentum in Communications is supporting ITS, but consumer-related end markets remain weak.
Longer term
CPI is becoming an AI power, cooling, and infrastructure exposure rather than simply an electronics-manufacturing business; management expects the framework for approximately 80% CPI growth in FY2028 to remain intact.
Flex's differentiated opportunity is the combination of power-product IP, liquid cooling, modular deployment, and compute integration. However, analysts correctly highlighted that other EMS companies are expanding into adjacent data-center capabilities, making demonstrated design wins and margin performance important.
RemainCo retains secular exposure to advanced networking, energy-infrastructure contract manufacturing, robotics, and warehouse automation, reducing dependence on CPI after the separation.
The advanced networking business appears diversified across OEMs and product categories and is benefiting from both market growth and share gains, supporting potential durability into FY2028.
Red flags
The FY2027 CPI outlook is heavily back-half loaded and requires substantial capacity investments and factory ramps; management provided confidence but little quantitative detail on installed or customer-qualified capacity.
CPI margins remain below some peers, particularly in Power, because Flex is investing to support 70%-plus growth. The promised at least 100-basis-point full-year CPI margin improvement is not yet proven.
Free cash flow was only $41 million in Q1, and full-year free-cash-flow conversion was reset from 60% excluding spin costs to approximately 40% including them.
Management gave no substantive update on the Amazon commercial arrangement, despite its relevance to both the spun-out and retained businesses.
Cooling is strategically attractive but still nascent: JetCool's cold plates and CDUs are being qualified, so the growth contribution and competitive moat remain unproven.
Forward outlook
revenue growth
23 pct
FY 2027
official guidance
operating margin
7–7.2 pct
FY 2027
official guidance
adjusted eps
4.42–4.74 $per share
FY 2027
official guidance
revenue
7.95–8.25 $billion
Q2 2027
official guidance
revenue growth
19 pct
Q2 2027
official guidance
adjusted eps
1–1.07 $per share
Q2 2027
official guidance
revenue growth
65–75 pct
FY 2027
official guidance
revenue growth
5–9 pct
FY 2027
official guidance
revenue growth
8–12 pct
FY 2027
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-05-20
- Cpi Spin Off
- Data Center Growth
- Hyperscaler Concentration
- Power And Water Constraints
- Tariff Pass Through
- Debt Increase
- Geographic Concentration
Red flags
- Revenue concentration by manufacturing location is material: Mexico represented 25% of FY2026 sales, China 16%, and Malaysia 11%; Mexico, China, and Malaysia also represented 36%, 12%, and 8% of net property and equipment, respectively.
- Customer concentration is especially pronounced in CPI: a limited number of hyperscale cloud providers, colocation companies, and large enterprise data-center operators represent a substantial portion of demand, but the excerpt does not quantify the individual shares.
- Flex’s debt was $3.751 billion at March 31, 2026, versus $2.483 billion of non-current debt a year earlier; interest-rate and refinancing exposure increased with the $500 million delayed-draw term loan and new long-dated notes.
- The company settled a foreign tax assessment for $50 million after approximately $167 million had been assessed, including a $19 million FY2026 tax-expense charge and an additional $20 million cash payment.
- The CPI spin-off could incur significant costs and may not occur on the contemplated terms or schedule; separating the segment also creates execution risk and could disrupt customer, financing, or operational arrangements.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$1.06
Est. revenue
8.2B
Earnings transcripts
Documents
FormReporting forFiledFlags