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Flex Reports Second Quarter Fiscal 2026 Results

On October 29, 2025, Flex (NASDAQ: FLEX) unveiled its mid-year performance, reporting a noteworthy 4% increase in net sales for the second quarter ended September 26, 2025. This figure not only meets but also aligns with the upper end of the company's expectations, showcasing resilience in a competitive market.

Key Financial Highlights

The financial details released indicate the following key metrics:

• - Net Sales: $6.8 billion
• - GAAP Operating Income: $296 million
• - GAAP Net Income: $199 million
• - GAAP Earnings Per Share: $0.52
• - Free Cash Flow: $305 million

In terms of non-GAAP results, which provide a clearer view of operational performance, the adjusted operating income marked $409 million and adjusted net income reached $300 million, yielding an impressive adjusted earnings per share of $0.79, a record for the company.

The significant uptick in revenue and profits is primarily attributed to the strong demand within Flex's Power and Cloud businesses, as articulated by CEO Revathi Advaithi during the announcement. "We achieved a record Q2, and we continue to execute with discipline and deliver value for customers across business segments," she stated, underscoring the company’s shift toward high-margin segments.

Updated Guidance for Fiscal 2026

In light of the positive second-quarter results and ongoing operational efficiencies, Flex has chosen to elevate its full-year guidance. The revised projections now anticipate:

• - Net Sales: $26.7 billion to $27.3 billion
• - Adjusted Operating Margin: between 6.2% and 6.3%
• - Adjusted Earnings Per Share: $3.09 to $3.17

Flex remains committed to navigating the complex landscape of the AI era, enhancing its ability to provide fully integrated solutions for customers, especially within the booming data center sector. As businesses globally pivot towards AI-driven methodologies, Flex's role as a manufacturing partner becomes increasingly crucial. The company is not just focusing on increasing sales but is also committed to sustainable practices and operational excellence, aiming to address the challenges associated with power, heat, and scalability in IT infrastructure.

Financial Metrics Breakdown

Flex's performance metrics over the past quarter exemplify robust health in financial operations. GAAP EPS for the quarter was recorded at $0.52, factoring in costs from a missile strike that affected its operations in Ukraine, which amounted to $41 million or $0.11 per share. Despite this unplanned expense, the organizational resilience shines through, with the adjusted earnings per share achieving a new high at $0.79.

The company's free cash flow of $305 million during the quarter is indicative of strong cash generation capabilities, affording Flex the financial flexibility to invest back into operations and support growth initiatives.

Forward-Looking Statements

While the current climate showcases promising growth prospects, Flex’s management has exercised caution, providing guidance that factors in potential risks ahead. These include geopolitical uncertainties, fluctuating commodity prices, and evolving customer demands. Flex's management cautions against placing excessive reliance on the presented forward-looking statements as they are influenced by a range of unpredictable external factors.

Upcoming Engagements

Flex’s executive team is scheduled to provide further insights during a conference call following this announcement for analysts and investors. This will be held at 7:30 AM (CT)/ 8:30 AM (ET) today, with a live webcast available through the Flex Investor Relations platform.

In summary, Flex's continuing strong performance during the second quarter of fiscal 2026 exhibits its adaptive strategies in a dynamically changing market. With updated guidance reflecting confidence in operational execution and market demands, Flex illustrates its position as a key player in advanced manufacturing and supply chain solutions.