Flex Reports Impressive Third Quarter Results for Fiscal Year 2026, Surpassing Growth Expectations

Flex's Exceptional Third Quarter Results for Fiscal Year 2026

Flex (NASDAQ: FLEX) has released its financial results for the third quarter of fiscal year 2026, ending December 31, 2025. This report highlights impressive financial outcomes that exceed previous guidance across various metrics, showcasing the strength of the company's diversified business model.

Financial Highlights

The company demonstrated robust growth with net sales reaching $7.1 billion, marking an 8% increase compared to the previous year. This achievement aligns perfectly with Flex's strategic goals, underpinned by a broad portfolio that includes key sectors like data centers. Moreover, the company achieved a record GAAP operating margin of 5.5%, with an adjusted operating margin of 6.5%, which is noteworthy for being the fifth successive quarter where the adjusted operating margin remained above 6%.

Flex's earnings per share (EPS) have also shown promising growth, with a reported GAAP EPS of $0.64 and an adjusted EPS of $0.87, further solidifying its financial stability and operational effectiveness.

Strong Leadership and Positive Outlook

Revathi Advaithi, the CEO of Flex, expressed confidence in the company's path forward. In her statements, she emphasized the ongoing strong performance and noted that all metrics had surpassed guidance expectations. Advaithi attributed this success to Flex's resilient and diversified business model, which empowers the company to adapt and excel in complex market environments.

“Our strong performance continued in the third quarter, with results exceeding our guidance across all metrics. This performance reflects the strength of our diversified business model across industries,” said Advaithi.

Segment Performance

In the recent quarter, Flex's business diversification played a crucial role in driving the company's performance. By servicing various industries—including technology, automotive, and healthcare—Flex has created a solid risk mitigation strategy. The company's ability to pivot quickly between sectors has allowed it to adjust to market demands effectively, minimizing potential disruptions.

Flex's commitment to innovation in advanced manufacturing has also contributed significantly to its quarterly success. With newly developed technologies and efficient operational strategies, Flex minimizes traditional manufacturing overhead, increasing profitability and customer satisfaction.

Financial Forecast

Looking ahead, Flex has raised its full-year guidance for net sales, adjusted operating margin, and adjusted EPS, projecting a continued growth trajectory. For the fourth quarter of fiscal year 2026, Flex estimates net sales between $6.75 billion and $7.05 billion, along with adjusted operating income between $445 million and $475 million. Similarly, the adjusted EPS is anticipated to range from $0.83 to $0.89, reflecting an 18% growth at the midpoint.

For the entire fiscal year 2026, Flex now expects net sales to be between $27.2 billion and $27.5 billion, which represents a 6% growth at the midpoint. Adjusted EPS is projected to increase by about 22% at the midpoint, laying a foundation for promising financial performance in the upcoming years.

Free Cash Flow and Financial Health

Flex’s concern for fiscal responsibility is evidenced by the free cash flow of $275 million reported for the quarter. This indicates the company's aptitude for generating cash that can be reinvested in growth initiatives, shareholder returns, or debt reduction.

Investors will be keenly watching how these positive trends evolve and whether Flex can maintain its momentum in the upcoming quarters. The ongoing webcast and conference calls, in which the management team discusses these results further, are a valuable opportunity for stakeholders to gain insights into the company's strategies and expectations.

Conclusion

Flex's third quarter results for fiscal year 2026 mark a significant milestone in its journey of growth and resilience. Through innovation, strategic diversification, and a focus on operational efficiency, the company is well-positioned to navigate future challenges while continuing to deliver value to its customers and stakeholders.