Flex (NASDAQ:FLEX) released its second-quarter fiscal year 2027 earnings results on October 28, 2026, reporting net sales of $8.5 billion and record adjusted earnings per share of $1.18 for the quarter ended September 25, 2026.

Key Highlights

  • Net sales of $8.5 billion: Q2 fiscal 2027 net sales rose 25% versus the prior year, according to the filing.
  • Record adjusted EPS of $1.18: The company reported GAAP EPS of $0.70 alongside a non-GAAP adjusted EPS of $1.18, which the filing described as a record.
  • GAAP operating income of $414 million: The filing reported a GAAP operating margin of 4.9% and an adjusted operating margin of 7.1% for the quarter.
  • Free cash flow of $261 million: Cash provided by operating activities was $501 million, with free cash flow of $261 million.
  • Updated fiscal year 2027 guidance: Full-year net sales guidance was raised to $34.9 billion to $35.9 billion, reflecting growth of 27% at the midpoint, with adjusted EPS guidance of $4.84 to $5.16.
  • Planned spin-off of Cloud and Power Infrastructure segment: The company disclosed it is advancing a planned spin-off of its Cloud and Power Infrastructure segment and unveiled the Axiom name for the separated business.
  • Acquisition of EPC Power: The filing noted the acquisition of EPC Power Corp., described as expected to be immediately accretive in fiscal 2027.

Flex Reports Q2 Fiscal 2027 Results, Raises Full-Year Outlook

According to the filing, Flex reported second-quarter fiscal 2027 net sales of $8,491 million, a 25% increase compared to the prior-year period. GAAP net income for the quarter was $263 million, with GAAP earnings per share of $0.70. On a non-GAAP basis, the company reported adjusted net income of $443 million and adjusted earnings per share of $1.18, which the filing characterized as a record. GAAP operating income was $414 million and adjusted operating income was $607 million.

The filing also detailed third-quarter fiscal 2027 guidance, projecting net sales of $8.87 billion to $9.17 billion, representing growth of 28% at the midpoint. Adjusted operating income for Q3 was guided to a range of $685 million to $715 million, and adjusted EPS was guided to $1.19 to $1.25, representing growth of 40% at the midpoint. The weighted average shares outstanding for Q3 was projected at approximately 375 million, with an adjusted income tax rate of approximately 21%.

For the full fiscal year 2027, the company raised its prior net sales guidance range of $33.7 billion to $35.2 billion to an updated range of $34.9 billion to $35.9 billion. Adjusted operating margin guidance was raised from 7.0%-7.2% to 7.6%-7.8%, and adjusted EPS guidance was raised from $4.42-$4.74 to $4.84-$5.16. The filing noted that the full-year guidance reflects expected results for the full fiscal year, does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment, and includes contributions from acquisitions closed subsequent to September 25, 2026. CEO Revathi Advaithi stated in the release that the company continues "to execute from a position of strength while advancing our planned spin-off," and that the EPC Power acquisition "will be immediately accretive in fiscal 2027." The filing noted that forward-looking statements, including guidance figures, are subject to risks and uncertainties as detailed in the company's cautionary language.

What Was Disclosed

Flex disclosed its second-quarter fiscal 2027 financial results, including net sales of $8.5 billion, GAAP EPS of $0.70, and record adjusted EPS of $1.18, along with raised full-year fiscal 2027 guidance and updates on its planned Cloud and Power Infrastructure segment spin-off.