Key Highlights:

  • Revenue came in at USD 7.9 billion, growing 21% year over year driven by strength in the Cloud and Power.
  • Adjusted EPS totaled USD 1.00, a 39% increase year over year reflecting margin expansion and operational execution.
  • Fiscal Year 2027 Revenue Guidance stood at USD 33.7 billion to USD 35.2 billion, representing 23% growth at the midpoint.
  • Adjusted Gross Margin was reported at 9.6%, up 50 basis points from the prior year.

Flex Ltd. (NASDAQ:FLEX) is scheduled to report third quarter results on Wednesday, Oct. 28, before the market open. Consensus estimates call for adjusted earnings per share of USD 1.06 on revenue of USD 8.17 billion, against a market capitalization of USD 28.44 billion.

In the most recently reported quarter, Revenue came in at USD 7.9 billion, growing 21% year over year driven by strength in the Cloud and Power Infrastructure segment. Adjusted EPS totaled USD 1.00, a 39% increase year over year reflecting margin expansion and operational execution.

Adjusted Operating Margin and Other Business Trends

Adjusted Operating Margin came in at 6.7%, increasing 70 basis points year over year due to favorable business mix and productivity improvements. Regulated Manufacturing Solutions Revenue totaled USD 2.7 billion, up 12% year over year behind strength in the industrial business unit. Integrated Technology Solutions Revenue stood at USD 3.1 billion, growing 20% year over year on exceptional performance in communications. Cloud and Power Infrastructure Revenue was reported at USD 2.2 billion, a 35% increase year over year as cloud and cooling programs continued to ramp.

What Management Guided

Fiscal Year 2027 Adjusted EPS Guidance came in at USD 4.42 to USD 4.74, an increase of 39% year over year at the midpoint. Capital Expenditures Guidance totaled USD 1.5 billion to USD 1.6 billion, focused on facility and infrastructure investments for the Cloud and Power Infrastructure segment. Second Quarter Revenue Guidance stood at USD 7.95 billion to USD 8.25 billion, a projected 19% increase at the midpoint. Second Quarter Adjusted EPS Guidance was reported at USD 1.00 to USD 1.07, representing 32% growth at the midpoint.

Cloud and Power Infrastructure Growth Outlook and Capital Position

Cloud and Power Infrastructure Growth Outlook came in at 65% to 75% for the full fiscal year, driven by both cloud and power units. Free Cash Flow totaled USD 41 million, which includes a negative impact of USD 24 million from one-time spin-off activity costs. Inventory stood at USD 6.5 billion, up 24% year over year to support anticipated revenue growth. Regulated Manufacturing Solutions Margin was reported at 6.6%, up 130 basis points year over year. Integrated Technology Solutions Margin came in at 5.2%, up 10 basis points year over year despite consumer-market weakness.

Cloud and Power Infrastructure Margin and Additional Detail

Cloud and Power Infrastructure Margin came in at 9.7%, up 20 basis points year over year. Fiscal Year 2027 Adjusted Operating Margin Guidance totaled 7.7% to 8.2%, an 80 basis point increase at the midpoint. Free Cash Flow Conversion Guidance stood at 40%, revised from 60% to incorporate spin-off related costs. Inventory Days was reported at 56 days net of working capital advances, an increase of one day versus the prior year. Net Capital Expenditures came in at USD 235 million in the first quarter, representing approximately 3% of total revenue.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Fiscal Year 2027 Revenue Guidance came in at USD 33.7 billion to USD 35.2 billion, representing 23% growth at the midpoint.