Flex (NASDAQ:FLEX) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Flex (NASDAQ:FLEX) issued its quarterly earnings results on Wednesday. The technology company reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.10, FiscalAI reports. The business had revenue of $7.93 billion during the quarter, compared to analyst estimates of $7.53 billion. Flex had a return on equity of 23.15% and a net margin of 3.32%.Flex’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.72 EPS. Flex updated its Q2 2027 guidance to 1.000-1.070 EPS and its FY 2027 guidance to 4.420-4.740 EPS.

Here are the key takeaways from Flex’s conference call:

• Strong first-quarter results: Revenue rose 21% year over year to $7.9 billion, while adjusted operating margin expanded 70 basis points and adjusted EPS increased 39% to a record $1.00.
• AI infrastructure demand remains robust: Cloud and Power Infrastructure revenue grew 35%, with management forecasting 65%–75% growth for fiscal 2027 and citing strong visibility, capacity investments, and program ramps in cloud, power, and cooling.
• Favorable outlook across growth markets: Communications, advanced networking, industrial energy infrastructure, robotics, and warehouse automation are expected to benefit from sustained data-center investment and longer-term secular trends, with the company also reporting share gains in some networking products.
• Free cash flow expectations were reduced: Incorporating costs associated with the planned spin-off, Flex lowered expected fiscal 2027 free-cash-flow conversion to approximately 40% from the previously stated 60%, while consumer-related end markets remain weak.
• Spin-off remains on track: Flex continues preparing to separate its Cloud and Power Infrastructure segment into a standalone company, targeting a tax-free spin-off in the first quarter of calendar 2027 and planning to provide further details at its November 10 Investor Day.

Flex Price Performance

Shares of Flex stock opened at $114.44 on Friday. The firm has a market cap of $41.93 billion, a PE ratio of 44.49, a PEG ratio of 0.54 and a beta of 1.64. The stock has a 50 day moving average of $139.88 and a 200 day moving average of $99.62. The company has a current ratio of 1.38, a quick ratio of 0.87 and a debt-to-equity ratio of 0.95. Flex has a 12 month low of $47.83 and a 12 month high of $166.86.

Insiders Place Their Bets

In other news, EVP David Scott Offer sold 6,657 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $145.23, for a total transaction of $966,796.11. Following the sale, the executive vice president directly owned 91,122 shares of the company’s stock, valued at $13,233,648.06. This represents a 6.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Daniel Wendler sold 1,311 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $145.20, for a total value of $190,357.20. Following the transaction, the chief accounting officer owned 37,932 shares of the company’s stock, valued at $5,507,726.40. This represents a 3.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 769,195 shares of company stock worth $110,116,823. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Flex

Institutional investors and hedge funds have recently made changes to their positions in the business. Parkside Financial Bank & Trust raised its position in shares of Flex by 57.0% during the 4th quarter. Parkside Financial Bank & Trust now owns 457 shares of the technology company’s stock valued at $28,000 after buying an additional 166 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in Flex by 6,318.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 706 shares of the technology company’s stock worth $43,000 after acquiring an additional 695 shares in the last quarter. Transamerica Financial Advisors LLC increased its stake in Flex by 168.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 841 shares of the technology company’s stock worth $51,000 after acquiring an additional 528 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Flex during the third quarter worth approximately $52,000. Finally, EverSource Wealth Advisors LLC raised its position in Flex by 63.8% during the second quarter. EverSource Wealth Advisors LLC now owns 2,646 shares of the technology company’s stock valued at $132,000 after purchasing an additional 1,031 shares during the period. 94.30% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FLEX has been the subject of a number of recent analyst reports. Stifel Nicolaus upped their price objective on Flex from $75.00 to $95.00 and gave the stock a “buy” rating in a research note on Monday, April 20th. The Goldman Sachs Group decreased their target price on Flex from $177.00 to $154.00 and set a “buy” rating on the stock in a research note on Thursday. Barclays lowered their price target on Flex from $203.00 to $144.00 and set an “overweight” rating on the stock in a report on Thursday. KeyCorp upped their price target on Flex from $75.00 to $180.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Finally, Zacks Research cut shares of Flex from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $114.20.

Flex Company Profile

Flex (NASDAQ: FLEX), formerly known as Flextronics, is a global provider of electronics manufacturing services (EMS) and original design manufacturing (ODM). The company offers end-to-end product lifecycle solutions including product design and engineering, prototyping, volume manufacturing, testing, and aftermarket services. Its offerings extend into supply chain management, component sourcing, logistics and distribution, and advanced manufacturing capabilities such as automation and digital manufacturing to support customers from concept through end-of-life.

Flex serves a broad range of industries, including automotive, healthcare, industrial, communications, and consumer electronics, working with original equipment manufacturers (OEMs) and technology companies to accelerate time to market and manage complex supply chains.