Flex Ltd. Reports Strong Q2 FY2027 Results and Raises Full-Year Guidance

Executive Summary

On October 28, 2026, Flex Ltd. filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing financial results for its second quarter of fiscal 2027 ended September 25, 2026.

Key Financial Highlights

• Net Sales: Reported at $8.491 billion, representing a 25% increase compared to $6.804 billion in Q2 FY2026.
• Operating Margins:
  • GAAP Operating Margin: 4.9% (operating income of $414 million).
  • Adjusted Operating Margin: 7.1% (adjusted operating income of $607 million).
• Net Income & EPS:
  • GAAP Net Income: $263 million ($0.70 per diluted share), up from $199 million ($0.52 per diluted share) in Q2 FY2026.
  • Adjusted Net Income: $443 million ($1.18 per diluted share).
• Cash Flow: Generated $501 million in operating cash flow and $261 million in free cash flow during the quarter.

Guidance & Outlook

Q3 FY2027 Outlook:

• Net Sales: Expected between $8.87 billion and $9.17 billion (~28% YoY growth at the midpoint).
• Adjusted Operating Income: $685 million to $715 million.
• Adjusted EPS: $1.19 to $1.25 (~40% YoY growth at the midpoint).

Updated FY2027 Full-Year Guidance:

• Net Sales: Raised to $34.9 billion – $35.9 billion (from $33.7 billion – $35.2 billion prior), representing 27% growth at the midpoint.
  • CPI segment projected to grow +75% to 85%.
  • RMS + ITS projected to grow +8% to 11%.
• Adjusted Operating Margin: Raised to 7.6% – 7.8% (prior 7.0% – 7.2%).
• Adjusted EPS: Raised to $4.84 – $5.16 (prior $4.42 – $4.74), representing 52% growth at the midpoint.

Strategic Developments

• Portfolio Realignment & Spin-Off: Management announced progress on the planned separation of its Cloud and Power Infrastructure segment under the newly unveiled name Axiom.
• M&A Expansion: Completed the acquisition of EPC Power Corp., expanding the company's end-to-end data center power and thermal management capabilities.