FLEX REPORTS FIRST QUARTER FISCAL 2026 RESULTS
AUSTIN, Texas, July 24, 2025 /PRNewswire/ -- Flex (NASDAQ:FLEX) today announced results for its first quarter ended June 27, 2025.
First Quarter Fiscal Year 2026 Highlights:
Net Sales: $6.6 billion
GAAP Operating Income: $311 million
Adjusted Operating Income: $395 million
GAAP Net Income: $192 million
Adjusted Net Income: $274 million
GAAP Earnings Per Share: $0.50
Adjusted Earnings Per Share: $0.72
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules II and V attached to this press release.
"Our first quarter results are a great start to FY26 and a testament to the strength of our strategic focus on high-growth end-markets like data center and power," said Revathi Advaithi, CEO of Flex. "We've built and scaled a regionalized footprint and integrated services in a way that continues to transform Flex into a strategic, end-to-end partner. Our improved FY26 guidance reflects both our leadership position and the impact of transformational acquisitions that continue to shape who we are as a company."
Second Quarter Fiscal 2026 Guidance
Revenue: $6.5 billion to $6.8 billion
GAAP Operating Income: $322 million to $362 million
Adjusted Operating Income: $375 million to $415 million
GAAP EPS: $0.58 to $0.66
Adjusted EPS: $0.70 to $0.78 which excludes $0.09 for net stock-based compensation expense and $0.03 for net intangible amortization.
Fiscal Year 2026 Guidance Updated
Revenue: $25.9 billion to $27.1 billion
GAAP EPS: $2.27 to $2.47
Adjusted EPS: $2.86 to $3.06 which excludes $0.35 for net stock-based compensation expense, $0.15 for net intangible amortization and $0.09 for net restructuring & other charges
Webcast and Conference Call
The Flex management team will host a conference call today at 7:30 AM (CT) / 8:30 AM (ET), to review first quarter fiscal 2026 results. A live webcast of the event and slides will be available on the Flex Investor Relations website at http://investors.flex.com. An audio replay and transcript will also be available after the event on the Flex Investor Relations website.
About Flex
Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.
Contacts
Investors & AnalystsMichelle SimmonsSenior Vice President, Global Investor Relations and Public Relations(669)
Media & PressYvette LorenzDirector, Executive Communications and Corporate PR(415)
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; the effects that the current and future macroeconomic environment, including inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates, could have on our business and demand for our products; geopolitical uncertainties and risks, including impacts from trade conflicts, the termination and renegotiation of international trade agreements and trade policies, a further escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, or the ongoing conflicts between Russia and Ukraine and in the Middle East, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; our dependence on industries that continually produce technologically advanced products with short product life cycles; the impact of fluctuations in the pricing or availability of raw materials and components, labor and energy; the short-term nature of our customers' commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory and other issues which adversely affect our operating results; our dependence on a small number of customers; our industry is extremely competitive; that the expected revenue and margins from recently launched programs may not be realized; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; the possibility that benefits of our restructuring actions may not materialize as expected; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and adversely affect our operations; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits; hiring and retaining key personnel; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; litigation and regulatory investigations and proceedings; risks related to the spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; the impact and effects on our business, results of operations and financial condition of union disputes or other labor disruptions as well as unforeseen or catastrophic events; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement, misuse or breach of license agreements; physical and operational risks from natural disasters, severe weather events, or climate change; we may be exposed to product liability and product warranty liability; we may be exposed to financially troubled customers or suppliers; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to trade policy and tariffs and climate change; our ability to meet sustainability, including environmental, social and governance, expectations or standards or achieve sustainability goals.
Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and in our subsequent filings with the U.S. Securities and Exchange Commission. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.
SCHEDULE I
FLEX
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
Three-Month Periods Ended
June 27, 2025
June 28, 2024
GAAP:
Net sales
$ 6,575
$ 6,314
Cost of sales
5,987
5,827
Restructuring charges
16
16
Gross profit
572
471
Selling, general and administrative expenses
233
213
Restructuring charges
7
9
Intangible amortization
21
16
Operating income
311
233
Interest expense
51
56
Interest income
13
16
Other charges (income), net
7
2
Equity in earnings (losses) of unconsolidated affiliates
(20)
1
Income before income taxes
246
192
Provision for (benefit from) income taxes
54
53
Net income
$ 192
$ 139
GAAP EPS
Diluted earnings per share
$ 0.50
$ 0.34
Diluted shares used in computing per share amounts
381
411
See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying notes
on Schedule V attached to this press release.
