FLEX REPORTS SECOND QUARTER FISCAL
• Delivered Q2 GAAP operating margin of 4.9%, and adjusted operating margin of 7.1%.
Flex (NASDAQ: FLEX) today announced results for its second quarter ended September 25, 2026. "We continue to execute from a position of strength while advancing our planned spin-off of our Cloud and Power Infrastructure segment. Our acquisition of EPC Power further completes our end-to-end Power portfolio and will be immediately accretive in fiscal 2027, while the unveiling of the Axiom name and anticipated leadership marks another important step toward creating two focused companies positioned for long-term success,” said Revathi Advaithi, CEO of Flex. Second Quarter Fiscal Year 2027 GAAP Summary:
An explanation and reconciliation of GAAP financial measures to non-GAAP financial measures is presented in Schedules II and V attached to this press release. Third Quarter Fiscal Year 2027 Guidance: • Net Sales: $8.87 billion to $9.17 billion, growth of 28% at the midpoint
• Adjusted EPS: $1.19 to $1.25*, growth of 40% at the midpoint • Interest & Other: approximately $120 million
• Adjusted Operating Margin: 7.6% to 7.8%* • Adjusted EPS: $4.84 to $5.16*, growth of 52% at the midpoint
*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort for the reasons set forth in Schedule V attached to this press release.
† Reflects expected results for the full fiscal year and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment. Includes contributions from recent acquisitions closed subsequent to September 25, 2026.
The Flex management team will host a conference call today, October 28, 2026, at 7 :30 AM (CT) / 8:30 AM (ET), to review second quarter fiscal 2027 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.
Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions.
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; risks related to our ability to successfully execute our strategic priorities, including the planned spin-off of our Cloud and Power Infrastructure segment into an independent, publicly traded company, and to achieve the anticipated benefits of such transaction, including risks that the spin-off may not be completed on the anticipated timeline or at all, that the spin-off may not achieve its intended benefits, that the transaction may have an adverse impact on existing business relationships, and that the costs of the spin-off may be greater than anticipated; 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, including recent developments in Iran, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, including those involving suppliers who are sole or primary sources, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, including semiconductors, labor and energy; our dependence on industries that continually produce technologically advanced products with short product life cycles; 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; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits, including the acquisitions of Electrical Power Products, Inc. and EPC Power Corp., and other events that could adversely impact the anticipated benefits of the acquisition, including industry or economic conditions outside of our control; 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; 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; 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. Any references to the planned spin-off, including its timing, Form 10 status, and the leadership of each company following the separation, are forward-looking and remain subject to applicable approvals and completion of the spin-off. 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.
FLEX UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, Three-Month except per Periods share Ended amounts) September September 26, GAAP: 25, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net sales $ 8,491 $ 6,804 Cost of sales 7,664 6,181 Restructuring 15 9 charges Gross profit 812 614 Selling, general and 371 260 administrati… expenses Restructuring and — 42 impairment charges Intangible 27 16 amortization Operating 414 296 income Interest 69 52 expense Interest 13 10 income Other charges -7 -13 (income), net Equity in earnings (losses) of 5 -5 unconsolidat… affiliates Income before 370 262 income taxes Provision for 107 63 income taxes Net income $ 263 $ 199 GAAP EPS Diluted earnings per $ 0.70 $ 0.52 share Diluted shares used in computing 374 380 per share amounts See Schedule II for the reconciliati… of GAAP to non-GAAP financial measures. See the accompanying notes on Schedule V attached to this press release.
FLEX UNAUDITED CONDENSED CONSOLIDAT… STATEMENTS OF OPERATIONS (In millions, Six-Month except per Periods share Ended amounts) September September 26, GAAP: 25, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net sales $ 16,419 $ 13,379 Cost of 14,841 12,168 sales Restructuri… 19 25 charges Gross profit 1,559 1,186 Selling, general and 705 493 administrat… expenses Restructuri… and impairment -2 49 charges (reversal) Intangible 50 37 amortization Operating 806 607 income Interest 129 103 expense Interest 26 23 income Other charges -44 -6 (income), net Equity in earnings (losses) of — -25 unconsolida… affiliates Income before 747 508 income taxes Provision for income 199 117 taxes Net income $ 548 $ 391 GAAP EPS Diluted earnings per $ 1.47 $ 1.03 share Diluted shares used in computing 374 381 per share amounts See Schedule II for the reconciliat… of GAAP to non-GAAP financial measures. See the accompanying notes on Schedule V attached to this press release.
FLEX RECONCI… OF GAAP TO NON-GAAP FINANCI… MEASURES (In million… except per share amounts Three-Mo… and Periods Septemb… September percent… Ended 25, 2026 26, 2025 ────────────────────────────────────────────────────────────────────────────── GAAP operati… income $ 414 4.9% $ 296 4.4% and margin % Intangib… 27 16 amortiza… Stock-ba… 43 37 compensa… Restruct… and 13 51 impairme… charges Legal and 110 9 other Non-GAAP operati… income $ 607 7.1% $ 409 6.0% and margin % GAAP provisi… for $ 107 $ 63 income taxes Intangib… amortiza… 6 3 benefit Other tax related 5 14 adjustme… Non-GAAP provisi… for $ 118 $ 80 income taxes GAAP net $ 263 $ 199 income Intangib… 27 16 amortiza… Stock-ba… 43 37 compensa… Restruct… and 13 51 impairme… charges Legal and 110 9 other Equity in losses of — 8 unconsol… affiliat… Interest and -2 -3 other, net Adjustme… -11 -17 for taxes Non-GAAP net $ 443 $ 300 income Diluted earnings per share: GAAP $ 0.70 $ 0.52 Non-GAAP $ 1.18 $ 0.79 Free Cash Flow: Net cash provided by $ 501 $ 453 operating activiti… Purchases of property -241 -150 and equipment Proceeds from the disposit… of 1 2 property and equipment Free Cash $ 261 $ 305 Flow See the accompan… notes on Schedule V attached to this press release.
FLEX RECONCI… OF GAAP TO NON-GAAP FINANCI… MEASURES (In million… except per share amounts Six-Month and Periods Septemb… September percent… Ended 25, 2026 26, 2025 ────────────────────────────────────────────────────────────────────────────── GAAP operati… income $ 806 4.9% $ 607 4.5% and margin % Intangib… 50 37 amortiza… Stock-ba… 94 71 compensa… Restruct… and 14 74 impairme… charges Legal and 177 15 other Non-GAAP operati… income $ 1,141 6.9% $ 804 6.0% and margin % GAAP provisi… for $ 199 $ 117 income taxes Intangib… amortiza… 11 8 benefit Other tax related 7 28 adjustme… Non-GAAP provisi… for $ 217 $ 153 income taxes GAAP net $ 548 $ 391 income Intangib… 50 37 amortiza… Stock-ba… 94 71 compensa… Restruct… and 14 74 impairme… charges Legal and 177 15 other Equity in losses of — 25 unconsol… affiliat… Interest and -48 -3 other, net Adjustme… -18 -36 for taxes Non-GAAP net $ 817 $ 574 income Diluted earnings per share: GAAP $ 1.47 $ 1.03 Non-GAAP $ 2.18 $ 1.51 Free Cash Flow: Net cash provided by $ 777 $ 852 operating activiti… Purchases of property -477 -283 and equipment Proceeds from the disposit… of 2 4 property and equipment Free Cash $ 302 $ 573 Flow See the accompan… notes on Schedule V attached to this press release.
FLEX UNAUDITED CONDENSED CONSOLIDAT… BALANCE SHEETS (In millions) ASSETS As of Current September As of March assets: 25, 2026 31, 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 3,083 $ 2,389 equivalents Accounts receivable, 5,777 4,679 net of allowance Contract 1,443 1,063 assets Inventories 7,323 5,845 Other current 2,548 2,356 assets Total current 20,174 16,332 assets Property and 2,849 2,505 equipment, net Operating lease 860 659 right-of-u… assets, net Goodwill 1,843 1,369 Other intangible 701 283 assets, net Other non-current 950 912 assets Total $ 27,377 $ 22,060 assets LIABILITIES AND SHAREHOLDE… EQUITY Current liabilitie… Accounts $ 9,707 $ 8,055 payable Accrued payroll and 649 671 benefits Deferred revenue and customer 2,534 2,156 working capital advances Other current 2,159 1,134 liabilities Total current 15,049 12,016 liabilities Long-term debt, net 5,213 3,751 of current portion Operating lease 770 565 liabilitie… non-current Other non-current 538 584 liabilities Total 21,570 16,916 liabilities Total shareholde… 5,807 5,144 equity Total liabilities and $ 27,377 $ 22,060 shareholde… equity
FLEX UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) CASH FLOWS FROM Six-Month Periods OPERATING Ended ACTIVITIES: September 25, 2026 September 26, 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 548 $ 391 Depreciation, amortization and other 296 298 impairment charges Changes in working capital -67 163 and other, net Net cash provided by operating 777 852 activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and -477 -283 equipment Proceeds from the disposition of 2 4 property and equipment Acquisition of businesses, net -1,134 -43 of cash acquired Proceeds from divestiture of businesses, 90 -4 net of cash held in divested businesses Other investing -1 -8 activities, net Net cash used in investing -1,520 -334 activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from bank borrowings 2,830 500 and long-term debt Payments of bank borrowings, long-term -1,401 -535 debt and other financing liabilities Payments for repurchases of — -544 ordinary shares Other financing 7 4 activities, net Net cash (used in) provided by 1,436 -575 financing activities Effect of exchange rates on 1 17 cash and cash equivalents Net change in cash and cash 694 -40 equivalents Cash and cash equivalents, 2,389 2,289 beginning of period Cash and cash equivalents, end $ 3,083 $ 2,249 of period
To supplement Flex’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share. These supplemental measures exclude certain legal and other charges, restructuring charges, customer-related asset impairments (recoveries), stock-based compensation expense, intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Flex’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Flex’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Also, when evaluating potential acquisitions, we exclude certain items described below from consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
• the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
• the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
• a better understanding of how management plans and measures the Company’s underlying business; and
• an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.
We present forward‑looking non‑GAAP financial measures in our third quarter and full year fiscal 2027 guidance, including adjusted operating income, adjusted operating margin, adjusted income tax rate, and adjusted EPS. We do not provide a reconciliation of these measures to the most directly comparable GAAP measures because the information necessary to do so is not available without unreasonable effort due to the inherent variability, complexity, and uncertainty in forecasting certain items required for such a reconciliation. These items may include restructuring charges and impairment charges, among others. The information that is unavailable could be material and could significantly affect our GAAP results.
The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share units granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.
Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.
Restructuring and impairment charges include severance charges at existing sites and corporate SG&A functions as well as asset impairment, and other charges related to the closures and consolidations of certain operating sites and targeted activities to restructure the business. These costs also include asset impairment charges related to assets significantly impacted by the geopolitical events on the basis of management's best estimate of the recoverable value of assets. These costs may vary in size based on the Company’s initiatives, are not directly related to ongoing or core business results, and do not reflect expected future operating expenses. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.
During the three and six-month periods ended September 25, 2026, the Company recognized $13 million, most of which related to employee severance. During the three and six-month periods ended September 26, 2025 the Company recognized $10 million and approximately $33 million of restructuring charges, respectively, most of which related to employee severance.
During the six-month period ended September 25, 2026, the Company recognized $1 million and during three and six-month periods ended September 26, 2025, the Company recognized $41 million in asset impairments, inventory write-downs and other charges as a result of an August 21, 2025 missile strike on the Company’s Mukachevo, Ukraine operations located in Western Ukraine.
Legal and other consist primarily of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other costs such as acquisition, portfolio optimization related costs and asset impairment. These costs are excluded by the Company’s management in assessing c urrent operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures. During the three and six-month periods ended September 25, 2026, the Company incurred approximately $91 million and $144 million, respectively, primarily related to the planned spin-off of its Cloud and Power Infrastructure segment into a separate publicly traded company as well as $19 million and $33 million, respectively, of acquisition costs. During the three and six-month periods ended September 26, 2025, the Company incurred approximately $9 million and $15 million, respectively, related to acquisition costs.
Equity in losses of unconsolidated affiliates consists of various other types of items that are not directly related to ongoing or core business results, such as significant gains or losses associated with certain non-
core investments. The Company excludes these items because they are not related to the Company's ongoing operating performance or do not affect core operations. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability. During the three and six-month periods ended September 26, 2025, the Company recognized approximately $8 million and $25 million, respectively, of equity in losses from a reduced valuation of a certain non-core investment fund. No such costs were incurred in the first half of fiscal year 2027.
Interest and other, net consist of various other types of items that are not directly related to ongoing or core business results, such as the gain or losses related to certain divestitures, currency translation reserve write-offs upon liquidation of certain legal entities, debt extinguishment costs an d impairment charges or gains associated with certain non-core investments. The Company excludes these items because they are not related to the Company’s ongoing operating performance or do not affect core operations. During the three and six-month periods ended September 25, 2026, the Company recognized $2 million and $48 million, respectively, of gains on the divestiture of a subsidiary.
Adjustments for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income and certain adjustme nts related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable . Effective in fiscal year 2026, the Company adopted an annual normalized tax rate for the purpose of determining the tax effect of non-GAAP adjustments. In estimating the normalized tax rate, the Company utilizes a full- year projection of earnings that considers the mix of earnings across tax jurisdictions, existing tax positions and other significant tax matters.
During the three and six-month periods ended September 25, 2026, the Company recognized a $11 million and $18 million net tax benefit, respectively. During the three and six-month periods ended September 26, 2025, the Company recognized a $17 million and $36 million net tax benefit, respectively, related to the tax effects of various adjustments that are incorporated into non-GAAP measures on restructuring and other.
Free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions, repurchase company shares and for certain other activities. The Company's free cash flow is defined as cash flows from operating activities, less net purchases of property and equipment and proceeds from the disposition of property and equipment ("net capital expenditures"), allowing us to present free cash flow on a consistent basis for investors.
During the three and six-month periods ended September 25, 2026, the Company recognized $261 million and $302 million of free cash inflow, respectively. During the three and six-month periods ended September 26, 2025, the Company recognized $305 million and $573 million of free cash inflow, respectively. Free Cash Flow for the three and six-month periods ended September 25, 2026, was negatively impacted by $61 million and $85 million respectively, of separation costs incurred in connection with the spin-off of Flex's Cloud & Power Infrastructure segment. Free cash flow is not a measure of liquidity under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.
Full text with the tables
P R E S S R E L E A S E
EXHIBIT 99.1
FLEX REPORTS SECOND QUARTER FISCAL
2027
RESULTS
• Reported Q2 net sales of $8.5 billion, up 25% versus the prior year.
• Delivered Q2 GAAP operating margin of 4.9%, and adjusted operating margin of
7.1%.
• Reported Q2 GAAP EPS of $0.70, and record adjusted EPS of $1.18.
Austin, Texas, October 28, 2026 –
Flex (NASDAQ: FLEX) today announced results for its second quarter ended
September 25, 2026.
"We continue to execute from a position of strength while advancing our planned
spin-off of our Cloud and Power Infrastructure segment. Our acquisition of EPC
Power further completes our end-to-end Power portfolio and will be immediately
accretive in fiscal 2027, while the unveiling of the Axiom name and anticipated
leadership marks another important step toward creating two focused companies
positioned for long-term success,” said Revathi Advaithi, CEO of Flex.
Second Quarter Fiscal Year 2027 GAAP Summary:
• Net Sales: $8.5 billion
• GAAP Operating Income: $414 million
• GAAP Net Income: $263 million
• GAAP Earnings Per Share: $0.70
• Cash provided by Operating Activities: $501 million
Second Quarter Fiscal Year 2027 Non-GAAP Summary:
• Adjusted Operating Income: $607 million
• Adjusted Net Income: $443 million
• Adjusted Earnings Per Share: $1.18
• Free Cash Flow: $261 million
An explanation and reconciliation of GAAP financial measures to non-GAAP
financial measures is presented in Schedules II and V attached to this press
release.
Third Quarter Fiscal Year 2027 Guidance:
• Net Sales: $8.87 billion to $9.17 billion, growth of 28% at the midpoint
• Adjusted Operating Income: $685 million to $715 million*
• Adjusted EPS: $1.19 to $1.25*, growth of 40% at the midpoint
• Interest & Other: approximately $120 million
• Adjusted income tax rate: 21%*
• Weighted average shares outstanding: approximately 375 million
Updated Fiscal Year 2027 Guidance
† :
•
Net Sales: $34.9 billion to $35.9 billion, growth of 27% at the midpoint
• Adjusted Operating Margin: 7.6% to 7.8%*
• Adjusted EPS: $4.84 to $5.16*, growth of 52% at the midpoint
• Adjusted income tax rate: 21%*
P R E S S R E L E A S E
Fiscal Year
2027
Guidance
Prior Updated CPI RMS + ITS
$33.7 - $34.9 - $35.9
Net Sales $35.2 billion +75% - 85% +8% - 11%
billion
Adjusted 11.5% -
Operating 7.0% - 7.2% 7.6% - 7.8% 11.7% 5.9% - 6.1%
Margin*
Adjusted $4.42 - $4.84 - $5.16
EPS* $4.74
*This is a forward-looking non-GAAP financial measure that cannot be reconciled
to its equivalent GAAP financial measure without unreasonable effort for the
reasons set forth in Schedule V attached to this press release.
† Reflects expected results for the full fiscal year and does not give effect to
the planned spin-off of the Cloud and Power Infrastructure segment. Includes
contributions from recent acquisitions closed subsequent to September 25, 2026.
Webcast and Conference Call
The Flex management team will host a conference call today, October 28, 2026, at
7 :30 AM (CT) / 8:30 AM (ET), to review second quarter fiscal 2027 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
leading brands design, build, and manage products that improve the world. With a
global footprint spanning 30 countries, Flex delivers advanced manufacturing and
supply chain solutions, innovative products and technology, and lifecycle
services that support customers from concept to scale. In the AI era, Flex is
helping customers accelerate data center deployment by solving power, heat, and
scale challenges through cutting-edge power and cooling technology and scalable
IT infrastructure solutions.
Contacts
Investors & Analysts
Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
Michelle.Simmons@flex.com
Media & Press
press@flex.com
P R E S S R E L E A S E
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; risks related to our ability to successfully execute
our strategic priorities, including the planned spin-off of our Cloud and Power
Infrastructure segment into an independent, publicly traded company, and to
achieve the anticipated benefits of such transaction, including risks that the
spin-off may not be completed on the anticipated timeline or at all, that the
spin-off may not achieve its intended benefits, that the transaction may have an
adverse impact on existing business relationships, and that the costs of the
spin-off may be greater than anticipated; 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, including recent developments in
Iran, any of which could lead to disruption, instability, and volatility in
global markets and negatively impact our operations and financial performance;
supply chain disruptions, including those involving suppliers who are sole or
primary sources, logistical constraints, manufacturing interruptions or delays,
or the failure to accurately forecast customer demand; the impact of
fluctuations in the pricing or availability of raw materials and components,
including semiconductors, labor and energy; our dependence on industries that
continually produce technologically advanced products with short product life
cycles; 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; risks associated with acquisitions and divestitures,
including the possibility that we may not fully realize their projected
benefits, including the acquisitions of Electrical Power Products, Inc. and EPC
Power Corp., and other events that could adversely impact the anticipated
benefits of the acquisition, including industry or economic conditions outside
of our control; 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; 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; 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. Any references to the planned spin-off, including its
timing, Form 10 status, and the leadership of each company following the
separation, are forward-looking and remain subject to applicable approvals and
completion of the spin-off.
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.
P R E S S R E L E A S E
SCHEDULE I
FLEX
UNAUDITED
CONDENSED
CONSOLIDATED
STATEMENTS
OF
OPERATIONS
(In
millions, Three-Month
except per Periods
share Ended
amounts) September September 26,
GAAP: 25, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net sales $ 8,491 $ 6,804
Cost of sales 7,664 6,181
Restructuring 15 9
charges
Gross profit 812 614
Selling,
general and 371 260
administrati…
expenses
Restructuring
and — 42
impairment
charges
Intangible 27 16
amortization
Operating 414 296
income
Interest 69 52
expense
Interest 13 10
income
Other charges -7 -13
(income), net
Equity in
earnings
(losses) of 5 -5
unconsolidat…
affiliates
Income before 370 262
income taxes
Provision for 107 63
income taxes
Net income $ 263 $ 199
GAAP EPS
Diluted
earnings per $ 0.70 $ 0.52
share
Diluted
shares used
in computing 374 380
per share
amounts
See Schedule
II for the
reconciliati…
of GAAP to
non-GAAP
financial
measures. See
the
accompanying
notes on
Schedule V
attached to
this press
release.
P R E S S R E L E A S E
FLEX
UNAUDITED
CONDENSED
CONSOLIDAT…
STATEMENTS
OF
OPERATIONS
(In
millions, Six-Month
except per Periods
share Ended
amounts) September September 26,
GAAP: 25, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net sales $ 16,419 $ 13,379
Cost of 14,841 12,168
sales
Restructuri… 19 25
charges
Gross profit 1,559 1,186
Selling,
general and 705 493
administrat…
expenses
Restructuri…
and
impairment -2 49
charges
(reversal)
Intangible 50 37
amortization
Operating 806 607
income
Interest 129 103
expense
Interest 26 23
income
Other
charges -44 -6
(income),
net
Equity in
earnings
(losses) of — -25
unconsolida…
affiliates
Income
before 747 508
income taxes
Provision
for income 199 117
taxes
Net income $ 548 $ 391
GAAP EPS
Diluted
earnings per $ 1.47 $ 1.03
share
Diluted
shares used
in computing 374 381
per share
amounts
See Schedule
II for the
reconciliat…
of GAAP to
non-GAAP
financial
measures.
See the
accompanying
notes on
Schedule V
attached to
this press
release.
P R E S S R E L E A S E
SCHEDULE II
FLEX
RECONCI…
OF GAAP
TO
NON-GAAP
FINANCI…
MEASURES
(In
million…
except
per
share
amounts Three-Mo…
and Periods Septemb… September
percent… Ended 25, 2026 26, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
operati…
income $ 414 4.9% $ 296 4.4%
and
margin %
Intangib… 27 16
amortiza…
Stock-ba… 43 37
compensa…
Restruct…
and 13 51
impairme…
charges
Legal and 110 9
other
Non-GAAP
operati…
income $ 607 7.1% $ 409 6.0%
and
margin %
GAAP
provisi…
for $ 107 $ 63
income
taxes
Intangib…
amortiza… 6 3
benefit
Other tax
related 5 14
adjustme…
Non-GAAP
provisi…
for $ 118 $ 80
income
taxes
GAAP net $ 263 $ 199
income
Intangib… 27 16
amortiza…
Stock-ba… 43 37
compensa…
Restruct…
and 13 51
impairme…
charges
Legal and 110 9
other
Equity in
losses of — 8
unconsol…
affiliat…
Interest
and -2 -3
other,
net
Adjustme… -11 -17
for taxes
Non-GAAP
net $ 443 $ 300
income
Diluted
earnings
per
share:
GAAP $ 0.70 $ 0.52
Non-GAAP $ 1.18 $ 0.79
Free
Cash
Flow:
Net cash
provided
by $ 501 $ 453
operating
activiti…
Purchases
of
property -241 -150
and
equipment
Proceeds
from the
disposit…
of 1 2
property
and
equipment
Free Cash $ 261 $ 305
Flow
See the
accompan…
notes on
Schedule
V
attached
to this
press
release.
P R E S S R E L E A S E
FLEX
RECONCI…
OF GAAP
TO
NON-GAAP
FINANCI…
MEASURES
(In
million…
except
per
share
amounts Six-Month
and Periods Septemb… September
percent… Ended 25, 2026 26, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
operati…
income $ 806 4.9% $ 607 4.5%
and
margin %
Intangib… 50 37
amortiza…
Stock-ba… 94 71
compensa…
Restruct…
and 14 74
impairme…
charges
Legal and 177 15
other
Non-GAAP
operati…
income $ 1,141 6.9% $ 804 6.0%
and
margin %
GAAP
provisi…
for $ 199 $ 117
income
taxes
Intangib…
amortiza… 11 8
benefit
Other tax
related 7 28
adjustme…
Non-GAAP
provisi…
for $ 217 $ 153
income
taxes
GAAP net $ 548 $ 391
income
Intangib… 50 37
amortiza…
Stock-ba… 94 71
compensa…
Restruct…
and 14 74
impairme…
charges
Legal and 177 15
other
Equity in
losses of — 25
unconsol…
affiliat…
Interest
and -48 -3
other,
net
Adjustme… -18 -36
for taxes
Non-GAAP
net $ 817 $ 574
income
Diluted
earnings
per
share:
GAAP $ 1.47 $ 1.03
Non-GAAP $ 2.18 $ 1.51
Free
Cash
Flow:
Net cash
provided
by $ 777 $ 852
operating
activiti…
Purchases
of
property -477 -283
and
equipment
Proceeds
from the
disposit…
of 2 4
property
and
equipment
Free Cash $ 302 $ 573
Flow
See the
accompan…
notes on
Schedule
V
attached
to this
press
release.
P R E S S R E L E A S E
SCHEDULE III
FLEX
UNAUDITED
CONDENSED
CONSOLIDAT…
BALANCE
SHEETS
(In
millions)
ASSETS As of
Current September As of March
assets: 25, 2026 31, 2026
──────────────────────────────────────────────────────────────────────────────
Cash and
cash $ 3,083 $ 2,389
equivalents
Accounts
receivable, 5,777 4,679
net of
allowance
Contract 1,443 1,063
assets
Inventories 7,323 5,845
Other
current 2,548 2,356
assets
Total
current 20,174 16,332
assets
Property
and 2,849 2,505
equipment,
net
Operating
lease 860 659
right-of-u…
assets, net
Goodwill 1,843 1,369
Other
intangible 701 283
assets, net
Other
non-current 950 912
assets
Total $ 27,377 $ 22,060
assets
LIABILITIES
AND
SHAREHOLDE…
EQUITY
Current
liabilitie…
Accounts $ 9,707 $ 8,055
payable
Accrued
payroll and 649 671
benefits
Deferred
revenue and
customer 2,534 2,156
working
capital
advances
Other
current 2,159 1,134
liabilities
Total
current 15,049 12,016
liabilities
Long-term
debt, net 5,213 3,751
of current
portion
Operating
lease 770 565
liabilitie…
non-current
Other
non-current 538 584
liabilities
Total 21,570 16,916
liabilities
Total
shareholde… 5,807 5,144
equity
Total
liabilities
and $ 27,377 $ 22,060
shareholde…
equity
P R E S S R E L E A S E
SCHEDULE IV
FLEX
UNAUDITED
CONDENSED
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
(In millions)
CASH FLOWS FROM Six-Month Periods
OPERATING Ended
ACTIVITIES: September 25, 2026 September 26, 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 548 $ 391
Depreciation,
amortization and
other 296 298
impairment
charges
Changes in
working capital -67 163
and other,
net
Net cash provided
by operating 777 852
activities
CASH FLOWS FROM
INVESTING
ACTIVITIES:
Purchases of
property and -477 -283
equipment
Proceeds from the
disposition of 2 4
property and
equipment
Acquisition of
businesses, net -1,134 -43
of cash
acquired
Proceeds from
divestiture of
businesses, 90 -4
net of cash held
in divested
businesses
Other investing -1 -8
activities, net
Net cash used in
investing -1,520 -334
activities
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Proceeds from
bank borrowings 2,830 500
and
long-term debt
Payments of bank
borrowings,
long-term -1,401 -535
debt and other
financing
liabilities
Payments for
repurchases of — -544
ordinary
shares
Other financing 7 4
activities, net
Net cash (used
in) provided by 1,436 -575
financing
activities
Effect of
exchange rates on 1 17
cash and
cash equivalents
Net change in
cash and cash 694 -40
equivalents
Cash and cash
equivalents, 2,389 2,289
beginning of
period
Cash and cash
equivalents, end $ 3,083 $ 2,249
of period
P R E S S R E L E A S E
SCHEDULE V
FLEX AND SUBSIDIARIES
NOTES TO SCHEDULES I and II
To supplement Flex’s unaudited selected financial data presented consistent with
U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses
certain non-GAAP financial measures that exclude certain charges and gains,
including non-GAAP operating income, non-GAAP net income and non-GAAP net income
per diluted share. These supplemental measures exclude certain legal and other
charges, restructuring charges, customer-related asset impairments (recoveries),
stock-based compensation expense, intangible amortization, other discrete events
as applicable and the related tax effects. These non-GAAP measures are not in
accordance with or an alternative for GAAP and may be different from non-GAAP
measures used by other companies. We believe that these non-GAAP measures have
limitations in that they do not reflect all of the amounts associated with
Flex’s results of operations as determined in accordance with GAAP and that
these measures should only be used to evaluate Flex’s results of operations in
conjunction with the corresponding GAAP measures. The presentation of this
additional information is not meant to be considered in isolation or as a
substitute for the most directly comparable GAAP measures. We compensate for the
limitations of non-GAAP financial measures by relying upon GAAP results to gain
a complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain items to
facilitate a review of the comparability of the Company’s operating performance
on a period-to-period basis because such items are not, in our view, related to
the Company’s ongoing operational performance. We use non-GAAP measures to
evaluate the operating performance of our business, for comparison with
forecasts and strategic plans, for calculating return on investment, and for
benchmarking performance externally against competitors. In addition,
management’s incentive compensation is determined using certain non-GAAP
measures. Also, when evaluating potential acquisitions, we exclude certain items
described below from consideration of the target’s performance and valuation.
Since we find these measures to be useful, we believe that investors benefit
from seeing results “through the eyes” of management in addition to seeing GAAP
results. We believe that these non-GAAP measures, when read in conjunction with
the Company’s GAAP financials, provide useful information to investors by
offering:
• the ability to make more meaningful period-to-period comparisons of the
Company’s ongoing operating results;
• the ability to better identify trends in the Company’s underlying business and
perform related trend analysis;
• a better understanding of how management plans and measures the Company’s
underlying business; and
• an easier way to compare the Company’s operating results against analyst
financial models and operating results of competitors that supplement their GAAP
results with non-GAAP financial measures.
We present forward‑looking non‑GAAP financial measures in our third quarter and
full year fiscal 2027 guidance, including adjusted operating income, adjusted
operating margin, adjusted income tax rate, and adjusted EPS. We do not provide
a reconciliation of these measures to the most directly comparable GAAP measures
because the information necessary to do so is not available without unreasonable
effort due to the inherent variability, complexity, and uncertainty in
forecasting certain items required for such a reconciliation. These items may
include restructuring charges and impairment charges, among others. The
information that is unavailable could be material and could significantly affect
our GAAP results.
P R E S S R E L E A S E
The following are explanations of each of the adjustments that we incorporate
into non-GAAP measures, as well as the reasons for excluding each of these
individual items in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated
fair value of unvested restricted share units granted to employees and assumed
in business acquisitions. The Company believes that the exclusion of these
charges provides for more accurate comparisons of its operating results to peer
companies due to the varying available valuation methodologies, subjective
assumptions and the variety of award types. In addition, the Company believes it
is useful to investors to understand the specific impact stock-based
compensation expense has on its operating results.
Intangible amortization consists primarily of non-cash charges that can be
impacted by, among other things, the timing and magnitude of acquisitions. The
Company considers its operating results without these charges when evaluating
its ongoing performance and forecasting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial measures. The Company
believes that the assessment of its operations excluding these costs is relevant
to its assessment of internal operations and comparisons to the performance of
its competitors.
Restructuring and impairment charges include severance charges at existing sites
and corporate SG&A functions as well as asset impairment, and other charges
related to the closures and consolidations of certain operating sites and
targeted activities to restructure the business. These costs also include asset
impairment charges related to assets significantly impacted by the geopolitical
events on the basis of management's best estimate of the recoverable value of
assets. These costs may vary in size based on the Company’s initiatives, are not
directly related to ongoing or core business results, and do not reflect
expected future operating expenses. These costs are excluded by the Company’s
management in assessing current operating performance and forecasting its
earnings trends and are therefore excluded by the Company from its non-GAAP
measures.
During the three and six-month periods ended September 25, 2026, the Company
recognized $13 million, most of which related to employee severance. During the
three and six-month periods ended September 26, 2025 the Company recognized $10
million and approximately $33 million of restructuring charges, respectively,
most of which related to employee severance.
During the six-month period ended September 25, 2026, the Company recognized $1
million and during three and six-month periods ended September 26, 2025, the
Company recognized $41 million in asset impairments, inventory write-downs and
other charges as a result of an August 21, 2025 missile strike on the Company’s
Mukachevo, Ukraine operations located in Western Ukraine.
Legal and other consist primarily of costs not directly related to core business
results and may include matters relating to commercial disputes, government
regulatory and compliance, intellectual property, antitrust, tax, employment or
shareholder issues, product liability claims and other costs such as
acquisition, portfolio optimization related costs and asset impairment. These
costs are excluded by the Company’s management in assessing c urrent operating
performance and forecasting its earnings trends and are therefore excluded by
the Company from its non-GAAP measures. During the three and six-month periods
ended September 25, 2026, the Company incurred approximately $91 million and
$144 million, respectively, primarily related to the planned spin-off of its
Cloud and Power Infrastructure segment into a separate publicly traded company
as well as $19 million and $33 million, respectively, of acquisition costs.
During the three and six-month periods ended September 26, 2025, the Company
incurred approximately $9 million and $15 million, respectively, related to
acquisition costs.
Equity in losses of unconsolidated affiliates consists of various other types of
items that are not directly related to ongoing or core business results, such as
significant gains or losses associated with certain non-
core investments. The Company excludes these items because they are not related
to the Company's ongoing operating performance or do not affect core operations.
Excluding these amounts provides investors with a basis to compare Company
performance against the performance of other companies without this variability.
During the three and six-month periods ended September 26, 2025, the Company
recognized approximately $8 million and $25 million, respectively, of equity in
losses from a reduced valuation of a certain non-core investment fund. No such
costs were incurred in the first half of fiscal year 2027.
P R E S S R E L E A S E
Interest and other, net consist of various other types of items that are not
directly related to ongoing or core business results, such as the gain or losses
related to certain divestitures, currency translation reserve write-offs upon
liquidation of certain legal entities, debt extinguishment costs an d impairment
charges or gains associated with certain non-core investments. The Company
excludes these items because they are not related to the Company’s ongoing
operating performance or do not affect core operations. During the three and
six-month periods ended September 25, 2026, the Company recognized $2 million
and $48 million, respectively, of gains on the divestiture of a subsidiary.
Adjustments for taxes relates to the tax effects of the various adjustments that
we incorporate into non-GAAP measures in order to provide a more meaningful
measure on non-GAAP net income and certain adjustme nts related to non-recurring
settlements of tax contingencies or other non-recurring tax charges, when
applicable . Effective in fiscal year 2026, the Company adopted an annual
normalized tax rate for the purpose of determining the tax effect of non-GAAP
adjustments. In estimating the normalized tax rate, the Company utilizes a full-
year projection of earnings that considers the mix of earnings across tax
jurisdictions, existing tax positions and other significant tax matters.
During the three and six-month periods ended September 25, 2026, the Company
recognized a $11 million and $18 million net tax benefit, respectively. During
the three and six-month periods ended September 26, 2025, the Company recognized
a $17 million and $36 million net tax benefit, respectively, related to the tax
effects of various adjustments that are incorporated into non-GAAP measures on
restructuring and other.
Free cash flow is an important liquidity metric because it measures, during a
given period, the amount of cash generated that is available to repay debt
obligations, make investments, fund acquisitions, repurchase company shares and
for certain other activities. The Company's free cash flow is defined as cash
flows from operating activities, less net purchases of property and equipment
and proceeds from the disposition of property and equipment ("net capital
expenditures"), allowing us to present free cash flow on a consistent basis for
investors.
During the three and six-month periods ended September 25, 2026, the Company
recognized $261 million and $302 million of free cash inflow, respectively.
During the three and six-month periods ended September 26, 2025, the Company
recognized $305 million and $573 million of free cash inflow, respectively. Free
Cash Flow for the three and six-month periods ended September 25, 2026, was
negatively impacted by $61 million and $85 million respectively, of separation
costs incurred in connection with the spin-off of Flex's Cloud & Power
Infrastructure segment. Free cash flow is not a measure of liquidity under U.S.
GAAP, and may not be defined and calculated by other companies in the same
manner.