Raising full-year net sales, adjusted operating margin and adjusted EPS guidance due to strong data center demand in our Power and Cloud businesses and continued disciplined execution.
Delivered GAAP operating margin of 4.4%, and adjusted operating margin of 6.0% marking the fourth consecutive quarter at or above an adjusted operating margin of 6%.
Reported GAAP EPS of $0.52, which includes $41M, or $0.11, of costs associated with the previously announced missile strike damage at our Ukraine facility, and Adjusted EPS of $0.79, a record adjusted EPS number.
AUSTIN, Texas, Oct. 29, 2025 /PRNewswire/ -- Flex (NASDAQ:FLEX) today announced results for its second quarter ended September 26, 2025.
Revathi Advaithi, CEO of Flex, stated: "We achieved a record Q2, and we continue to execute with discipline and deliver value for customers across business segments. As we continue to shift our portfolio toward higher margin businesses, we remain confident in our data center position and ability to offer complete, integrated solutions to the world's leading technology companies as they navigate the AI era."
Second Quarter Fiscal Year 2026 GAAP Summary:
Net Sales: $6.8 billion
GAAP Operating Income: $296 million
GAAP Net Income: $199 million
GAAP Earnings Per Share: $0.52
Cash provided by Operating Activities: $453 million
Second Quarter Fiscal Year 2026 Non-GAAP Summary:
Adjusted Operating Income: $409 million
Adjusted Net Income: $300 million
Adjusted Earnings Per Share: $0.79
Free Cash Flow: $305 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 2026 Guidance
Net Sales: $6.65 billion to $6.95 billion
Adjusted Operating Income: $405 million to $435 million*
Adjusted EPS: $0.74 to $0.80*
Interest & Other: approximately $54 million
Adjusted income tax rate: 21%*
Weighted average shares outstanding: 377 million
Fiscal Year 2026 Guidance Updated
Net Sales: $26.7 billion to $27.3 billion
Adjusted Operating Margin: between 6.2% and 6.3%*
Adjusted EPS: $3.09 to $3.17*
Interest & Other: approximately $180 million to $190 million
*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.
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 second 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 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 & AnalystsMichelle SimmonsSenior Vice President, Global Investor Relations and Public Relations(669)
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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, 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; 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
September 26, 2025
September 27, 2024
GAAP:
Net sales
$ 6,804
$ 6,545
Cost of sales
6,181
5,998
Restructuring charges
9
16
Gross profit
614
531
Selling, general and administrative expenses
260
216
Restructuring and impairment charges
42
2
Intangible amortization
16
16
Operating income
296
297
Interest expense
52
53
Interest income
10
16
Other charges (income), net
(13)
(8)
Equity in earnings (losses) of unconsolidated affiliates
(5)
(4)
Income before income taxes
262
264
Provision for (benefit from) income taxes
63
50
Net income
$ 199
$ 214
GAAP EPS
Diluted earnings per share
$ 0.52
$ 0.54
Diluted shares used in computing per share amounts
380
400
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.
FLEX
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
Six-Month Periods Ended
September 26, 2025
September 27, 2024
GAAP:
Net sales
$ 13,379
$ 12,859
Cost of sales
12,168
11,825
Restructuring charges
25
32
Gross profit
1,186
1,002
Selling, general and administrative expenses
493
429
Restructuring and impairment charges
49
11
Intangible amortization
37
32
Operating income
607
530
Interest expense
103
109
Interest income
23
32
Other charges (income), net
(6)
(6)
Equity in earnings (losses) of unconsolidated affiliates
(25)
(3)
Income before income taxes
508
456
Provision for (benefit from) income taxes
117
103
Net income
$ 391
$ 353
GAAP EPS
Diluted earnings per share
$ 1.03
$ 0.87
Diluted shares used in computing per share amounts
381
405
See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying noteson Schedule V attached to this press release.
SCHEDULE II
FLEX
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL ...
