Flex Ltd (FLEX) Q3 2025 Earnings Report

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Flex Ltd

FLEX

$62.41 1.99%

Exchange: NASDAQ | Sector: Technology | Industry: Hardware Equipment Parts

Q3 2025

Published: Jan 31, 2025

Earnings Highlights

Revenue of $6.56B up 6.3% year-over-year
EPS of $0.67 decreased by 27.7% from previous year
Gross margin of 9.1%
Net income of 263.00M
""We had a very strong Q3, delivering another record quarterly operating margin and EPS. Revenue came in at $6.6 billion, with operating margins at 6.1%... We're performing at incrementally higher levels."" - Revathi Advaithi

FLEX

Flex Ltd

Period Q3 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Flex Ltd (FLEX) reported strong third-quarter results for fiscal 2025, achieving a record revenue of $6.56 billion and an operating margin of 6.1%. With focused efforts on enhancing operational efficiency and a strategic mix of offerings, the company demonstrates robust growth particularly in the data center and health solutions markets, showing a year-over-year revenue growth of 45% in data centers. Management is optimistic about sustaining appeal through diversification and core innovations, evidenced by continuous investments in technology acquisitions like JetCool and Crown Systems. The outlook remains cautiously optimistic, with management projecting stable margins despite macroeconomic uncertainties.

Key Performance Indicators

Revenue

Increasing

6.56B

QoQ: 0.17% | YoY: 6.27%

Gross Profit

Increasing

594.00M

9.06% margin

QoQ: 11.86% | YoY: 16.24%

Operating Income

Increasing

334.00M

QoQ: 12.46% | YoY: 42.74%

Net Income

Decreasing

263.00M

QoQ: 22.90% | YoY: -33.42%

EPS

Decreasing

0.68

QoQ: 25.93% | YoY: -27.66%

Revenue Trend

Margin Analysis

Financial Highlights

1. Revenue Growth: Q3 2025 revenue increased by 6.27% YoY, reaching $6.56 billion, with a marginal QoQ growth of 0.17%.
2. Operating Income: Operating income saw substantial improvement, up 42.74% YoY to $334 million, driven by a favorable product mix and strong execution.
3. Net Income: The net income, although lower due to tax impacts, rose by 22.90% QoQ, totaling $263 million with an EPS of $0.77, marking a 43% increase YoY.
4. Cash Flow: Free cash flow of $306 million was generated in the quarter, contributing to a year-to-date total of $757 million, positioning the company favorably against its $800 million target for the year.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	6.56B	6.27%	0.17%
Gross Profit	594.00M	16.24%	11.86%
Operating Income	334.00M	42.74%	12.46%
Net Income	263.00M	-33.42%	22.90%
EPS	0.68	-27.66%	25.93%

Key Financial Ratios

Gross Profit Margin

Weak

9.06%

Gross profit margin is below industry norms, profitability concerns

Operating Profit Margin

Fair

5.09%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

4.01%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

1.44%

Return on assets suggests inefficient capital allocation

Return on Equity

Fair

5.27%

Return on equity is acceptable but below top-tier companies

Current Ratio

Adequate

1.41

Current ratio meets minimum requirements but limited cushion

Debt to Equity

Elevated

0.83

Debt-to-equity shows significant leverage, monitor debt levels

P/E Ratio

Value

14.12x

P/E ratio suggests potential undervaluation or stable earnings

Price to Book

Fair Value

2.98x

Price-to-book ratio reasonable for profitable companies

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2026	6,804.00	0.52	+4.0%	View
Q1 2026	6,575.00	0.50	+4.1%	View
Q4 2025	6,398.00	0.57	+37.1%	View
Q3 2025	6,556.00	0.67	+6.3%	View
Q2 2025	6,545.00	0.54	-7.9%	View

Flex Ltd (FLEX) Q3 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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