FLEX
Flex Ltd
Q1 2026 Report
Flex Ltd (FLEX) Q1 2026 Financial Results: Strong Performance in Data Center and Power Solutions...
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Executive Summary
Flex Ltd reported its Q4 2025 results with revenue of $6.4 billion, reflecting a year-over-year increase of nearly 4%. The company marked a record adjusted operating margin of 6.2%, bolstered by strategic shifts towards higher-margin business segments, particularly in cloud and power solutions. For the fiscal year, Flex achieved adjusted EPS of $2.65, up 23% year-over-year, alongside a free cash flow generation exceeding $1 billion—firmly above the company's target for free cash flow conversion at above 80%. Management's focus on operational efficiency, alongside aggressive portfolio management, has positioned Flex for sustained growth and profitability despite macroeconomic challenges. Management has expressed confidence in continuing to navigate market uncertainties effectively.
Key Performance Indicators
Revenue
6.40B
QoQ: -2.41% | YoY:37.14%
Gross Profit
563.00M
8.80% margin
QoQ: -5.22% | YoY:61.78%
Operating Income
305.00M
QoQ: -8.68% | YoY:60.00%
Net Income
222.00M
QoQ: -15.59% | YoY:116.16%
EPS
0.57
QoQ: -16.18% | YoY:137.50%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue**: $6.4 billion (up 4% YoY)
- **Net Income**: $222 million (up 28% YoY)
- **Adjusted Operating Margin**: 6.2% (new quarterly record, up 80 bps YoY)
- **Adjusted EPS**: $0.73 (increased from $0.57 YoY)
- **Free Cash Flow**: $1.1 billion (record high)