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Flex
(NASDAQ:FLEX)
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Rating:63Neutral
Price Target:
$131.00
▲(10.54% Upside)
Action:Reiterated
Date:08/08/26
The score is driven primarily by solid-but-not-elite financial performance (improving operations and revenue growth, but thin margins and weaker recent free-cash-flow trends). The latest earnings call is a key positive due to strong FY27 growth and margin guidance, though lowered FCF conversion and higher CapEx temper confidence. Technical signals are mixed/soft (negative MACD), and valuation is a meaningful headwind due to a high P/E with no dividend yield support.
Positive Factors
Accelerating revenue and earnings growth
Strong Q1 execution and ambitious FY27 targets indicate broadening demand across Flex’s end markets. The combination of revenue growth, expected margin expansion and rising EPS supports improved operating leverage if program ramps continue.
Negative Factors
Structurally thin profitability
Contract manufacturing typically operates with limited pricing power, and Flex’s thin net margin leaves little cushion against pricing pressure, utilization shortfalls, component costs or unfavorable program mix. Sustaining margin gains will require continued execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue and earnings growth
Strong Q1 execution and ambitious FY27 targets indicate broadening demand across Flex’s end markets. The combination of revenue growth, expected margin expansion and rising EPS supports improved operating leverage if program ramps continue.
Read all positive factors
Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.42B
Dividend YieldN/A
Average Volume (3M)7.48M
Price to Earnings (P/E)43.6
Beta (1Y)1.89
Revenue Growth12.25%
EPS Growth14.09%
CountryUS
Employees149,686
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.59
Shares Outstanding369,402,980
10 Day Avg. Volume3,748,096
30 Day Avg. Volume7,479,931
Financial Highlights & Ratios
PEG Ratio3.16
Price to Book (P/B)4.76
Price to Sales (P/S)0.88
P/FCF Ratio23.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$157.14Price Target Upside32.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.7
Revenue Forecast (FY)$34.47B
Flex Business Overview & Revenue Model
Company Description
Flex Ltd. is a global provider offering extensive design, engineering, manufacturing, and supply chain management solutions to original equipment manufacturers (OEMs) across Asia, the Americas, and Europe. Its operations are structured into three ...
How the Company Makes Money
Flex primarily makes money by providing contract manufacturing and related supply-chain services to original equipment manufacturers (OEMs) and other technology/product companies. Revenue is largely generated from: (1) manufacturing and assembly s...
Flex Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: double-digit total revenue growth (21% YoY), significant segment acceleration (CPI +35% YoY with ambitious FY growth guidance), margin expansion, record adjusted EPS, solid ITS and RMS performance, and on-track progress toward a tax-free spin-off and strategic partnerships. Offsetting considerations include modest free cash flow in the quarter due to one-time spin costs (FCF conversion guidance lowered to ~40%), inventory build, elevated CapEx to fund CPI capacity, and early-stage cooling commercialization which must scale. Overall, the positives — strong topline growth, margin expansion, visible CPI bookings, and strategic positioning for AI infrastructure — materially outweigh the near-term cash flow and execution-related headwinds.Positive Updates
Strong Revenue Growth and Record EPS
Q1 revenue of $7.9 billion, up 21% year-over-year; record adjusted EPS of $1.00, up 39% year-over-year.
Negative Updates
Weak Free Cash Flow and Spin-off Costs
Q1 free cash flow was $41 million and was negatively impacted by $24 million of one-time cash costs related to the announced spin-off. Incorporating spin costs, management now expects free cash flow conversion of ~40% versus the prior 60% exclusionary figure.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Revenue Growth and Record EPS
Q1 revenue of $7.9 billion, up 21% year-over-year; record adjusted EPS of $1.00, up 39% year-over-year.
Read all positive updates
Company Guidance
Flex provided full-year fiscal 2027 guidance calling for revenue of $33.7B–$35.2B (up ~23% at the midpoint), adjusted operating margin of 7.7%–8.2% (≈+80 bps at the midpoint), an adjusted tax rate of ~21%, adjusted EPS of $4.42–$4.74 (≈+39% at the midpoint), and CapEx of $1.5B–$1.6B, while updating expected free cash flow conversion to ~40% when spin costs are included (previously 60% excluding spin costs). For Q2 they guide revenue of $7.95B–$8.25B (≈+19% at the midpoint), adjusted operating income of $535M–$565M, interest/other ~ $58M, an adjusted tax rate ~21%, and adj EPS $1.00–$1.07 (≈+32% at the midpoint) on ~375M weighted shares. Segment outlook for FY27 is RMS up mid- to high-single digits, ITS up high-single to low-double digits, and CPI up 65%–75% (power > cloud); Q2 segment guides are RMS mid- to high-single, ITS high-single to low-double, and CPI +45%–55%. These targets follow a strong Q1: revenue $7.9B (+21% YoY), adjusted gross profit $761M (9.6% margin, +50 bps), adjusted operating profit $534M (6.7% margin, +70 bps), EPS $1.00 (+39%), segment Q1 revenues of RMS $2.7B (+12%), ITS $3.1B (+20%), CPI $2.2B (+35%), free cash flow $41M (including $24M one-time spin costs), inventory +10% sequential / +24% YoY (56 days net of advances), and net CapEx $235M (~3% of revenues).Flex Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.27B | 27.91B | 25.81B | 26.41B | 28.50B | 24.63B |
| Gross Profit | 2.78B | 2.56B | 2.16B | 1.86B | 1.98B | 1.78B |
| EBITDA | 1.90B | 1.92B | 1.78B | 1.41B | 1.54B | 1.61B |
| Net Income | 973.00M | 880.00M | 838.00M | 1.01B | 793.00M | 936.00M |
Balance Sheet | ||||||
| Total Assets | 25.20B | 22.06B | 18.38B | 18.26B | 21.41B | 19.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.84B | 2.39B | 2.29B | 2.47B | 3.16B | 2.96B |
| Total Debt | 5.93B | 4.32B | 4.15B | 3.89B | 4.20B | 4.75B |
| Total Liabilities | 19.70B | 16.92B | 13.38B | 12.93B | 15.70B | 15.12B |
| Stockholders Equity | 5.50B | 5.14B | 5.00B | 5.33B | 5.35B | 4.13B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.05B | 1.07B | 796.00M | 315.00M | 581.00M |
| Operating Cash Flow | 1.80B | 1.69B | 1.50B | 1.33B | 950.00M | 1.02B |
| Investing Cash Flow | -1.76B | -672.00M | -838.00M | -492.00M | -604.00M | -951.00M |
| Financing Cash Flow | -96.00M | -924.00M | -821.00M | -1.66B | 2.00M | 280.00M |
Flex Technical Analysis
Negative
118.51
Price Trends
132.66
Negative
120.80
Negative
92.00
Positive
Market Momentum
-2.21
Negative
40.49
Neutral
36.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLEX, the sentiment is Negative. The current price of 118.51 is below the 20-day moving average (MA) of 119.74, below the 50-day MA of 132.66, and above the 200-day MA of 92.00, indicating a neutral trend. The MACD of -2.21 indicates Negative momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 36.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLEX.
Flex Risk Analysis
Flex disclosed 44 risk factors in its most recent earnings report. Flex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.63B | 34.13 | 12.57% | ― | 58.56% | 19.37% | |
72 Outperform | $35.48B | 39.85 | 62.42% | 0.10% | 17.80% | 55.75% | |
69 Neutral | $6.75B | 35.30 | 12.46% | ― | 14.20% | 15.36% | |
66 Neutral | $13.29B | -126.06 | -1.87% | ― | 5.80% | -140.22% | |
64 Neutral | $17.95B | 34.24 | 8.52% | 0.39% | -29.80% | -23.46% | |
63 Neutral | $44.42B | 43.64 | 18.71% | ― | 12.25% | 14.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FLEX
Flex
113.03
63.62
128.76%
JBL
Jabil
322.77
117.95
57.58%
PLXS
Plexus
244.26
113.71
87.10%
SANM
Sanmina-Sci
194.53
83.49
75.19%
TRMB
Trimble
59.25
-21.02
-26.19%
FTV
Fortive
58.90
11.35
23.87%
Flex Corporate Events
Executive/Board ChangesStock BuybackShareholder Meetings
Flex Extends $2 Billion Share Repurchase Authorization
Positive
Aug 7, 2026
On August 5, 2026, Flex Ltd. held its 2026 Annual General Meeting, where shareholders voted 323,004,668 of 366,389,554 entitled Ordinary Shares and re-elected nine directors, re-appointed Deloitte Touche LLP as independent auditors for the 2027 f...
Business Operations and StrategyExecutive/Board Changes
Flex Details Leadership Plan Ahead of SpinCo Launch
Positive
Jul 29, 2026
On July 29, 2026, Flex announced detailed leadership teams for both the parent company and SpinCo, its planned independent, publicly traded cloud and power infrastructure business expected to be spun off in the first quarter of 2027, subject to bo...
Business Operations and StrategyExecutive/Board Changes
Flex Adopts New Performance-Based Executive Bonus Plan
Positive
Jun 12, 2026
On June 11, 2026, Flex Ltd.’s board approved an Annual Incentive Bonus Plan for fiscal 2027 that ties executive cash bonuses to operating profit, free cash flow, and revenue targets at the company level. The plan differentiates target award ...
Business Operations and StrategyPrivate Placements and Financing
Flex Establishes New $1.45 Billion Term Loan Facility
Positive
Jun 2, 2026
On May 29, 2026, Flex Ltd. entered into a new $1.45 billion senior term loan credit facility with a syndicate of lenders and Citibank, N.A. as administrative agent, which was fully funded on the closing date and matures on November 29, 2027. The f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.