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Flex
(NASDAQ:FLEX)
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Rating:63Neutral
Price Target:
$124.00
▲(13.50% Upside)
Action:Reiterated
Date:10/05/26
FLEX scores as moderately attractive. The biggest support is solid financial performance (return to growth and improving operating margins) and a positive earnings outlook with strong FY27 guidance, while the main drags are high valuation (P/E ~45 with no dividend support) and mixed technical momentum (negative MACD and below the 100-day average).
Positive Factors
Strong growth and earnings outlook
Strong Q1 growth, record adjusted EPS, and ambitious FY27 guidance indicate broadening demand across Flex’s business. If achieved, the combination of higher revenue and operating-margin expansion should improve earnings power and provide resources to support continued investment over the next several quarters.
Negative Factors
Structurally thin profitability
Flex operates with a thin margin profile, so relatively small changes in pricing, product mix, utilization, or execution can materially affect earnings. Although EBIT margins are improving, the limited operating cushion makes profitability less resilient than that of businesses with stronger structural margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and earnings outlook
Strong Q1 growth, record adjusted EPS, and ambitious FY27 guidance indicate broadening demand across Flex’s business. If achieved, the combination of higher revenue and operating-margin expansion should improve earnings power and provide resources to support continued investment over the next several quarters.
Read all positive factors
Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.85B
Dividend YieldN/A
Average Volume (3M)2.98M
Price to Earnings (P/E)46.1
Beta (1Y)1.92
Revenue Growth12.25%
EPS Growth14.09%
CountryUS
Employees149,686
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.59
Shares Outstanding369,460,450
10 Day Avg. Volume2,723,407
30 Day Avg. Volume2,976,466
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 Cap1.29
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit20.88
Enterprise Value/Ebitda28.69
Forecast
1Y Price Target
$157.14Price Target Upside43.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)4.7
Revenue Forecast (FY)$34.61B
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 manufacturing and supply chain services to customers under contractual arrangements, generating revenue mainly from the sale of manufactured products and related services. Its core revenue stream is producti...
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 | 2.02B | 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
Positive
109.25
Price Trends
114.29
Positive
127.34
Negative
100.44
Positive
Market Momentum
1.11
Negative
57.50
Neutral
81.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLEX, the sentiment is Positive. The current price of 109.25 is below the 20-day moving average (MA) of 112.74, below the 50-day MA of 114.29, and above the 200-day MA of 100.44, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $7.27B | 38.52 | 12.46% | ― | 14.20% | 15.36% | |
66 Neutral | $3.09B | 56.24 | 4.81% | 0.82% | 8.87% | 39.10% | |
66 Neutral | $17.53B | 37.70 | 21.01% | ― | 35.73% | 43.02% | |
64 Neutral | $32.40B | 30.34 | 74.11% | 0.11% | 20.64% | 63.69% | |
64 Neutral | $12.22B | 38.49 | 12.57% | ― | 58.56% | 19.37% | |
63 Neutral | $44.85B | 46.08 | 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
119.34
59.50
99.43%
BHE
Benchmark Electronics
83.23
45.52
120.73%
FN
Fabrinet
497.99
114.56
29.88%
JBL
Jabil
299.47
93.18
45.17%
PLXS
Plexus
266.57
119.29
81.00%
SANM
Sanmina-Sci
219.41
84.73
62.91%
Flex Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flex Raises $2 Billion for Axiom Spin-Off
Positive
Oct 5, 2026
Flex announced on October 5, 2026 that funds led by General Catalyst and Koch Equity Development agreed to invest $2.0 billion in Series A convertible preferred stock of Axiom Solutions International, its Cloud and Power Infrastructure segment, va...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flex Secures New Term Loan to Support Acquisition
Positive
Oct 2, 2026
On September 29, 2026, Flex Ltd. entered into a new senior term loan credit facility of $3.3 billion with a syndicate of lenders and Citibank as administrative agent, which remains undrawn and must be tapped in a single advance within a defined av...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Flex outlines leadership and board plans for spin-off
Positive
Sep 15, 2026
On September 11, 2026, Flex’s board appointed George R. Oliver and Mark Eubanks as independent directors, effective September 24, 2026, with standard cash and equity compensation and coverage under existing indemnification and DO insurance a...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Flex to Acquire EPC Power in Major Deal
Positive
Sep 4, 2026
On September 3, 2026, Flex agreed to acquire EPC Power for $4.4 billion in cash, with closing targeted for the fourth quarter of 2026, after which EPC will be folded into Flex’s Cloud and Power Infrastructure segment ahead of its planned spi...
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...
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.