Flex (FXI) Q2 2027 Earnings Report
DE:FXI Q2 2027 EPS Results
- Actual EPS
- EUR 1.06
- Consensus EPS
- EUR 0.95
- Beat/Miss
- Beat by +EUR 0.11
- One Year Ago EPS
- EUR 0.71
DE:FXI Q2 2027 Revenue Results
- Actual Revenue
- EUR 7.61B
- Expected Revenue
- EUR 7.33B
- Beat/Miss
- Beat by +EUR 286.46M
- YoY Revenue Growth
- +24.79%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
Flex's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
The call was strongly positive. Highlights significantly outweighed the lowlights, with record quarterly earnings, broad-based revenue and margin growth, raised fiscal guidance, strong CPI momentum, progress on the Axiom spin-off, and completion of the EPC Power acquisition. The main challenges were elevated near-term interest expense, higher inventory, supply-chain shortages, consumer-market weakness, sequential RMS margin pressure, nascent cooling capabilities, and hyperscaler concentration.
For fiscal year 27, revenue is expected to be between $34.9 and $35.9 billion, up 27% of the midpoint, with CPI revenue increasing between 75-85% and combined RMS and ITS revenue increasing between 8-11%; adjusted operating margin is expected to be between 7.6-7.8%, adjusted tax rate approximately 21%, adjusted EPS between $4.84 and $5.16 per share, CapEx in the range of $1.5 billion to $1.6 billion, and free cash flow conversion approximately 40%. RMS revenue is expected to be up mid single digits to high single digits, ITS revenue up low double digits to low teens, and CPI revenue up 75% to 85%, with CPI operating margins expected to expand approximately 240 points year over year assuming the midpoint of the guidance. For the third quarter, RMS revenue is expected to be up low single digits to mid single digits, ITS revenue up mid single digits to high single digits, CPI revenue up 105-115%, total Flex revenue between $8.87 and $9.17 billion, adjusted operating income between $685 million and $715 million, Interest and other expense around $120 million, adjusted tax rate around 21%, and adjusted EPS between $1.19 and $1.25 per share based on approximately 370 million weighted average shares outstanding. Approximately 10 percentage points of CPI’s fiscal year 27 growth is related to acquisitions, and of the $950 million guide increase, approximately half is underlying improvement in Flex and the other half would approximately be the EPC acquisition; no new guide for FY 2028 was offered, although the prior 80% guide was expected to carry through.
- Record Quarterly Earnings and Strong Revenue GrowthSecond-quarter revenue was $8.5 billion, up 25% versus the prior year. Adjusted gross profit was $842 million, adjusted gross margin improved to 9.9%, up 60 basis points year over year, adjusted operating profit was $607 million, up 48%, and adjusted operating margin was 7.1%, up 110 basis points. Adjusted earnings per share reached a record $1.18, up 49%.
- Growth Across All Three SegmentsRevenue increased 9% in Regulated Manufacturing Solutions to $2.7 billion, 22% in Integrated Technology Solutions to $3.3 billion, and 54% in Cloud and Power Infrastructure to $2.5 billion. RMS adjusted operating margin was 6.4%, up 50 basis points; ITS margin was 5.5%, up 20 basis points; and CPI margin was 10.7%, up 240 basis points.
- Strong Power Segment PerformancePower segment operating margin increased to approximately 16%, up roughly 550 basis points year over year, driven by strong volume growth and the benefits of scaling investments made last year. Management said both embedded power and critical power are well positioned from a technology and growth perspective.
- CPI Growth and Margin Outlook RaisedFiscal year 27 CPI revenue is now expected to increase 75% to 85%, including the EPC Power acquisition, compared with the prior 65% to 75% range. CPI operating margins are expected to expand approximately 240 points year over year at the midpoint, up from the prior expectation of approximately 100-basis-points expansion.
- Full-Year Fiscal 27 Guidance IncreasedFiscal year 27 revenue is expected to be between $34.9 billion and $35.9 billion, up 27% at the midpoint. Adjusted operating margin is expected to be 7.6% to 7.8%, adjusted EPS is expected to be $4.84 to $5.16 per share, up 52% at the midpoint, and free cash flow conversion is expected to be approximately 40%.
- Positive Third-Quarter OutlookThird-quarter revenue is expected to be $8.87 billion to $9.17 billion, up 28% at the midpoint. Adjusted operating income is expected to be $685 million to $715 million, and adjusted EPS is expected to be $1.19 to $1.25 per share, up 40% at the midpoint. CPI revenue is expected to increase 105% to 115%, while RMS is expected to grow low single digits to mid single digits and ITS mid single digits to high single digits.
- RMS and ITS Deliver Fourth Consecutive Quarter of GrowthRMS and ITS together grew 16% in the second quarter, marking their fourth consecutive quarter of year-over-year growth. Growth was led by industrial in RMS and communications in ITS, with higher-value markets supporting margin expansion.
- Communications, Industrial, Healthcare, and Robotics MomentumCommunications remained strong, primarily through the advanced networking business tied to AI-related data-center buildout. Industrial over-delivered, led by energy infrastructure and robotics, while healthcare grew as expected and automotive performed as expected in a stable environment.
- Progress on Planned Axiom Spin-OffAxiom filed its Form 10 registration statement, expected leadership teams for both companies were announced, and the Axiom name and brand were unveiled. Management said the spin-off is progressing toward creating two focused companies with distinct identities, strategies, leadership teams, and capabilities.
- EPC Power Acquisition Completed and Portfolio ExpandedFlex completed the acquisition of EPC Power on October 14. Management said the acquisition strengthens Axiom's end-to-end power portfolio and adds engineering expertise in 800-volt architecture and solid-state transformers. Despite increased short-term interest expense, the acquisition is expected to be accretive in fiscal year 27.
- AI Infrastructure Capabilities ExpandedAxiom is combining power, thermal management, and compute capabilities to support AI infrastructure. At OCP, the company introduced prefabricated AI modules that management said can accelerate AI factory deployment by up to 50%. The company is also continuing to develop 800-volt technology, solid-state transformers, digital rectifiers, custom rack integration, aftermarket services, and cooling products.
- Capacity and Infrastructure Investments Support GrowthManagement said capacity plans and power requirements for the fiscal year 27 and fiscal year 28 CPI ramps have been in place for some time, including utility and substation connections. Fiscal year 27 net CapEx is expected to be $1.5 billion to $1.6 billion, with approximately two-thirds related to CPI and approximately one-third related to ITS and RMS.
- Cloud Business Focused on Custom, High-Value WorkThe cloud-related business is focused on custom configurations, specialized and highly technical work, testing capabilities, vertical integration, rack manufacturing, and aftermarket services. Management said a significant service ramp is underway in Memphis and that cooling product lines are planned for launch after testing and deployment.
- End-to-End Power Strategy and Efficiency PositioningManagement said compute, cooling, and power are all important to the overall strategy, with compute and power currently representing areas of market-share and technology leadership. Digital rectifiers available today can support 97% power efficiency to the rack while the company continues developing longer-term 800-volt and solid-state transformer technologies.
- Long-Term Flex Portfolio StrategyFollowing the spin-off, Flex intends to focus on industrial technology manufacturing and supply-chain markets including healthcare, energy infrastructure, communications, automotive, and robotics. Management said these markets benefit from regulatory requirements, long product life cycles, complex solutions, customer relationships, and capabilities that are difficult to replicate.
- Robotics Positioned as a Long-Term Growth MarketRobotics is one of Flex's six high-value markets. The company has deployed its own manufacturing automation platform, supplies elements of collaborative robots through its relationship with Teradyne, and is developing technology road maps related to humanoids, although management does not expect to deploy humanoid technologies in the next year or two.
- Underlying Growth Contributed to Fiscal Guidance IncreaseOf the approximately $950 million increase in the fiscal year 27 guide, management said approximately half represents underlying improvement in Flex and approximately half represents the EPC acquisition. About 10 percentage points of the 75% to 85% CPI growth outlook are related to acquisitions completed during the year.
- Strong First-Half MomentumManagement characterized the first half of fiscal year 27 as strong and said momentum is carrying into the second half. CPI performance has exceeded the original expectations established at the start of the year, and management expects the momentum to carry into the following year, with an updated fiscal year 28 outlook planned for Investor Day.
DE:FXI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2027 (Q3) | 1.12- | 0.78 | ― | ― |
| Oct 28, 2026 | 2027 (Q2) | 0.951.06 | 0.71 | 49.37% (+0.35) | |
| Jul 29, 2026 | 2027 (Q1) | 0.810.90 | 0.65 | 38.89% (+0.25) | |
| May 05, 2026 | 2026 (Q4) | 0.780.83 | 0.65 | 27.40% (+0.18) | |
| Feb 04, 2026 | 2026 (Q3) | 0.700.78 | 0.69 | 12.99% (+0.09) | |
| Oct 29, 2025 | 2026 (Q2) | 0.680.71 | 0.57 | 23.44% (+0.13) | |
| Jul 24, 2025 | 2026 (Q1) | 0.560.65 | 0.46 | 41.18% (+0.19) | |
| May 07, 2025 | 2025 (Q4) | 0.620.65 | 0.51 | 28.07% (+0.14) | |
| Jan 29, 2025 | 2025 (Q3) | 0.570.69 | 0.64 | 8.45% (+0.05) | |
| Oct 30, 2024 | 2025 (Q2) | 0.510.57 | 0.44 | 29.29% (+0.13) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
