Flex (FLEX) Q1 2027 Earnings Report

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Previous Report: Q4 2026

FLEX Q1 2027 EPS Results

Actual EPS$1.00

Consensus EPS$0.90

Beat/MissBeat by +$0.10

One Year Ago EPS$0.72

FLEX Q1 2027 Revenue Results

Actual Revenue$7.93B

Expected Revenue$7.53B

Beat/MissBeat by +$399.62M

YoY Revenue Growth+20.58%

Earnings Announcement Details

QuarterQ1 2027

Date07/29/2026

TimeBefore Open

Conference CallWednesday, July 29, 2026

FLEX Upcoming Earnings

Flex's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q1 2027 Earnings Call Audio

FLEX Q1 2027 Earnings Call

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Q1 2027 Earnings Slide Deck

Q1 2027 Earnings Call Summary

Q1 2027

Earnings Call Date:Jul 29, 2026|

% Change Since:

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.

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).

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.

Margin Expansion and Profitability

Adjusted gross margin improved to 9.6% (up 50 bps YoY). Adjusted operating profit of $534 million, up 35% YoY, with adjusted operating margin of 6.7% (up 70 bps YoY).

Cloud & Power Infrastructure (CPI) Acceleration

CPI revenue of $2.2 billion, up 35% YoY; adjusted operating margin 9.7% (up 20 bps YoY). Company guidance for CPI growth of roughly 65%–75% for FY27 (management referenced ~70% growth cadence) and Q2 CPI revenue growth guide of 45%–55% as new programs ramp; >90% of CPI business booked visibility for the next three quarters.

Strong Performance in Communications and Industrial

Integrated Technology Solutions (ITS) revenue $3.1 billion, up 20% YoY with margin improvement; Regulated Manufacturing Solutions (RMS) revenue $2.7 billion, up 12% YoY with adjusted operating margin up 130 bps YoY driven by industrial strength (warehouse automation, robotics, energy infrastructure).

Ambitious Fiscal 2027 Guidance

Full-year FY27 revenue guidance $33.7B–$35.2B (up ~23% at midpoint); adjusted operating margin guidance 7.7%–8.2% (~+80 bps at midpoint); adjusted EPS guidance $4.42–$4.74 (up ~39% at midpoint); CapEx guidance $1.5B–$1.6B.

Strategic Progress: Spin-off On Track and Corporate Recognition

Separation management office making strong progress; on track for tax-free spin-off in Q1 calendar 2027. Company was recently added to the S&P 500 and announced leadership teams for both standalone companies.

Product & Partnership Momentum

Expanded manufacturing partnership with Cerebras to scale the CS-3 AI accelerator; launched a new JetCool liquid-cooling solution and showcased next-generation power and infrastructure technologies at Computex; highlighted NVIDIA modular platform collaboration.

Market Positioning & Secular Tailwinds

Positioned at the intersection of AI, power, and cooling infrastructure with secular end-market exposure (AI/data centers, healthcare, robotics, warehouse automation). Management noted power growth rates above 70% for parts of the portfolio driven by acquisitions and product investments.

FLEX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 28, 2026	2027 (Q2)	1.06 / -	0.79	―
Jul 29, 2026	2027 (Q1)	0.90 / 1.00	0.72	38.89% (+0.28)
May 05, 2026	2026 (Q4)	0.87 / 0.93	0.73	27.40% (+0.20)
Feb 04, 2026	2026 (Q3)	0.78 / 0.87	0.77	12.99% (+0.10)
Oct 29, 2025	2026 (Q2)	0.75 / 0.79	0.64	23.44% (+0.15)
Jul 24, 2025	2026 (Q1)	0.63 / 0.72	0.51	41.18% (+0.21)
May 07, 2025	2025 (Q4)	0.69 / 0.73	0.57	28.07% (+0.16)
Jan 29, 2025	2025 (Q3)	0.63 / 0.77	0.71	8.45% (+0.06)
Oct 30, 2024	2025 (Q2)	0.57 / 0.64	0.495	29.29% (+0.15)
Jul 24, 2024	2025 (Q1)	0.41 / 0.51	0.415	22.89% (+0.10)

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.

Beat

Missed