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EarningsQ2 2027 Earnings Report
FLEX Q2 2027 EPS Results
Actual EPS$1.18
Consensus EPS$1.06
Beat/MissBeat by +$0.12
One Year Ago EPS$0.79
FLEX Q2 2027 Revenue Results
Actual Revenue$8.49B
Expected Revenue$8.17B
Beat/MissBeat by +$319.43M
YoY Revenue Growth+24.79%
Earnings Announcement Details
QuarterQ2 2027
Date10/28/2026
TimeBefore Open
Conference CallWednesday, October 28, 2026
FLEX Upcoming Earnings
Flex's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
FLEX Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
Record Quarterly Earnings and Strong Revenue Growth
Second-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 Segments
Revenue 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 Performance
Power 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 Raised
Fiscal 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 Increased
Fiscal 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 Outlook
Third-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 Growth
RMS 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 Momentum
Communications 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-Off
Axiom 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 Expanded
Flex 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 Expanded
Axiom 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 Growth
Management 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 Work
The 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 Positioning
Management 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 Strategy
Following 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 Market
Robotics 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 Increase
Of 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 Momentum
Management 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.
FLEX Earnings History
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