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Flex (FLEX) AI Stock Analysis
Flex
(NASDAQ:FLEX)
FLEX scores 69 primarily on solid underlying financial performance (healthy ROE, steady profitability, and meaningful free cash flow) and a notably strong, guidance-raising earnings call. These positives are tempered by weak technicals (below major moving averages with negative MACD) and a relatively expensive valuation (P/E 33.58 with no dividend yield provided).
Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $31.11B
- Dividend Yield
- ―
- Average Volume (3M)
- 4.05M
- Price to Earnings (P/E)
- 30.4
- Beta (1Y)
- 2.03
- Revenue Growth
- 17.55%
- EPS Growth
- 22.47%
- Country
- US
- Employees
- 149,686
- Sector
- General
- Sector Strength
- 55
- Industry
- Hardware, Equipment & Parts
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 pri...
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 production-...
Flex 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.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
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.
Flex Financial Statement Overview
Summary
Financials are solid but not pristine. Revenue is growing (TTM +5.8%) with respectable profitability (TTM operating margin ~3.7%, net margin ~3.4%) and a strong return profile (TTM ROE ~19%) on a generally sound balance sheet. Offsetting this, margins remain thin/variable and free-cash-flow quality is mixed (TTM FCF down ~4% and ~59% of net income), suggesting less consistent earnings-to-cash conversion.
Income Statement
72PositiveBalance Sheet
78PositiveCash Flow
66Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.95B | 27.91B | 25.81B | 26.41B | 28.50B | 24.63B |
| Gross Profit | 2.97B | 2.56B | 2.16B | 1.86B | 1.98B | 1.78B |
| EBITDA | 2.15B | 1.92B | 1.78B | 1.41B | 1.54B | 1.61B |
| Net Income | 1.04B | 880.00M | 838.00M | 1.01B | 793.00M | 936.00M |
Balance Sheet | ||||||
| Total Assets | 27.38B | 22.06B | 18.38B | 18.26B | 21.41B | 19.32B |
| Cash, Cash Equivalents and Short-Term Investments | 3.08B | 2.39B | 2.29B | 2.47B | 3.16B | 2.96B |
| Total Debt | 5.98B | 4.32B | 4.15B | 3.89B | 4.20B | 4.75B |
| Total Liabilities | 21.57B | 16.92B | 13.38B | 12.93B | 15.70B | 15.12B |
| Stockholders Equity | 5.81B | 5.14B | 5.00B | 5.33B | 5.35B | 4.13B |
Cash Flow | ||||||
| Free Cash Flow | 1.03B | 1.05B | 1.07B | 796.00M | 315.00M | 581.00M |
| Operating Cash Flow | 1.85B | 1.69B | 1.50B | 1.33B | 950.00M | 1.02B |
| Investing Cash Flow | -1.85B | -672.00M | -838.00M | -492.00M | -604.00M | -951.00M |
| Financing Cash Flow | 177.00M | -924.00M | -821.00M | -1.66B | 2.00M | 280.00M |
Flex Technical Analysis
Price Trends
Market Momentum
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 86.63 is below the 20-day moving average (MA) of 96.22, below the 50-day MA of 105.17, and below the 200-day MA of 103.21, indicating a bearish trend. The MACD of -7.08 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 66.42 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.
Latest Risks Added
0 New RisksFlex Peers Comparison
Overall Rating
JBL70Outperform- FLEX69Neutral
FN69Neutral
SANM69Neutral
PLXS65Neutral
BHE64Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JBL | 70Outperform | $28.08B | 26.98 | 74.11% | 0.12% | 20.64% | 63.69% |
| FLEX | 69Neutral | $31.95B | 30.40 | 19.23% | ― | 17.55% | 22.47% |
| FN | 69Neutral | $11.73B | 23.45 | 21.01% | ― | 35.73% | 43.02% |
| SANM | 69Neutral | $8.87B | 27.93 | 12.57% | ― | 58.56% | 19.37% |
| PLXS | 65Neutral | $5.54B | 27.63 | 13.34% | ― | 23.11% | 18.53% |
| BHE | 64Neutral | $2.45B | 44.03 | 5.05% | 0.99% | 12.90% | 50.52% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FLEX | Flex Ltd | 84.20 | 22.39 | 36.22% | |
| BHE | Benchmark Electronics | 68.69 | 26.16 | 61.50% | |
| FN | Fabrinet | 314.70 | -144.90 | -31.53% | |
| JBL | Jabil Inc. | 266.35 | 57.37 | 27.45% | |
| PLXS | Plexus | 209.42 | 69.93 | 50.13% | |
| SANM | Sanmina-sci | 159.18 | -4.40 | -2.69% |
Flex Corporate Events
Flex completes EPC Power acquisition and debt financing
PositiveOn October 14, 2026, Flex completed its $4.4 billion cash acquisition of EPC Power Corp., funding the deal with a $3.3 billion senior term loan, a $1.1 billion bridge credit facility entered on October 9, 2026, and cash on hand. Both facilities matur...
Flex amends Amazon warrant amid infrastructure spin-off
NeutralOn October 9, 2026, Flex Ltd. amended a warrant agreement with Amazon subsidiaries covering up to 3,859,851 Flex ordinary shares at an exercise price of $51.29, originally issued under an August 15, 2025 transaction agreement. The amendment assigns t...
Flex Raises $2 Billion for Axiom Spin-Off
PositiveFlex 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, valui...
Flex Secures New Term Loan to Support Acquisition
PositiveOn 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 avail...
Flex outlines leadership and board plans for spin-off
PositiveOn 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 D&O insurance...
Flex to Acquire EPC Power in Major Deal
PositiveOn 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 spin&#...
Flex Extends $2 Billion Share Repurchase Authorization
PositiveOn 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...
Flex Details Leadership Plan Ahead of SpinCo Launch
PositiveOn 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 board...
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.
Date of analysis: Oct 29, 2026