Flex (FLEXN) AI Stock Analysis

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.