Flex Ltd ( (FLEX) ) has released its Q2 earnings. Here is a breakdown of the information Flex Ltd presented to its investors.
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Flex Ltd, a global leader in advanced manufacturing and supply chain solutions, reported its second-quarter fiscal 2026 earnings, showcasing its prowess in delivering integrated solutions across various technology sectors. The company is recognized for its innovative approach in addressing power and cooling challenges in data centers, particularly in the AI era.
Flex Ltd reported a 4% increase in net sales, reaching $6.8 billion, which was at the top end of its guidance. The company also raised its full-year guidance for net sales, adjusted operating margin, and adjusted EPS, driven by strong demand in its Power and Cloud businesses. This quarter marked the fourth consecutive quarter with an adjusted operating margin of 6% or higher, and the company achieved a record adjusted EPS of $0.79.
Key financial highlights include a GAAP operating margin of 4.4% and an adjusted operating margin of 6.0%. The company reported a GAAP EPS of $0.52, which includes costs related to missile strike damage at its Ukraine facility. Flex’s adjusted net income stood at $300 million, with free cash flow reaching $305 million. The company continues to focus on higher-margin businesses and remains confident in its data center solutions.
Looking ahead, Flex Ltd has provided guidance for the third quarter of fiscal 2026, with expected net sales between $6.65 billion and $6.95 billion and adjusted EPS ranging from $0.74 to $0.80. The company also updated its full-year guidance, projecting net sales between $26.7 billion and $27.3 billion, with an adjusted operating margin between 6.2% and 6.3%.
Flex Ltd’s management remains optimistic about the company’s strategic direction and its ability to deliver value across its business segments. The focus on shifting towards higher-margin businesses and leveraging its expertise in data center solutions positions Flex well for continued growth in the evolving technology landscape.