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Flex (FLEX) AI Stock Analysis

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FLEX

Flex

(NASDAQ:FLEX)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$71.00
▲(15.77% Upside)
Flex's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in the data center segment. Technical indicators support a bullish outlook, although the valuation suggests the stock is priced for growth. Challenges in certain market segments and tariff impacts are noted but are being managed effectively.
Positive Factors
Data Center Growth
The strong growth in the data center segment indicates a robust demand for Flex's services in this high-growth area, supporting long-term revenue expansion and market leadership in a critical sector.
Operational Efficiency
Effective cash generation and operational efficiency provide Flex with the financial flexibility to invest in growth opportunities and weather economic fluctuations, ensuring sustainable long-term operations.
Strategic Capacity Expansion
Expanding manufacturing capacity in Europe strengthens Flex's competitive position in the data center market, enhancing its ability to meet growing demand and improve service delivery.
Negative Factors
Revenue Growth Fluctuations
Inconsistent revenue growth may indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and financial stability.
Reliability Solutions Revenue Decline
Declining revenue in Reliability Solutions suggests vulnerability to macroeconomic factors, which could hinder growth and profitability in key sectors over time.
Impact of Tariffs
Tariff impacts could pressure margins and profitability, posing a risk to Flex's cost structure and competitive pricing in the global market.

Flex (FLEX) vs. SPDR S&P 500 ETF (SPY)

Flex Business Overview & Revenue Model

Company DescriptionFlex (FLEX) is a global leader in supply chain solutions and manufacturing services, specializing in providing innovative and flexible manufacturing and logistics solutions across various sectors, including automotive, healthcare, consumer electronics, and industrial. The company focuses on delivering a wide array of services, including product design, engineering, manufacturing, and supply chain management, aimed at optimizing efficiency and reducing costs for its clients.
How the Company Makes MoneyFlex generates revenue primarily through its contract manufacturing services, where it partners with clients to produce electronic components and systems. Key revenue streams include the assembly of printed circuit boards (PCBs), the manufacture of complex electronic devices, and supply chain management solutions. The company also earns income from engineering services, which include design and prototyping for new products. Significant partnerships with major industry players in sectors like automotive and consumer electronics contribute to its earnings, as does its ability to leverage global manufacturing capabilities to meet diverse client needs.

Flex Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
Flex's earnings call highlighted strong growth in data center and improved margins. However, challenges in Reliability Solutions and consumer markets, along with tariff impacts, were notable concerns. Overall, Flex is executing well against its strategy, showing resilience in a dynamic macro environment.
Q1-2026 Updates
Positive Updates
Record Q1 Revenue and EPS
Flex reported a revenue of $6.6 billion for Q1 Fiscal 2026, up 4% year-over-year with an adjusted EPS of $0.72, marking a record Q1 for the company.
Strong Data Center Performance
Data Center business continues to grow with expectations of approximately $6.5 billion in revenue, growing at least 35% year-over-year, comprising 25% of total revenue.
Improved Margins
Gross margin improved to 9.1%, up 130 basis points. Operating margin increased to 6%, up 120 basis points year-over-year.
Successful Regionalization Strategy
Americas revenue rose to 49% in fiscal year '25, up from 38% in fiscal year '20, while Asia declined to 30%, down from 41% in the same period.
Strategic Capacity Expansion
Acquired a new manufacturing site in Poland to expand power capacity in Europe, doubling their output for reliable data center power.
Negative Updates
Reliability Solutions Revenue Decline
Revenue for Reliability Solutions was $2.9 billion, down 2% year-over-year due to macro-related pressures in automotive and renewables.
Continued Softness in Consumer Markets
Agility Solutions faced ongoing softness in traditional telecom and consumer-facing end markets, despite overall growth driven by cloud and AI demand.
Impact of Tariffs
Tariffs are expected to have a material impact on margin performance, though they are largely pass-through costs.
Interest and Other Expense Increase
Interest and other expenses are expected to be approximately $38 million, impacting the EPS guidance.
Company Guidance
During Flex's First Quarter Fiscal 2026 Earnings Conference Call, the company reported robust financial performance, delivering revenue of $6.6 billion, marking a 4% year-over-year increase. The adjusted operating margin stood at 6%, with an adjusted earnings per share (EPS) of $0.72, setting a record for the first quarter. The data center business was highlighted as a significant growth driver, expected to generate approximately $6.5 billion in revenue, growing at least 35% year-over-year and constituting 25% of total revenue. Flex's global footprint, spanning over 49 million square feet, including advanced manufacturing capabilities in the U.S. and Mexico, was emphasized as a competitive advantage. The company's full-year guidance was updated with anticipated revenue between $25.9 billion and $27.1 billion, an adjusted operating margin of 6% to 6.1%, and adjusted EPS ranging from $2.86 to $3.06. The guidance reflects the company's confidence in managing tariffs and the dynamic macro environment, bolstered by its strategic focus on high-growth end markets and regionalization efforts.

Flex Financial Statement Overview

Summary
Flex displays strong operational efficiency and cash flow generation, positioning it well within the hardware industry. While the income statement reflects stable profitability and prudent cost management, revenue growth fluctuations warrant attention. The balance sheet indicates strong leverage management but could benefit from improved equity ratios. Overall, Flex is financially stable with opportunities for growth.
Income Statement
75
Positive
Flex shows a strong gross profit margin of 8.67% for the TTM, indicating efficient production and cost management. The net profit margin is 3.42%, which is modest but stable. Revenue growth has been inconsistent, with a recent decline compared to previous years, suggesting potential market challenges. However, the EBIT margin of 4.78% and EBITDA margin of 6.00% reflect solid operational efficiency.
Balance Sheet
70
Positive
Flex maintains a healthy debt-to-equity ratio of 0.25, indicating prudent financial leverage. The return on equity (ROE) stands at 17.51% for the TTM, showcasing effective use of shareholder funds. The equity ratio of 26.60% suggests a balanced approach between equity and liabilities, although there is room for improvement in equity strengthening.
Cash Flow
80
Positive
Flex's cash flow statement highlights robust free cash flow growth and a strong operating cash flow to net income ratio of 1.75, demonstrating effective cash generation and operational efficiency. The free cash flow to net income ratio of 1.24 further supports their capacity to generate cash beyond earnings, positioning Flex well for future investments.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue26.07B25.81B26.41B28.50B24.63B24.12B
Gross Profit2.26B2.16B1.86B1.98B1.78B1.69B
EBITDA1.70B1.78B1.32B1.54B1.61B1.43B
Net Income891.00M838.00M1.01B793.00M936.00M613.00M
Balance Sheet
Total Assets19.13B18.38B18.26B21.41B19.32B15.84B
Cash, Cash Equivalents and Short-Term Investments2.24B2.29B2.47B3.16B2.96B2.64B
Total Debt4.26B4.15B3.75B4.20B4.75B4.34B
Total Liabilities14.04B13.38B12.93B15.70B15.12B12.40B
Stockholders Equity5.09B5.00B5.33B5.35B4.13B3.44B
Cash Flow
Free Cash Flow1.10B1.07B796.00M315.00M581.00M-207.00M
Operating Cash Flow1.56B1.50B1.33B950.00M1.02B144.00M
Investing Cash Flow-935.00M-838.00M-492.00M-604.00M-951.00M-202.00M
Financing Cash Flow-636.00M-821.00M-1.66B2.00M280.00M743.00M

Flex Technical Analysis

Technical Analysis Sentiment
Positive
Last Price61.33
Price Trends
50DMA
56.22
Positive
100DMA
52.44
Positive
200DMA
45.12
Positive
Market Momentum
MACD
1.73
Negative
RSI
62.03
Neutral
STOCH
76.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLEX, the sentiment is Positive. The current price of 61.33 is above the 20-day moving average (MA) of 59.09, above the 50-day MA of 56.22, and above the 200-day MA of 45.12, indicating a bullish trend. The MACD of 1.73 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 76.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLEX.

Flex Risk Analysis

Flex disclosed 41 risk factors in its most recent earnings report. Flex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Flex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.07B27.7711.58%5.87%20.66%
78
Outperform
$4.08B25.5812.12%2.31%48.63%
77
Outperform
$16.67B22.247.36%0.56%-0.12%-11.27%
77
Outperform
$23.39B26.9317.67%-3.63%2.26%
68
Neutral
$18.95B67.545.06%-3.72%-80.83%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
$21.80B34.4440.43%0.16%3.18%-46.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLEX
Flex
61.33
27.22
79.80%
JBL
Jabil
198.75
76.05
61.98%
PLXS
Plexus
146.10
10.53
7.77%
SANM
Sanmina-Sci
127.23
61.83
94.54%
TRMB
Trimble
79.10
18.80
31.18%
FTV
Fortive
49.08
-7.56
-13.35%

Flex Corporate Events

Regulatory Filings and Compliance
Flex Files Prospectus Supplement with SEC
Neutral
Sep 4, 2025

On September 4, 2025, Flex Ltd. filed a prospectus supplement to its automatic shelf registration statement with the Securities and Exchange Commission. This filing was made to include the legal opinion of Allen & Gledhill LLP regarding the legality of the shares covered by the prospectus.

The most recent analyst rating on (FLEX) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Flex Enters Agreement with Amazon for Equity Warrants
Neutral
Aug 18, 2025

On August 15, 2025, Flex Ltd. entered into a Transaction Agreement with Amazon.com, Inc., issuing a warrant to Amazon’s subsidiary to purchase up to 3,859,851 ordinary shares at $51.29 per share, expiring in 2030. This agreement, which includes conditions for vesting and potential extension, aims to strengthen the commercial relationship between Flex and Amazon, though it does not grant voting rights or shareholder rights to the warrantholder until exercised.

The most recent analyst rating on (FLEX) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.

Stock BuybackShareholder Meetings
Flex Approves Share Repurchase Plan at AGM
Neutral
Aug 7, 2025

On August 6, 2025, Flex Ltd. held its 2024 Annual General Meeting, where shareholders re-elected nine directors, re-appointed Deloitte & Touche LLP as auditors for the 2026 fiscal year, and approved executive compensation and share issuance authorizations. Additionally, shareholders approved a mandate allowing Flex to repurchase up to 20% of its outstanding shares, with the Board authorizing a share repurchase plan up to $1.7 billion, subject to market conditions and legal requirements.

The most recent analyst rating on (FLEX) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Flex stock, see the FLEX Stock Forecast page.

Flex Ltd Reports Strong Start to Fiscal 2026
Jul 25, 2025

Flex Ltd, a global leader in manufacturing solutions, operates across diverse industries, offering technology innovation, supply chain, and manufacturing services. In its first quarter of fiscal 2026, Flex reported net sales of $6.6 billion, with a GAAP net income of $192 million and adjusted net income of $274 million. The company achieved a GAAP operating income of $311 million and an adjusted operating income of $395 million, reflecting a strong start to the fiscal year. Key financial metrics included GAAP earnings per share of $0.50 and adjusted earnings per share of $0.72, highlighting the company’s robust performance in high-growth markets like data centers and power. Flex’s strategic focus and recent acquisitions have positioned it as a key end-to-end partner in its industry. Looking ahead, Flex’s management remains optimistic, projecting second-quarter revenues between $6.5 billion and $6.8 billion, with adjusted EPS expected to range from $0.70 to $0.78, underscoring their confidence in continued growth and market leadership.

Flex Ltd’s Earnings Call Highlights Record Growth
Jul 25, 2025

Flex Ltd’s recent earnings call highlighted a robust financial performance, showcasing record revenue and earnings per share (EPS), primarily driven by substantial growth in the data center segment. The company is making strategic investments in capacity and technology to maintain this upward trajectory. However, it faces challenges in the automotive, renewables, telecom, and consumer markets, with some financial impacts from tariffs and interest expenses.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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 23, 2025