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Sep 26, 2025
Flex Q2 2026 Earnings Report
Flex reported strong Q2 FY26 results with record adjusted EPS, increased operating margin, and raised full-year guidance due to high data center demand.
Key Takeaways
Flex delivered a record-breaking second quarter, with net sales at $6.8 billion and adjusted EPS at $0.79. Operating margins improved, and the company raised its full-year outlook on the back of strong demand in its Power and Cloud segments.
Achieved record adjusted EPS of $0.79 despite Ukraine facility impairment costs
Net sales reached $6.8 billion, driven by strong performance in Power and Cloud
GAAP operating margin was 4.4%; adjusted operating margin hit 6.0%
Raised FY26 guidance for net sales, adjusted EPS, and operating margin
Forward Guidance
Flex raised its full-year FY26 guidance citing strong momentum in Power and Cloud, maintaining confidence in its higher-margin business shift.
Positive Outlook
- Q3 FY26 net sales projected at $6.65B to $6.95B
- Adjusted EPS forecast for Q3 is $0.74 to $0.80
- FY26 net sales guidance raised to $26.7B–$27.3B
- Adjusted operating margin outlook increased to 6.2%–6.3%
- Strong demand seen in data center and cloud infrastructure
Challenges Ahead
- Continued geopolitical risk due to Ukraine facility damage
- Interest and other expenses estimated at ~$54M in Q3
- Adjusted income tax rate expected to remain at 21%
- Ongoing restructuring and impairment charges
- Immaterial near-term inefficiencies from shifting Ukraine operations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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