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Dec 31, 2025
Flex Q3 2026 Earnings Report
Flex reported strong third quarter fiscal 2026 results, exceeding guidance across all metrics, driven by a diversified business model and strong performance in Data Center.
Key Takeaways
Flex announced robust third quarter fiscal 2026 results, with net sales of $7.1 billion, an 8% increase year-over-year, surpassing guidance. The company achieved record GAAP operating margin of 5.5% and adjusted operating margin of 6.5%, marking its fifth consecutive quarter above 6%. Diluted GAAP EPS was $0.64, and record adjusted EPS reached $0.87.
Net sales reached $7.1 billion, an 8% increase from the prior year, exceeding company guidance.
Achieved a record GAAP operating margin of 5.5% and a record adjusted operating margin of 6.5%.
Reported GAAP EPS of $0.64 and a record adjusted EPS of $0.87.
The company raised its full-year net sales, adjusted operating margin, and adjusted EPS guidance.
Forward Guidance
For the fourth quarter of fiscal year 2026, Flex anticipates net sales between $6.75 billion and $7.05 billion, representing an 8% growth at the midpoint. Adjusted operating income is projected to be between $445 million and $475 million, and adjusted EPS is expected to be in the range of $0.83 to $0.89, indicating an 18% growth at the midpoint.
Positive Outlook
- Net Sales guidance shows an 8% growth at the midpoint, indicating continued revenue expansion.
- Adjusted Operating Income is projected to be strong, ranging from $445 million to $475 million.
- Adjusted EPS guidance of $0.83 to $0.89 reflects an 18% growth at the midpoint, signaling increased profitability.
- The company is raising its full-year net sales, adjusted operating margin, and adjusted EPS guidance.
- The guidance reflects confidence in the diversified business model and strategic positioning.
Challenges Ahead
- Interest & Other is expected to be approximately $54 million, which could impact net income.
- Adjusted income tax rate is projected at 21%, which is a significant portion of earnings.
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