Flex Posts Record Q1 Adjusted EPS of $1.00 and Lifts Full-Year Outlook
FLEX has more than doubled off its 52-week low of $47.83.
Summary
Flex reported Q1 FY2027 revenue of $7.9 billion and record adjusted EPS of $1.00, raised its full-year guidance, and scheduled an Investor Day for November 10 ahead of its planned spin-off.
Key Events · Earnings and Guidance · FLEX
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Q1 Revenue Surges 21%
Net sales hit $7.9 billion, fueled by AI infrastructure and broad-based demand. GAAP operating margin came in at 4.9%, with adjusted operating margin at 6.7%.
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Record Adjusted EPS of $1.00
Adjusted net income climbed to $374 million, yielding adjusted EPS of $1.00 compared with $0.72 a year ago. The improvement reflects operating leverage and a $46 million gain on a subsidiary divestiture.
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Full-Year Guidance Raised
Flex now projects FY2027 revenue of $33.7–$35.2 billion—a midpoint increase of 23% year over year—and adjusted EPS of $4.42–$4.74, up from the prior range of $4.21–$4.51, signaling confidence in sustained growth.
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Spin-Off Costs and Cash Flow
Free cash flow totaled $41 million, weighed down by $24 million in separation costs tied to the planned Cloud and Power Infrastructure spin-off. Cash and equivalents stood at $2.84 billion.
Analysis · FLEX · Manufacturing
A standout fiscal first quarter saw revenue climb 21% to $7.9 billion and adjusted EPS reach $1.00, well above the prior-year $0.72. Bolstered by that momentum, the company raised its full-year revenue and earnings forecast, now guiding for adjusted EPS of $4.42–$4.74, up from $4.21–$4.51. The upgrade arrives as Flex prepares to spin off its Cloud and Power Infrastructure segment—a move that will fundamentally reshape the organization. The results underscore robust underlying strength in both the legacy and spin-off businesses, with AI infrastructure demand serving as a key catalyst. An Investor Day on November 10 will offer deeper insight into the separation and the standalone strategies of each entity.
At the time of this filing, FLEX was trading at $108.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $41.5B. The 52-week trading range was $47.83 to $166.86. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.