Summary
Flex Ltd. (FLEX) reported fiscal year 2026 results demonstrating continued revenue growth, driven by a significant 38% increase in its Cloud and Power Infrastructure (CPI) segment, signaling strong demand in data center and AI-related markets. Overall net sales grew 8% year-over-year. The company has strategically reorganized into three reportable segments: Integrated Technology Solutions (ITS), Regulated Manufacturing Solutions (RMS), and Cloud and Power Infrastructure (CPI). A pivotal announcement was the company's intention to separate its CPI segment into a new, independent publicly traded company, targeting completion in the first quarter of calendar 2027. This strategic move aims to unlock value by allowing each business to focus on its distinct market dynamics and growth opportunities. Despite broad-based revenue growth and improved gross margins, driven by operational efficiencies and a favorable product mix in higher-margin businesses, Flex faces ongoing market complexities. These include geopolitical uncertainty, supply chain disruptions (though component shortages have largely subsided), and the need for continuous investment in technological advancements, particularly within the rapidly evolving CPI segment. The company is actively managing its portfolio and operations to navigate these challenges, with a strong emphasis on its global scale, diverse customer relationships, and commitment to sustainability.
Financial Highlights
52 data points| Revenue | $27.91B |
| Cost of Revenue | $25.29B |
| Gross Profit | $2.57B |
| SG&A Expenses | $1.05B |
| Operating Income | $1.37B |
| Interest Expense | $197.00M |
| Net Income | $880.00M |
| EPS (Basic) | $2.37 |
| EPS (Diluted) | $2.33 |
| Shares Outstanding (Basic) | 371.00M |
| Shares Outstanding (Diluted) | 378.00M |
Key Highlights
- 1Announced intention to separate the Cloud and Power Infrastructure (CPI) segment into an independent public company, expected in Q1 2027.
- 2Achieved 8% year-over-year net sales growth, reaching $27.9 billion in fiscal year 2026.
- 3CPI segment experienced robust 38% growth, driven by demand in Cloud & Cooling and Power businesses, indicating strong performance in data center and AI infrastructure.
- 4Maintained a diverse customer base with the ten largest customers accounting for 45% of net sales, and no single customer exceeding 10% of revenue.
- 5Reported improved gross profit margin to 9.2% from 8.4% in the prior year, attributed to a favorable product mix and operational efficiencies.
- 6Recognized $51 million in asset impairments, inventory write-downs, and other charges due to a missile strike on its Ukraine facility in August 2025, which disrupted operations but was managed through contingency plans.
- 7Shareholder value creation continues, with the company repurchasing $944 million of its ordinary shares during fiscal year 2026 and retaining $1.1 billion available under its current repurchase authorization.