10-QPeriod: Q1 FY2026

FLEX LTD. Quarterly Report for Q1 Ended Jun 27, 2025

Filed July 25, 2025For Securities:FLEX

Summary

Flex Ltd. reported a solid performance for the first quarter of fiscal year 2026, demonstrating revenue growth and improved profitability. Net sales increased by 4% year-over-year to $6.6 billion, driven by a 10% surge in the Flex Agility Solutions (FAS) segment, largely due to strong demand in the Communications, Enterprise, and Cloud (CEC) sector. While the Flex Reliability Solutions (FRS) segment saw a modest 2% decline, overall gross margins expanded significantly by 120 basis points, reflecting improved operational execution and favorable product mix. The company also successfully managed its operating expenses, leading to a notable increase in net income to $192 million, up from $139 million in the prior year period. The company's liquidity remains robust, with $2.2 billion in cash and cash equivalents, and it has recently enhanced its credit facility. Shareholder returns were supported by $247 million in share repurchases during the quarter. Key financial improvements include a strong increase in operating income for both segments, with FAS growing to $240 million and FRS to $172 million. The company also completed a small acquisition in Poland for $35 million, expanding its capabilities within the FRS segment. Despite ongoing global economic uncertainties and geopolitical risks, Flex Ltd. has demonstrated resilience and a commitment to operational efficiency and profitability, positioning it favorably for continued performance.

Financial Highlights

50 data points
Beta

Revenue

$6.58B

8.7% Gross Margin

Net Income

$192.00M

2.9% Net Margin

EPS (Diluted)

$0.50

Total Assets

$19.13B

Cash & Equivalents

$2.24B

Free Cash Flow

$266.00M

Financial Statements
Beta
Revenue$6.58B
Cost of Revenue$5.99B
Gross Profit$572.00M
SG&A Expenses$233.00M
Operating Income$311.00M
Interest Expense$45.00M
Net Income$192.00M
EPS (Basic)$0.51
EPS (Diluted)$0.50
Shares Outstanding (Basic)374.00M
Shares Outstanding (Diluted)381.00M

Key Highlights

  • 1Net sales increased by 4% to $6.6 billion for the three-month period ended June 27, 2025.
  • 2Gross profit margin improved to 8.7% from 7.5% in the prior year, driven by favorable mix and operational execution.
  • 3Net income rose to $192 million, compared to $139 million in the same period last year.
  • 4The Flex Agility Solutions (FAS) segment saw a significant 10% increase in net sales, boosted by demand in the CEC business.
  • 5Flex Reliability Solutions (FRS) segment experienced a 2% decrease in net sales but showed margin improvement.
  • 6The company repurchased $247 million of its ordinary shares during the quarter.
  • 7Total assets increased to $19.1 billion as of June 27, 2025, from $18.4 billion as of March 31, 2025.

Frequently Asked Questions

Flex Ltd.'s revenue growth of 4% to $6.6 billion was primarily driven by a strong 10% increase in its Flex Agility Solutions (FAS) segment. This growth was largely attributed to heightened demand within the Communications, Enterprise, and Cloud (CEC) business, particularly in data center cloud solutions. While the Flex Reliability Solutions (FRS) segment saw a slight decrease, overall performance was boosted by this segment's strength.

Profitability has significantly improved. Gross profit margin increased by 120 basis points to 8.7%, reflecting better operational execution and a more favorable product mix. This, combined with disciplined selling, general, and administrative expenses, led to a substantial increase in net income to $192 million, up from $139 million in the prior year's comparable period.

Flex Ltd. maintains a strong financial position with $2.2 billion in cash and cash equivalents as of June 27, 2025. The company recently enhanced its liquidity by entering into a new $2.75 billion credit facility. Cash flow from operations was robust at $399 million for the quarter. The company anticipates its current financial condition and liquidity sources will be sufficient to meet its obligations for the foreseeable future.

Yes, Flex Ltd. completed the acquisition of a manufacturing business in Bielsko Biała, Poland, for $35 million. This acquisition is part of the Flex Reliability Solutions (FRS) segment and is expected to enhance its capabilities. Additionally, the company noted the completion of a $500 million Delayed Draw Term Loan in June 2025.