Flex (NASDAQ: FLEX), the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world, announced impressive results for its first quarter ended June 27, 2025. The financial reports show an excellent start to fiscal year 2026, reflecting the strength of the company’s strategic focus on high-growth end-markets, particularly in data center and power.

Financial Highlights: Revenue Growth and Improved Profitability

In the first quarter of fiscal year 2026, Flex recorded net sales of $6.6 billion, indicating continued strong performance in its operational areas. GAAP Operating Income stood at $311 million, while Adjusted Operating Income reached $395 million. GAAP Net Income amounted to $192 million, and Adjusted Net Income was $274 million.

GAAP Earnings Per Share were $0.50, and Adjusted Earnings Per Share reached $0.72. These figures, along with an explanation and reconciliation of non-GAAP financial measures to GAAP measures, are presented in schedules attached to the press release.

CEO Commentary and Future Outlook

Revathi Advaithi, CEO of Flex, stated that “Our first quarter results are a great start to FY26 and a testament to the strength of our strategic focus on high-growth end-markets like data center and power”. She emphasized that the company has built and scaled “a regionalized footprint and integrated services in a way that continues to transform Flex into a strategic, end-to-end partner”. Advaithi added that “Our improved FY26 guidance reflects both our leadership position and the impact of transformational acquisitions that continue to shape who we are as a company”.

Flex also provided guidance for the second quarter of fiscal year 2026: Revenue is expected to range from $6.5 billion to $6.8 billion. GAAP Operating Income is projected to be between $322 million and $362 million. Adjusted Operating Income is expected to range from $375 million to $415 million. GAAP EPS is forecasted to be between $0.58 and $0.66. Adjusted EPS is expected to range from $0.70 to $0.78, which excludes $0.09 for net stock-based compensation expense and $0.03 for net intangible amortization.

The company also updated its guidance for the full fiscal year 2026: Revenue is now expected to be between $25.9 billion and $27.1 billion. GAAP EPS is projected from $2.27 to $2.47. Adjusted EPS is expected to range from $2.86 to $3.06, which excludes $0.35 for net stock-based compensation expense, $0.15 for net intangible amortization, and $0.09 for net restructuring & other charges.

Strategic Focus and Operational Advantages

Flex’s success stems from its strategic focus on high-growth end-markets. The company delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets, leveraging the collective strength of a global workforce across 30 countries and responsible, sustainable operations. Its ability to provide end-to-end services, from design to manufacturing, makes it an attractive partner for its customers.

Risks and Future Considerations

As a company operating in the electronics manufacturing and global supply chain industry, Flex is exposed to a variety of risks. These include macroeconomic impacts such as inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates. Geopolitical uncertainties and risks, including impacts from trade conflicts (especially between the U.S. and China), and the escalation of sanctions or tariffs, could lead to disruption, instability, and volatility in global markets, negatively impacting operations and financial performance. Additionally, supply chain disruptions, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand pose significant operational risks. The company is also dependent on industries that continually produce technologically advanced products with short product life cycles.

Despite these risks, management expressed confidence in its ability to continue leading and growing, while navigating market challenges. The positive guidance update reflects the company’s internal optimism regarding its future performance.

Summary: Flex – A Global Manufacturing Leader with Positive Momentum for Fiscal Year 2026

Flex delivered a strong first quarter for fiscal year 2026, demonstrating healthy growth in revenues and profitability. Its ability to leverage its strategic focus on emerging end-markets, coupled with transformational acquisitions, positions it strongly. The positive guidance update for the full year, alongside disciplined management of global supply chain challenges and geopolitical uncertainty, reflects management’s optimism regarding its ability to continue delivering innovative solutions and growing shareholder value. The information in this article is provided for professional review purposes only and does not constitute investment advice.