Electronics maker Flex beats Q1 sales estimates on data center demand

Overview

• Flex Q1 fiscal 2026 sales beat estimates at $6.6 bln, per LSEG data

• Adjusted EPS for Q1 fiscal 2026 beats expectations at $0.72, per LSEG data

• Company attributes strong performance to strategic focus on high-growth markets

Outlook

• Flex expects Q2 revenue between $6.5 bln and $6.8 bln

• Flex projects FY26 revenue of $25.9 bln to $27.1 bln

• Flex anticipates Q2 GAAP EPS of $0.58 to $0.66

• Flex forecasts FY26 adjusted EPS of $2.86 to $3.06

Result Drivers

• STRATEGIC FOCUS - CEO attributes strong Q1 results to focus on high-growth markets like data center and power

• REGIONALIZED FOOTPRINT - Flex's regionalized footprint and integrated services contributed to Q1 performance

• TRANSFORMATIONAL ACQUISITIONS - Improved FY26 guidance reflects impact of recent acquisitions, per CEO Revathi Advaithi

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Flex Ltd is $54.00, about 0.4% above its July 23 closing price of $53.80

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPnb5p72va