FLEX (FLEX) Company Report

Flex's data center business, a primary growth driver, achieved $4.8 billion with a 50% growth rate in the previous fiscal year and is projected to grow 35% or more to approximately $6.8 billion in the current fiscal year.
The company's fastest-growing business, the data center segment, is also its highest margin business, operating at margins above the corporate average. Both the Agility and Reliability segments are operating at or above 6% operating margin, which was achieved a year earlier than committed, with expectations for continued margin expansion.
Flex is strategically focusing on integrated data center solutions, such as 1 MW racks and modular deployments, which are expected to reduce construction lead times by 30%.
The company has intentionally reduced its high-volume, low-margin consumer devices business by $2 billion over the past few years, replacing it with higher-margin, longer product lifecycle businesses to enhance overall margins.

12 hours ago

Transcript

Flex Highlights Strong Data Center Growth and Margin Expansion at UBS Conference

FLEX

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Flex's data center business is a primary growth driver, projected to reach approximately $6.8 billion this year with 35% or more growth, building on 50% growth to $4.8 billion last year. This expansion is driven by strong demand from hyperscalers, colos, and silicon providers, particularly in AI and digital infrastructure.
The company is experiencing unparalleled investment in the data center market, with a focus on integrated, modular solutions, which has resulted in a 30% reduction in lead times for power pods.
Flex's data center business is its highest margin and fastest-growing segment, operating above the corporate average. Both Agility and Reliability segments have achieved operating margins at or above 6%, a year ahead of schedule.
Strategic portfolio optimization includes a $2 billion reduction in low-margin consumer devices, replaced by higher-margin, longer product lifecycle businesses. Cost increases from regionalization are largely pass-through to customers, preserving margins.
Flex is actively investing in capacity expansion across North America, Europe, and Southeast Asia to meet customer demand and support continued growth.

14 hours ago

Transcript

Flex Highlights Strong Data Center Growth and Strategic Investments

FLEX

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Flex projects its data center business to reach approximately $6.5 billion in revenue for fiscal 2025, accounting for 25% of total revenue, with an anticipated growth of 35-plus% for the year.
The power business, a significant part of its data center offerings, is expected to generate $1.3 billion in revenue in fiscal 2025.
To meet high demand, Flex is undertaking significant capacity expansions across its compute, cooling, and power segments, with investments in facilities in Dallas, Mexico, and various US locations.
Strategic initiatives include the development of 400-volt DC rack products (with production ramping late next calendar year) and modular solutions (PowerPods, IT pods, cooling pods), which are expected to increase revenue per megawatt and accelerate customer deployment.
The company forecasts continued margin progression, with an implied Q4 operating margin guide of 6.8%, attributed to a favorable mix from high-growth areas like data centers and internal productivity enhancements.

14 hours ago

Transcript

Flex Details Data Center Growth and Strategic Investments

FLEX

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Flex's data center business is a significant growth area, projected to reach $6.5 billion in fiscal year 2025, accounting for 25% of total revenue, and is expected to grow by 35% or more in fiscal year 2026.
The company is actively investing in capacity expansion across compute, cooling, and power, as it is currently unable to meet demand.
Flex is advancing its power and cooling solutions, including 400-volt DC products expected to ramp production late next year, and is expanding its PowerPod modular solutions to integrate IT and cooling for faster data center deployment.
Strategic moves like the acquisition of Crown Technical in 2024 and a new partnership with LG for thermal management solutions are bolstering Flex's comprehensive offerings for the data center and utility markets.
Flex anticipates continued margin progression, driven by a favorable mix uplift from high-growth sectors and internal productivity, with an implied Q4 operating margin guide of 6.8%.

15 hours ago

Transcript

FLEX LTD. Completes Debt Offering

FLEX

Debt Issuance

FLEX LTD. completed the sale of $150,000,000 aggregate principal amount of its 5.250% Notes due 2032 and $600,000,000 aggregate principal amount of its 5.375% Notes due 2035 on November 13, 2025.
The 5.250% Notes due 2032 will mature on January 15, 2032, with interest payable semi-annually beginning January 15, 2026.
The 5.375% Notes due 2035 will mature on November 13, 2035, with interest payable semi-annually beginning May 13, 2026.
The net proceeds from this offering are intended to repay or redeem the company's $675.0 million aggregate principal amount of 3.750% Notes due February 2026.

Nov 13, 2025, 9:11 PM

8-K

Flex expands liquid cooling presence at Equinix Co-Innovation Facility

FLEX

New Projects/Investments

Product Launch

Flex has deployed its advanced rack-level, vertically integrated liquid cooling solution at the Equinix Co-Innovation Facility (CIF) in Ashburn, Virginia, showcasing capabilities from its subsidiary JetCool.
This solution, incorporated into a single Open Compute Project (OCP) ORv3 rack, is designed to significantly reduce data center water and power consumption in AI and high-performance computing (HPC) environments.
Key benefits include JetCool's SmartPlate Systems demonstrating a 15 percent reduction in total IT power consumption, and DLC solutions reducing water usage by up to 90 percent and cooling power consumption by as much as 50 percent.
The deployment also features a SmartSense 6U Liquid-to-Liquid (L2L) CDU capable of cooling up to 300kW in high-density DLC environments.

Nov 12, 2025, 2:05 PM

Press Release

Flex and LG Partner for Advanced Data Center Cooling Solutions

FLEX

New Projects/Investments

Product Launch

Flex and LG Electronics have announced a partnership to jointly develop integrated, modular cooling solutions for AI-era data centers.
This collaboration aims to address escalating thermal management challenges in high-density compute environments by combining Flex's liquid cooling and IT infrastructure with LG's air and liquid cooling modules.
The co-developed solutions will be integrated into the Flex AI infrastructure platform, offering prefabricated, scalable data center infrastructure.
The partnership is expected to increase efficiency, simplify deployment, and speed time to revenue for customers.

Nov 4, 2025, 12:00 AM

Press Release

Flex Reports Strong Q2 FY26 Results and Raises Full-Year Guidance

FLEX

Earnings

Guidance Update

Revenue Acceleration/Inflection

Flex reported Q2 FY26 revenue of $6.8 billion, adjusted operating income of $409 million (6.0% margin), and adjusted earnings per share of $0.79. This marks the fourth consecutive quarter with adjusted operating margins of 6.0% or higher.
The company increased its FY26 guidance, now projecting revenue between $26.7 billion and $27.3 billion, adjusted operating margin of 6.2% to 6.3%, and adjusted earnings per share of $3.09 to $3.17.
Growth was driven by sustained momentum in its data center portfolio, with total data center revenue projected to reach $6.5 billion for FY26E, a 35% year-over-year increase.
Flex generated $305 million in free cash flow during Q2 FY26.

Oct 29, 2025, 12:30 PM

Presentation

Flex Reports Strong Q2 Fiscal 2026 Results and Raises Full-Year Guidance

FLEX

Earnings

Guidance Update

New Projects/Investments

Flex reported Q2 fiscal 2026 revenue of $6.8 billion, a 4% year-over-year increase, and adjusted EPS of $0.79, up 23% year-over-year.
The company raised its full-year fiscal 2026 revenue guidance to between $26.7 billion and $27.3 billion and adjusted EPS to between $3.09 and $3.17 per share, driven by strong performance and favorable mix.
Growth was primarily fueled by the data center business, which is projected to grow at least 35% this year, with Flex actively participating in AI infrastructure buildouts and partnering with companies like Nvidia.
Flex repurchased $297 million of stock (approximately 5.6 million shares) in Q2 and maintained its 80%+ free cash flow conversion target for FY2026.
The company anticipates a revenue headwind of slightly over $100 million in the second half of FY2026 due to the temporary loss of operations at its Ukraine facility.

Oct 29, 2025, 12:30 PM

Transcript

Flex Reports Strong Q2 2026 Results and Raises Full-Year Guidance

FLEX

Earnings

Guidance Update

New Projects/Investments

Flex reported strong Q2 FY2026 financial results, with revenue of $6.8 billion, a 4% year-over-year increase, and adjusted EPS of $0.79, up 23%.
The company raised its full-year FY2026 guidance, now expecting revenue between $26.7 billion and $27.3 billion and adjusted EPS between $3.09 and $3.17.
The Data Center business remains a significant growth driver, with revenue projected to grow at least 35% this year, supported by partnerships like the one with Nvidia for next-gen AI factories.
Flex anticipates continued margin improvement in the second half of FY2026, driven by a favorable mix shift towards higher-margin products and services.
Despite a revenue headwind of over $100 million in the second half of the year from the Ukraine facility shutdown, the company's overall guidance was still increased.

Oct 29, 2025, 12:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for FLEX.

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