Flex (FLEX) investor relations material

Executive summary

• Q3 FY2026 revenue reached $7.1 billion, up 8% year-over-year, with results above guidance and record adjusted EPS of $0.87, up 13% year-over-year.

• Adjusted operating margin expanded to 6.5%, marking five consecutive quarters above 6% and a record for the company.

• GAAP net income for the quarter was $239 million; adjusted net income was $326 million.

• Strong performance was driven by data center, industrial, and health solutions, while consumer markets remained soft and automotive stabilized.

• A $46 million charge was recognized due to a missile strike at the Ukraine facility, impacting restructuring and impairment charges.

Financial highlights

• Adjusted gross profit was $690 million with a 9.8% margin; GAAP gross margin improved to 9.6% for the quarter.

• Adjusted operating profit was $460 million; GAAP operating income was $389 million.

• Free cash flow for the quarter was $275 million; nine-month free cash flow was $848 million.

• Cash and cash equivalents as of December 31, 2025, were $3.1 billion, up from $2.3 billion at March 31, 2025.

• Repurchased $200 million of stock (3.3 million shares) in the quarter; $744 million spent on share repurchases in nine months.

Outlook and guidance

• FY2026 revenue guidance raised to $27.2–$27.5 billion, with adjusted operating margin at 6.3% and adjusted EPS at $3.21–$3.27.

• Q4 FY2026 net sales expected between $6.75–$7.05 billion; adjusted EPS guidance is $0.83–$0.89.

• Free cash flow conversion expected to remain above 80% for the year.

• Q4 guidance: Reliability Solutions revenue up low double digits to mid-teens; Agility Solutions up low- to mid-single digits.

• Management expects current liquidity and capital resources to be sufficient for future commitments.