FLEX US S&P 500Russell 1000 Earnings call
Flex Ltd. (FLEX) · Q2 2026 results and valuation
Share price: $78.97 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 29 Jul 2026 and 6 May 2026
Net income up 14.0% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+14.0%
Net income vs Q1 2026
Outlook given
Net income 285.0M vs 250.0M
Revenue +6.0%
Against the same quarter last year (Q2 2025) it is +48.4%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
The cloud and power infrastructure segment grew 35% year-over-year, indicating that investments in this area are on track.
Valuation
Is Flex Ltd. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-03-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.7% growth a year (3-year revenue growth), the model's fair value is $24.33 a share — the stock trades 225% above it. Today's price assumes 13.2% growth a year.
Current price
$78.97
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.2% for 10 yrs
Fair value / share
$24.33
Buy below
$18.25
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Adjusted tax rate expected to be approximately 21%.
Source quote
“We expect an adjusted tax rate of approximately 21%.”
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Guidance
FLEX updated its guidance to expect adjusted EPS to be between $4.42 and $4.74 a share.
Source quote
“We expect adjusted EPS to be between $4.42 and $4.74 a share.”
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Fading
The company announced its intent to spin off the Cloud and Power Infrastructure business into a new publicly traded company to allow the business to stand on its own.
Source quote
“We announced our intent to spin off our Cloud and Power Infrastructure business into a new publicly traded company with the spin... Yesterday brought the next milestone in that journey. This decision reflects our conviction that the business has achieved the scale, growth profile and strategic importance to stand on its own.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I do not see any major concerns about, how that capacity installation is going.”
“It will continue to really spread across not just high-speed switches, but optical switches, network interface cards.”
“Power has good margins, but today lower than some of its peers.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-26)
| Metric | Q2 2026period end 2026-06-26 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.93B | 7.48B | +6.0% | 6.58B | +20.6% |
| Gross profit | 747.0M | 702.0M | +6.4% | 572.0M | +30.6% |
| Operating income | 392.0M | 372.0M | +5.4% | 311.0M | +26.0% |
| Net income | 285.0M | 250.0M | +14.0% | 192.0M | +48.4% |
| EPS | 0.76 | 0.67 | +13.4% | 0.50 | +52.0% |
| P/E today 45.1 | 56.6 | 28.1 | +28.5 | 22.0 | +34.6 |
Topics
Most discussed now
- On the other side, Flex has its robotics and warehouse automation business.
- Flex also launched a new liquid cooling solution through its JetCool and showcased its next-generation power and infrastructure…
- Flex also saw strong growth in its communications and industrial business units driven by high-value markets such as networking…
- Adjusted operating profit was $534 million up 35% year-over-year with adjusted operating margins at 6.7% up 70 basis points from...
- Adjusted gross profit totaled $761 million and adjusted gross margin improved to 9.6%.
Faded since Q1 2026
- Dropped This does reflect Flex's deliberate repositioning away from those lower value end markets.
- Fading To its earnings presentation, Flex also published a separate presentation regarding the proposed transaction will which will be...
- Fading Since then, Flex has exited consumer-focused markets, spun off Nextracker into a leading solar business and created tremendous value for...
- Fading Before I discuss Flex's financial results, I'd like to take a moment to explain its new segmentation outlined on Slide...
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation; Unregistered share sale; Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change; Other events · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K