Flex Beats First-Quarter Expectations and Raises Full-Year Outlook Despite Share Decline

Flex Ltd. (NASDAQ:FLEX) reported first-quarter results that surpassed Wall Street expectations and lifted its full-year financial outlook, although the manufacturing services company’s shares fell more than 5% in premarket trading following the announcement.

The company posted adjusted earnings of $1.00 per share, comfortably ahead of analysts’ consensus estimate of $0.90.

Revenue climbed 21% year over year to $7.9 billion, exceeding the market forecast of $7.52 billion.

Company Raises Fiscal 2027 Guidance

Following the strong quarterly performance, Flex increased its full-year fiscal 2027 outlook.

The company now expects adjusted earnings per share of between $4.42 and $4.74, with the midpoint of $4.58 above the Wall Street consensus estimate of $4.53.

Flex also raised its full-year revenue forecast to a range of $33.7 billion to $35.2 billion, compared with previous guidance of $32.3 billion to $33.8 billion. The midpoint of the revised outlook, $34.45 billion, is also above analysts’ expectations of $33.41 billion.

Chief Executive Officer Revathi Advaithi said: “This quarter reflects the continued execution of the strategy we’ve advanced over the last several years. From joining the S&P 500 to expanding our role in AI infrastructure, we’ve strengthened our position in attractive growth markets.”

Second-Quarter Forecast Points to Continued Growth

For the second quarter, Flex expects revenue of between $7.95 billion and $8.25 billion, representing approximately 19% growth at the midpoint of the guidance range.

Adjusted earnings are projected to be between $1.00 and $1.07 per share, with the midpoint of $1.04 implying year-over-year growth of approximately 32%.

Margins Remain Strong

During the first quarter, Flex reported a GAAP operating margin of 4.9%, while adjusted operating margin reached 6.7%.

GAAP earnings per share were $0.76, and adjusted operating income totalled $534 million.

The company generated $276 million in operating cash flow during the quarter and reported free cash flow of $41 million.

Investor Day Scheduled for November

Flex also announced that it will host an Investor Day on November 10, 2026, where management is expected to provide additional updates on the company’s long-term strategy and growth opportunities.

Flex stock price