Flex Gearing Up to Report Q4 Earnings: Here's What to Expect

Flex Ltd. FLEX is scheduled to report fourth-quarter fiscal 2025 results on May 7, before the market opens.

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $6.23 billion, which indicates a rise of around 1% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 69 cents per share, up 21.1% year over year.

For the fourth quarter of fiscal 2025, Flex expects revenues to be between $6 billion and $6.4 billion. Management expects adjusted earnings of 65-73 cents per share, excluding 5 cents for net restructuring charges, 8 cents for stock-based compensation expense and 4 cents for net intangible amortization.

The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.7%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors to Note for FLEX’s Q4 Results

For the Reliability Solutions business, management forecasts sales to remain flat to down mid-single digits in the fourth quarter owing to softness in the automotive vertical amid persistent macroeconomic challenges. Weaker core industrial demand is likely to have acted as an additional headwind. While demand for medical devices is expected to have remained stable, the timing of recovery in medical equipment sales remains uncertain.

Agility Solutions’ revenues are also anticipated to be flat to up in mid-single digits, supported by steady growth in cloud markets, which is likely to have offset muted spending in communications and enterprise segments. The Lifestyle business is expected to have faced a seasonally soft quarter. Consumer Devices is anticipated to have experienced typical post-holiday seasonality, with a continued focus on strong cost management.

Flex Ltd. Price and EPS Surprise

Flex Ltd. price-eps-surprise | Flex Ltd. Quote

However, Flex’s performance is likely to have been cushioned by steady momentum in data center, medical devices and consumer-related markets. The data center business stands to benefit from artificial intelligence (AI)-powered cloud transformation.

FLEX remains focused on advancing cloud, power and automotive businesses through strategic programs, and the initiatives are likely to have positively impacted Flex’s performance in the fiscal fourth quarter. These factors favorably position Flex for the AI-powered technology shift prevalent in the industry, from the grid to chip and from the cloud to the edge.

Margin improvement is likely to have been driven by strong execution, a favorable product mix and low-cost manufacturing.

Recent Key Highlights

On April 29, 2025, Flex's JetCool launched the SmartSense Coolant Distribution Unit (CDU), an in-rack, liquid-to-liquid system that cools up to 300kW per rack or multiple high-density racks, offering modular, cost-effective solutions for data centers and colocation providers.

On April 28, 2025, Flex expanded production of data center power products like Databar, Power Distribution Units (PDUs) and Remote Power Panels (RPPs) at its 134,000 sq. ft. Columbia, SC, facility to meet rising AI-driven demand and cut lead times. This complements its new 400,000 sq. ft. Dallas facility, boosting U.S. capacity for critical power products.

On March 20, 2025, Flex announced the launch of a New Product Introduction (NPI) center near Boston, dedicated to serving healthcare customers. This state-of-the-art facility is designed to support the entire product development journey from prototype to preclinical builds, design verification and production transfer, enabling faster, more scalable and lower-risk market entry for medical products.

What Our Model Says About Flex

Our proven model does not predict an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Flex has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Axon Enterprise AXON is set to report first-quarter 2025 earnings on May 7, after market close. It has an Earnings ESP of +9.28% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AXON’s earnings is pegged at $1.27 per share, indicating year-over-year growth of 10.4%. The consensus estimate for its sales is pegged at $589.1 million, indicating year-over-year growth of 27.9%.

Expeditors International of Washington EXPD has an Earnings ESP of +3.76% and a Zacks Rank #3 at present. EXPD is scheduled to report first-quarter 2025 earnings on May 6. 

The Zacks Consensus Estimate for first-quarter 2025 revenues and earnings are pegged at $2.43 billion and $1.30 per share, respectively. EXPD’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 11.6%.

CurtissWright CW is set to report its first-quarter results on May 7, after market close. It has an Earnings ESP of +0.12% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for CW’s earnings is pegged at $2.39 per share, indicating year-over-year growth of 20.1%. The consensus estimate for its sales is pegged at $767.2 million, indicating year-over-year growth of 7.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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