Flex Ltd

Flex Ltd

FLEX

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Market Cap$55.24B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Flex LtdFlex Ltd64.1-17%2.20.5

Earnings Call Q4 2026

May 6, 2026 - AI Summary

Major corporate update: proposed spin-off (SpinCo) of Cloud & Power Infrastructure - Flex announced intent to spin off its CPI segment (Cloud & Power Infrastructure; historically the data center business) into a new publicly traded company (“SpinCo”). - Spin expected to close in Q1 calendar 2027 (i.e., fiscal 2027 period); forward-looking statements note this spin is not reflected in guidance assumptions. - Rationale: AI data centers require integrated “grid-to-chip” power + thermal + compute rather than multi-vendor subsystems; also a generational power infrastructure shift (e.g., solid-state transformers, 800V DC distribution). - SpinCo positioning: “only company with embedded power, distributed power, thermal and systems depth” to deliver end-to-end capability.
Financial performance (FY26 and Q4) — strong profitability and cash generation - Q4 FY26: revenue $7.5B (+17% YoY); adjusted gross margin 9.9% (record, +50 bps); adjusted operating margin 6.7% (record, +50 bps); adjusted EPS $0.93 (+27% YoY). - Full FY26: revenue $27.9B (+8% YoY); adjusted gross margin 9.5% (+70 bps); adjusted operating income $1.8B (+21%); adjusted operating margin 6.3% (+70 bps); adjusted EPS $3.30 (+25%). - Cash: full-year free cash flow ~$1.1B; CapEx $625M (~2.2% of revenue). - Shareholder return: buybacks—$200M in Q4 and $944M in FY26 (about 19M shares).
FY27 and Q1FY27 guidance — strong growth but with investment “lumpiness” - FY27 outlook (Flex consolidated): revenue $32.3B–$33.8B (≈+18% at midpoint); adjusted operating margin 7.0%–7.1% (≈+80 bps); adjusted EPS $4.21–$4.51 (≈+32% at midpoint). - CapEx: $1.4B–$1.6B (elevated due to CPI build-out). Free cash flow conversion ~60% *excluding spin transaction costs*. - Q1 FY27 (segment): RMS high single-digit to low double-digit growth; ITS high single-digit to low double-digit growth (with lifestyle still weak); CPI +20% to +30%, with CPI growth ramping in 2H due to FY26 investment benefiting delivery. - Challenge/negative element: CPI profitability is pressured by infrastructure investment in critical power and ramp costs in cloud (margin headwind in FY26/temporary).

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$145.17

Target Price by Analysts

10.4% downsideFlex Target Price DetailsTarget Price
$63.66

Current Fair Value

60.7% downside

Overvalued by 60.7% based on the discounted cash flow analysis.

Share Statistics

Market cap$55.24 Billion
Enterprise Value$55.57 Billion
Dividend Yield$- (-)
Earnings per Share$2.33
Beta1.45
Outstanding Shares374,000,000

Return

Return on Equity17.11%ROE
Return on Assets3.99%
Return on Invested Capital14.22%

Valuation & Multiples

P/E Ratio64.08P/E Ratio
PEG508.07PEG
Price to Sales2.19Price to Sales
Price to Book Ratio12.46Price to Book Ratio
Enterprise Value to Revenue1.99
Enterprise Value to EBIT38.92
Enterprise Value to Net Income63
Total Debt to Enterprise0.05
Debt to Equity0.53Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 13, 2026
EPS Estimate
$0.87
Average shareholder expectation
Revenue Estimate
$6.95 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 23, 2026
EPS Estimate
$0.93
Average shareholder expectation
Revenue Estimate
$7.52 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio2.4374▲ 159.51%
Total Calls1,006,100▼ 37.76%
Total Puts2,452,227▲ 80.11%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %93.48%▼ 3.51%
Total Invested$22.99B▲ 4.47%
Investors Holding808▲ 20.00%

ESG Score

No data

About Flex Ltd

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical analysis for all tax legislation. Its reports directly influence the corporate tax structures and capital investment incentives that profoundly affect Flex Ltd's profitability and investment decisions.

Finance

This powerful committee controls taxation and trade policy. Changes in corporate tax rates, capital investment credits, and tariffs (critical for a global manufacturer like Flex Ltd) directly impact profitability and operational strategy.

Appropriations

This committee controls discretionary federal spending. Its subcommittees determine the precise funding for defense programs and scientific research, directly impacting government contracts and demand for advanced electronics that Flex Ltd could supply.

Armed Services

Flex Ltd's bare printed circuit boards are critical components in defense systems. This committee's authorization of the NDAA and R&D funding for military technologies directly impacts a significant potential market for Flex Ltd.