Flex Ltd
FLEX - Insider Information
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+ FollowMarket Cap$27.7B
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Earnings Call Q2 2027
October 28, 2026 - AI Summary
Strong Q2 results; broad margin expansion across segments (good):
- Revenue: $8.5B, +25% YoY.
- Adjusted gross margin: 9.9%, +60 bps YoY (gross profit $842M).
- Adjusted operating profit: $607M, +48% YoY; adjusted operating margin: 7.1% (+110 bps YoY).
- Adjusted EPS: $1.18, +49% YoY (record earnings per share).
- Segment performance:
- RMS: $2.7B (+9% YoY), op margin 6.4% (+50 bps).
- ITS: $3.3B (+22% YoY), op margin 5.5% (+20 bps); weakness noted in consumer-related end markets.
- CPI (Cloud & Power Infrastructure): $2.5B (+54% YoY), op margin 10.7% (+240 bps) with power and cloud/cooling strength.
FY27 outlook raised/updated with strong CPI ramp; includes EPC Power acquisition (good + opportunity):
- FY27 revenue: $34.9B–$35.9B (+27% vs prior year at midpoint).
- Adjusted operating margin: 7.6%–7.8% (~+140 bps YoY at midpoint).
- Adjusted EPS: $4.84–$5.16 (up 52% at midpoint).
- CPI revenue growth guidance: +75% to +85% (power expected to grow faster than cloud).
- Management clarified ~10 percentage points of CPI growth is from acquisitions completed during the year; later commentary suggested the FY guide increase vs prior was roughly ~half underlying business improvement and ~half acquisition contribution (EPC Power).
- CapEx: $1.5B–$1.6B; FCF conversion ~40%.
- Q3 revenue guide (total Flex): $8.87B–$9.17B (+28% at midpoint). CPI expected to grow +105% to +115%.
Cash flow pressure and financing headwind from EPC Power (bad / watch-outs):
- Free cash flow (Q2): $261M, but negatively impacted by ~$61M one-time cash costs related to the announced spin-off activity.
- Debt/interest expense near-term elevated: EPC Power acquisition increased debt; management guided higher interest expense in the short term, expected to reduce after the Axiom convertible preferred equity transaction (sold $2B of preferred stock; proceeds to repay about $2B of the $4.4B debt incurred for EPC).
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$49.38
34.1% downside
Current Fair Value
34.1% downsideOvervalued by 34.1% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $27.70 Billion |
|---|---|
| Enterprise Value | $33.14 Billion |
| Earnings per Share | $2.33 |
| Beta | 1.79 |
| Outstanding Shares | 374,000,000 |
Return
| Return on Equity | 17.86% |
|---|---|
| Return on Assets | 3.79% |
| Return on Invested Capital | 13.25% |
Valuation & Multiples
| P/E Ratio | 27.07 |
|---|---|
| PEG | 84.17 |
| Price to Sales | 0.91 |
| Price to Book Ratio | 5.0 |
| Enterprise Value to Revenue | 1.07 |
| Enterprise Value to EBIT | 20.28 |
| Enterprise Value to Net Income | 31 |
| Total Debt to Enterprise | 0.26 |
| Debt to Equity | 1.47 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 4, 2026
EPS Estimate
$1.06
Consensus analyst estimateRevenue Estimate
$8.17 B
Consensus analyst estimateNext Earnings Call
Expected Date
January 27, 2027
EPS Estimate
$1.22
Consensus analyst estimateRevenue Estimate
$9.08 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.00, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.0000▼ 114.14% |
|---|---|
| Total Calls | 8,800▼ 99.63% |
| Total Puts | -▼ 100.00% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 9.70%▼ 84.27% |
|---|---|
| Total Invested | $3.98B▼ 92.98% |
| Investors Holding | 476▼ 689.00% |