Flex reported stronger-than-expected results for the third quarter of calendar 2026 and raised its full-year outlook, citing growth across its business segments and contributions from recent acquisitions and product launches.
Revenue reached $8.49 billion, compared with $8.15 billion expected by S&P analysts. The result represented 24.8% year-over-year growth and exceeded the estimate by 4.2%. Adjusted earnings per share came to $1.18, ahead of the analysts' estimate of $1.06 by 11.5%.
| Measure | Q3 2026 result | Analyst estimate |
|---|---|---|
| Revenue | $8.49 billion | $8.15 billion |
| Adjusted EPS | $1.18 | $1.06 |
| Operating margin | 4.9% | — |
Operating margin was 4.9%, unchanged from the same quarter last year. Management attributed the quarter's performance to accelerated growth across all segments, with particular strength in the Cloud and Power Infrastructure division. That business benefited from acquisitions and new product launches, according to the company.
“Our results reflect continued execution across the portfolio and demonstrate the strength of our strategy, our diversified end markets, and our ability to help customers navigate an increasingly dynamic environment,” CEO Revathi Advaithi said.
Full-year guidance moves higher
Flex raised its full-year revenue guidance to $35.4 billion at the midpoint, up from a previous midpoint of $34.45 billion. The change amounts to a 2.8% increase from the earlier outlook. Management also lifted its full-year adjusted EPS guidance to $5 at the midpoint, a 9.2% increase.
During the earnings call, CFO Kevin Krumm said about half of the increase in the revenue outlook reflected improvement in the underlying business. The remainder was attributed to the EPC Power acquisition, according to the discussion summarized by Yahoo Finance.
Questions focus on growth and margins
Analysts questioned how much of the revised outlook came from organic operations versus acquired revenue, as well as whether Flex can sustain its margin gains in power-related markets. Krumm provided the split between underlying business improvement and the EPC Power acquisition, while Advaithi pointed to the company's technology position and market share in embedded and critical power.
- Third-quarter revenue increased 24.8% year over year to $8.49 billion.
- Adjusted EPS of $1.18 exceeded the S&P analyst estimate of $1.06.
- Full-year revenue and adjusted EPS guidance both increased, to $35.4 billion and $5 at the midpoint, respectively.
Flex had a market capitalization of $34.39 billion according to the earnings-call report. The updated outlook incorporates both operating improvement and the contribution from EPC Power, keeping the acquisition's role distinct from the company's underlying business performance.
