Copyright Benzinga
Flex Ltd. (NASDAQ:FLEX) reported stronger-than-expected fiscal second-quarter results on Wednesday, surpassing Wall Street estimates and signaling continued momentum across its high-margin business units. The company posted adjusted earnings of 79 cents per share, up 23% from 64 cents a year earlier and above analysts' expectations of 75 cents. Quarterly net sales reached $6.80 billion, exceeding the consensus estimate of $6.68 billion and rising 4% year over year from $6.55 billion. Adjusted operating income came in at $409 million, with an operating margin of 6.0%. The company closed the quarter with $2.25 billion in cash and cash equivalents. Outlook Flex provided upbeat guidance for the third quarter, projecting adjusted earnings between 74 cents and 80 cents per share, in line with the Street's midpoint forecast of 77 cents. Revenue is expected to range from $6.65 billion to $6.95 billion, compared with analysts' consensus of $6.77 billion. The company anticipates adjusted operating income of $405 million to $435 million for the quarter. For fiscal 2026, Flex raised its full-year guidance, reflecting confidence in its strategic repositioning toward higher-margin operations. The company now expects adjusted earnings between $3.09 and $3.17 per share, up from the prior range of $2.86 to $3.06 and above the analyst consensus of $3.04. Flex also lifted its net sales forecast to between $26.7 billion and $27.3 billion, compared with its earlier outlook of $25.9 billion to $27.1 billion and slightly ahead of Wall Street's $26.71 billion estimate. The company now expects an adjusted operating margin of 6.2% to 6.3% for the full year. CEO Commentary "We achieved a record Q2, and we continue to execute with discipline and deliver value for customers across business segments," said Revathi Advaithi, CEO of Flex. "As we continue to shift our portfolio toward higher margin businesses, we remain confident in our data center position and ability to offer complete, integrated solutions to the world's leading technology companies as they navigate the AI era." Price Action: FLEX shares were trading higher by 0.30% to $64.45 at last check Wednesday. Read Next: Boeing’s 777X Setback Deepens Losses Even As Jet Deliveries Surge Photo by Sundry Photography via Shutterstock
