Flex Ltd. (NASDAQ: FLEX) reported third‑quarter fiscal 2026 results on February 4, 2026, with net sales of $7.058 billion and a non‑GAAP diluted earnings per share of $0.87. Revenue rose 8% year‑over‑year, and the company’s adjusted operating margin expanded to 6.5%, both beating consensus estimates of $6.81 billion in revenue and $0.79 in EPS.
The growth was largely driven by the data‑center segment, which benefited from strong demand for AI‑infrastructure and power‑cooling solutions. Flex’s AI Infrastructure Platform and partnerships with NVIDIA and LG helped capture new contracts, while the company’s disciplined cost management and a deliberate shift toward higher‑margin products and services lifted the overall mix. Compared with the same quarter last year, net sales increased from $6.556 billion to $7.058 billion, and net income rose from $239 million to $1.12 billion, reflecting both volume and margin gains.
Operating margin improvement to 6.5% from 6.0% in the prior year was driven by disciplined cost controls and a higher mix of high‑value services. CFO Kevin Krumm noted that the margin expansion reflects “disciplined cost management and our deliberate shift toward higher‑value products and services.” The company also reported a record adjusted operating income of $1.15 billion, up 40 basis points year‑over‑year.
Flex raised its full‑year 2026 outlook, projecting net sales of $27.2 billion to $27.5 billion, an increase from the previous guidance of $26.7 billion to $27.3 billion. Adjusted operating margin guidance was lifted to 6.2%–6.3% from 6.1%–6.2%, and adjusted EPS was raised to $3.09–$3.17 from $2.95–$3.05. Management cited sustained demand for AI and data‑center solutions, as well as continued cost discipline, as the basis for the upward revisions.
CEO Revathi Advaithi described the quarter as “exceptional,” highlighting Flex’s leadership in data‑center solutions and its ability to enable customers to build at the scale, speed, and quality demanded by the AI era. The company also announced plans to increase future capacity investments to meet accelerating AI and data‑center demand, while noting that a missile strike in August 2025 had damaged its Ukraine facility, a macroeconomic risk that the company is managing.
Investors reacted with mixed sentiment, reflecting both enthusiasm for the earnings beat and caution over valuation and macro risks. Analysts noted the strong performance but also highlighted the need for continued focus on cost discipline and the potential impact of geopolitical events on supply chains.
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