Core Insights - Flex Ltd. reported Q3 results showing underwhelming top-line growth but improved profitability and an increase in guidance [1] Financial Performance - The company experienced a double beat in its earnings report, indicating better-than-expected performance in both revenue and earnings [1] Future Outlook - Flex Ltd. raised its guidance for future performance, suggesting confidence in continued growth despite current challenges [1]

Core Viewpoint - Flex Ltd. reported Q3 results showing underwhelming top-line growth but improved profitability and an increase in guidance [1] Financial Performance - The company experienced a double beat in its earnings report, indicating better-than-expected performance in both revenue and earnings [1] - Despite the lack of significant revenue growth, profitability metrics showed improvement, suggesting better cost management or operational efficiency [1] Future Outlook - Flex Ltd. raised its guidance for future performance, indicating management's confidence in the company's trajectory moving forward [1]

Core Insights - Flex reported third-quarter fiscal 2026 results that exceeded guidance across all metrics, driven by strong demand in data center-related sectors and improving momentum in industrial and health markets [1] - The company raised its full-year revenue and earnings outlook, expecting to exit the fiscal year with "very good momentum" [1] Financial Performance - Flex delivered revenue of $7.1 billion for the quarter, representing an 8% year-over-year increase [1] - Adjusted operating margin was 6.5%, maintaining above 6% for another quarter, while adjusted earnings per share rose 13% to $0.87, marking a record for the company [1] - Adjusted gross profit reached $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year over year [2] - Adjusted operating profit was $460 million, with adjusted operating margin expanding 40 basis points to 6.5%, reflecting cost discipline and a shift towards higher-value products and services [2] Data Center Strategy - CEO Revathi Advaithi highlighted that data center growth is driven by expanding compute and AI workloads, advocating for a systems-level approach due to deployment complexity [3] - Flex's data center portfolio focuses on three interconnected capabilities: computer integration, cooling, and power [3] - The company plans to invest more in compute capacity over the next few years as additional AI programs are launched, with ongoing capacity additions viewed as a cycle of investment [3] Partnerships and Innovations - Flex is developing modular data center systems in collaboration with NVIDIA to enhance deployment speed and scale [5] - A partnership with LG aims to advance thermal management solutions for gigawatt-scale data centers [5] - The company is deploying a rack-level, vertically integrated liquid cooling solution at the Equinix co-innovation facility [5] - An AI infrastructure platform has been introduced, described as the first globally manufactured data center platform integrating power, cooling, compute, and services into a modular design, potentially accelerating deployment timelines by up to 30% [5]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose to $0.87, up 13% year-over-year, reflecting strong execution [4][10] - Adjusted gross profit totaled $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating income improving to $233 million and adjusted operating margin at 7.2% [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating income at $239 million and adjusted operating margin unchanged at 6.3% [11][12] Market Data and Key Metrics Changes - Strong growth in data center-related end markets was noted, driven by increasing demand for power and compute solutions [5][11] - Health Solutions saw robust demand for medical devices, while Core Industrial experienced growth in warehouse automation and robotics [7] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for leading brands, helping them navigate complexity and improve performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance in the coming quarters [10][15] - The company anticipates revenue for the fiscal year to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance between $3.21 and $3.27 [15][16] Other Important Information - Cash flow for the quarter was $275 million, with inventory levels up 5% year-over-year [12][13] - The company repurchased approximately $200 million of stock during the quarter [13] Q&A Session Summary Question: Opportunities in Data Center Growth - Management highlighted strong growth in both power and compute segments, with investments focused on both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with Embedded Power benefiting from a technology shift [32][33] Question: Agility Solutions Revenue Guidance - Management noted that growth in Agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - The Amazon warrant deal is not expected to materially impact FY 2026, with growth anticipated to scale over time [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in the power business [42][43] Question: Memory Prices Impact - Management stated that memory price increases are not significantly affecting demand in consumer markets, which are already soft [64]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose 13% year-over-year to $0.87, reflecting strong execution [4][10] - Adjusted gross profit was $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating margin at 7.2%, up 50 basis points [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating margin remaining at 6.3% [11][12] - Strong growth in data center-related markets was noted, while consumer-related markets showed softness [11][36] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and core industrial markets are also seeing robust demand, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for brands, helping them navigate complexities and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance [20][21] - The company anticipates further investments in compute capacity due to upcoming AI programs, while maintaining a balanced approach to power and compute investments [20][21] - Management highlighted the importance of speed, flexibility, and resilience in adapting to market changes [8] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance of $3.21 to $3.27 per share [15] - Cash flow for the quarter was $275 million, with a commitment to maintaining an investment-grade balance sheet [13][14] Q&A Session Summary Question: Opportunities in Data Center Growth - Management noted strong growth in both power and compute segments, with a focus on investments in both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with embedded power benefiting from technology shifts [32][33] Question: Agility Solutions Revenue Guidance - Management clarified that growth in agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026 results [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in power and core industrial businesses [42][43] Question: U.S. Manufacturing Trends - Management refuted claims of U.S. manufacturing retreat, citing ongoing investments and customer demand [55][56] Question: Automotive Market Trends - Stabilization in the automotive sector is noted, with growth driven by investments in compute platforms rather than unit volume [60][61] Question: Effects of Rising Memory Prices - Management indicated that memory price increases are not significantly affecting demand in consumer markets, as procurement is handled by customers [63][64]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose to $0.87, up 13% year-over-year, reflecting strong execution [4][10] - Adjusted Gross Profit totaled $690 million, with an adjusted gross margin of 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, driven by strong growth in Power and Core Industrial [11] - Agility Solutions revenue was $3.8 billion, up 6% year-over-year, with data center-related markets driving growth, partially offset by softness in consumer-related markets [11][12] - Adjusted operating income for Reliability Solutions improved to $233 million, with an adjusted operating margin of 7.2%, while Agility Solutions had an adjusted operating income of $239 million, with a margin of 6.3% [11][12] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by expanding compute and AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and Core Industrial markets are also showing robust momentum, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for leading brands, helping them navigate complexity and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within data centers, particularly in power and compute segments, and plans to invest accordingly [20][21] - The company anticipates continued strong cash generation and maintains a free cash flow conversion guidance of over 80% for the year [15] - Management noted that they are not seeing a retreat in US manufacturing, with ongoing investments in capacity [55][56] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with an adjusted operating margin of approximately 6.3% [15] - The fourth quarter guidance anticipates Reliability Solutions revenue to grow low double digits to mid-teens, while Agility Solutions is expected to grow low- to mid-single digits [14][15] Q&A Session Summary Question: Opportunities in Data Center Growth - Management highlighted strong growth in both power and compute segments, with investments planned in both areas to support AI-related programs [20][21] Question: Operating Margin Ceiling - Management indicated that they expect margins to continue improving across business units, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Management noted that both segments are growing strongly, with Embedded Power benefiting from a technology shift, while Critical Power focuses on lead times and installations [30][33] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026, with growth anticipated to scale over time [40][41] Question: Reliability Segment Margins - Management attributed strong reliability margins to mix impacts from growth in power and Core Industrial, with expectations for continued performance [43][44] Question: Memory Prices Effect - Management indicated that while memory prices are rising, they do not anticipate significant demand effects in consumer markets, as those markets are already soft [64]

Flex (FLEX) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +10.69%. A quarter ago, it was expected that this electronics designer and manufacturer would post earnings of $0.75 per share when it actually produced earnings of $0.79, delivering a surprise of +5.33%.Over the last four qu ...

Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ mate ...

• Reported net sales of $7.1 billion, up 8% versus the prior year, exceeding our guidance. • Raising full-year net sales, adjusted operating margin and adjusted EPS guidance. • Delivered a record GAAP operating margin of 5.5%, and a record adjusted operating margin of 6.5%, our fifth consecutive quarter with an adjusted operating margin of 6% or greater. • Reported GAAP EPS of $0.64, and a record adjusted EPS of $0.87. P R E S S R E L E A S E EXHIBIT 99.1 FLEX REPORTS THIRD QUARTER FISCAL 2026 RESULTS Austi ...

Core Insights - Flex reported strong performance in the third quarter of fiscal year 2026, exceeding guidance across all metrics, driven by a diversified business model [2][5] - The company is confident in its role as a strategic enabler for customers in a complex and dynamic environment [2] Financial Performance - Reported net sales of $7.1 billion, an 8% increase compared to the prior year, surpassing guidance [5][6] - Achieved a record GAAP operating margin of 5.5% and a record adjusted operating margin of 6.5%, marking the fifth consecutive quarter with an adjusted operating margin of 6% or greater [5][6] - GAAP EPS was $0.64, while adjusted EPS reached a record of $0.87 [5][6] Fiscal Year 2026 Guidance - Updated guidance for fiscal year 2026 includes net sales projected between $27.2 billion and $27.5 billion, an increase from the previous range of $26.7 billion to $27.3 billion [4] - Adjusted operating margin guidance raised to 6.3% from a prior range of 6.2% to 6.3% [4] - Adjusted EPS guidance increased to a range of $3.21 to $3.27, up from $3.09 to $3.17 [4] Cash Flow and Capital Expenditures - Cash provided by operating activities was $420 million, with free cash flow reported at $275 million for the quarter [6][35] - The company continues to invest in growth, with net capital expenditures impacting cash flow [34][35] Operational Highlights - Flex's diversified business model spans multiple industries, including Data Center, which is crucial for its growth strategy [2][8] - The company is focused on advanced manufacturing and supply chain solutions, particularly in the AI era, addressing challenges in power, heat, and scale [8]