Electronics maker Flex beats Q2 estimates, hikes FY forecast as portfolio shift pays off

Flex

29/10/2025 12:13

Overview

Flex fiscal Q2 net sales rise 4% to $6.8 bln, beating analyst expectations

Adjusted EPS for fiscal Q2 at $0.79, surpassing analyst estimates

Company raises full-year guidance due to strong demand in Power and Cloud businesses

Outlook

Flex raises full-year net sales guidance to $26.7 bln to $27.3 bln

Company expects Q3 net sales between $6.65 bln and $6.95 bln

Flex projects full-year adjusted EPS between $3.09 and $3.17

Result Drivers

DATA CENTER DEMAND - Strong demand in Power and Cloud businesses driven by data center needs, contributing to sales growth

PORTFOLIO SHIFT - Company is shifting towards higher-margin businesses, enhancing data center market position

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$6.80 bln
$6.67 bln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.79
$0.75 (8 Analysts)
Q2 EPS
$0.52
Q2 Net Income
$199 mln
Q2 Gross Profit
$614 mln
Q2 Operating Income
$296 mln
Q2 Pretax Profit
$262 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electronic equipment & parts peer group is "buy"

Wall Street's median 12-month price target for Flex Ltd is $62.50, about 2.8% below its October 28 closing price of $64.26

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn5HXWGXa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)