Flex Ltd. (FLEX) has experienced a 21.4% share price increase in the past six months, closely matching the 21.2% growth of the Zacks Electronics – Miscellaneous Products industry. In contrast, the Zacks Computer and Technology sector and the S&P 500 have seen declines of 3% and 0.8%, respectively. For fiscal 2026, Flex projects revenues between $27.2 billion and $27.5 billion, up from a previous estimate of $26.7 billion to $27.3 billion.
The company’s growth is significantly driven by its data center business, which benefits from increasing demand for AI workloads. Flex reported a 7.7% year-over-year revenue increase to $7.1 billion in Q3 of fiscal 2026. Notably, its new AI infrastructure platform can reduce deployment timelines by up to 30%. Despite strengths, Flex faces risks from macroeconomic uncertainties and softer demand in consumer markets.
Flex’s non-GAAP gross margin improved by 50 basis points to 9.8%, while non-GAAP operating margin rose 40 basis points to 6.5%. The company generated $420 million in operating cash flow and $275 million in free cash flow during the third quarter, continuing strong cash generation and share repurchases.
