Flex Ltd (NASDAQ:FLEX) Reports Strong Q1 2026 Earnings Beat but Shares Dip in Pre-Market Trading

Flex Ltd (NASDAQ:FLEX), a global provider of advanced manufacturing and supply chain solutions, reported its first-quarter fiscal 2026 earnings, surpassing analyst expectations on both revenue and earnings per share (EPS). However, the stock is trading lower in pre-market activity, suggesting a mixed reaction from investors despite the beat.

Earnings and Revenue Performance

• Revenue: Flex posted Q1 2026 sales of $6.575 billion, up 4.1% year-over-year and 2.9% above the consensus estimate of $6.389 billion.
• EPS: The company reported non-GAAP earnings of $0.72 per share, 12.7% higher than the estimated $0.64.

The strong top- and bottom-line performance reflects continued execution in Flex’s key segments—Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS)—which serve industries including automotive, healthcare, and cloud infrastructure.

Market Reaction and Price Action

Despite the earnings beat, Flex shares are down ~5% in pre-market trading. This could indicate:

• Profit-taking after recent gains (the stock is up 12.3% over the past month).
• Concerns over forward guidance, though the company’s outlook for Q2 revenue ($6.65 billion midpoint) is 1.8% above analyst estimates.
• Macroeconomic uncertainties impacting sentiment in the manufacturing sector.

Key Takeaways from the Press Release

• Flex highlighted strength in its Communications, Enterprise, and Cloud segments, as well as Automotive and Health Solutions.
• The company reaffirmed its full-year outlook, with analysts expecting $26.67 billion in sales for fiscal 2026, slightly above prior estimates.

Looking Ahead

Analysts project Q2 2026 revenue of $6.658 billion and full-year sales of $26.67 billion, suggesting steady growth. However, investors will monitor whether Flex can sustain its margin performance amid supply chain and inflationary pressures.

For more detailed earnings estimates and historical performance, see Flex Ltd’s earnings and estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.