Flex Ltd (NASDAQ:FLEX) Reports Mixed Q2 FY2026 Results, Raises Full-Year Outlook

Flex Ltd (NASDAQ:FLEX) reported financial results for its second quarter of fiscal year 2026, delivering a performance that narrowly missed revenue expectations while surpassing profit forecasts. The market's immediate reaction was negative, with the stock trading lower in the pre-market session.

Earnings and Revenue Versus Estimates

The company's results presented a mixed picture relative to analyst expectations. While the top-line figure came in slightly below what the market was anticipating, profitability was stronger than projected.

• Revenue: The company reported second-quarter revenue of $6.804 billion. This was just below the analyst consensus estimate of $6.818 billion.
• Earnings Per Share (EPS): Flex reported non-GAAP earnings per share of $0.79 for the quarter. This exceeded the analyst estimate of $0.77 per share.

The slight revenue miss appears to be the primary driver behind the negative pre-market price action, overshadowing the positive earnings beat. This suggests that investors were closely watching the company's sales performance, and the minor shortfall was enough to trigger a sell-off.

Market Reaction and Recent Performance

The immediate market response to the earnings report was a decline of approximately 3.6% in pre-market trading. This reaction stands in contrast to the stock's recent positive trajectory. Prior to the earnings release, Flex shares had shown strength across multiple timeframes, with gains over the past month, two weeks, and week. The pre-market drop indicates that the quarterly results, particularly the revenue figure, did not meet the heightened expectations that may have been building during that period of upward momentum.

Management Commentary and Outlook

In the earnings press release, CEO Revathi Advaithi characterized the period as a "record Q2," highlighting disciplined execution and the company's strategic shift towards higher-margin businesses. Management expressed particular confidence in its data center positioning and its role in providing integrated solutions for technology companies navigating the artificial intelligence era. This forward-looking optimism was backed by action, as the company raised its full-year guidance for net sales, adjusted operating margin, and adjusted EPS, citing strong data center momentum.

Looking Ahead: Guidance Versus Estimates

The company's decision to raise its full-year outlook provides a counterpoint to the market's initial negative reaction. While the provided analyst estimates for the full fiscal year 2026 include sales of $27.245 billion, Flex's own raised guidance will be the new benchmark that investors use to gauge future performance. For the upcoming third quarter, analysts are currently estimating revenue of $6.904 billion. The market will be watching closely to see if the company's elevated confidence, especially in its data center business, translates into results that meet or exceed these projections in the coming quarters.

For a detailed breakdown of historical earnings and future analyst estimates for Flex Ltd, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind.