Flex Q2 2027 earnings: AI data-center boom drives record profit, lifts outlook
Flex beat profit and sales forecasts on booming AI data-center demand and raised its full-year outlook.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $1.18 | $1.07 | +10.4% |
| Revenue | $8.49B | $8.30B | +2.3% |
Key takeaways
- Flex’s adjusted profit per share beat Wall Street’s estimate and marked a company record for the quarter; the lower GAAP (standard-accounting) EPS of $0.70 reflects one-time items such as costs tied to its planned spin-off, which aren’t counted in the adjusted figure.
- Revenue grew sharply from a year earlier and topped analyst expectations, with the biggest push coming from Flex’s Cloud and Power Infrastructure business, which makes power and cooling equipment for AI data centers.
- Flex raised its guidance for the full 2027 fiscal year across the board — full-year revenue, adjusted operating margin and adjusted earnings per share were all moved higher than the targets management set earlier this year, pointing to stronger-than-expected AI infrastructure demand.
- For the next quarter (Q3 2027), Flex guided to further growth in both sales and adjusted earnings per share compared with the quarter just reported.
- CEO Revathi Advaithi linked the results to Flex’s recent purchase of EPC Power, a power-conversion equipment maker she said will add to profit this fiscal year, and to the company’s plan to spin off its Cloud and Power Infrastructure unit into a separate public company, to be named Axiom, by March 2027.
- Flex is a contract manufacturer — it builds and engineers products on behalf of other companies — a business that typically runs on thin profit margins; its trailing-year operating margin near 5% and net profit margin near 3% are typical for that model, and margins have been edging up as more revenue shifts toward higher-value AI data-center infrastructure work rather than lower-margin general assembly.
- Profit has grown slightly faster than sales over the past year (per-share earnings up about 14% versus revenue up about 12%), and a return on equity near 9.5% points to modest but steady returns on shareholders’ invested capital.
How the stock took it
Flex Ltd closed at $83.35 on Oct 27, 2026, the last session before the report, and at $93.07 on Oct 29, 2026, the first session after it — +11.7% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 9.5% | Trailing 12 months |
| Operating margin | 5.0% | Trailing 12 months |
| Net profit margin | 3.3% | Trailing 12 months |
| Pretax margin | 4.3% | Trailing 12 months |
| EPS | $2.59 | Trailing 12 months |
| Revenue growth (YoY) | 12.3% | Trailing 12 months |
| EPS growth (YoY) | 13.7% | Trailing 12 months |
| Return on equity | 9.5% | Trailing 12 months |
Sources: company report · SEC 8-K filing · earnings call