Flex (FLEX): 1QFY27 First Take

First-page research excerpt

Equity Research

29 July 2026 | 8:14AM EDT

Flex (FLEX): 1QFY27 First Take

Synopsis

We view this as a solid report, as Flex reported 1QFY27 results above the Street,

2QFY27 guidance is moderately above consensus, and the company raised its

full year outlook (with a higher revenue outlook for RemainCo). We’d attribute

the pre-market move lower in shares primarily to the broader market

environment and a high bar for stocks exposed to the datacenter market, but

the fact that the CPI (Cloud & Power Infrastructure Segment) revenue outlook

for FY27 was ‘only maintained’ and is 2H weighted could be a factor. 1Q FCF was

also more muted, and FY27 FCF guidance was lowered with the presentation

stating FCF guidance now includes deal separation costs. Overall, our initial view

is that the company continues to execute well and is set for solid growth. We

think key topics on the call will include demand trends by end market, margins,

capital allocation, and supply chain (and any component shortages).

Mark Delaney, CFA

+1(212)357-0535 |

Goldman Sachs & Co. LLC

Will Bryant

Goldman Sachs & Co. LLC

Aman Gupta

+1(212)357-1549 |

Goldman Sachs & Co. LLC

Ayush Ghose

+1(212)902-7257 |

Goldman Sachs & Co. LLC

Results

Flex (FLEX; Buy) reported 1QFY27 (2QCY26) revenue of $7,928 mn (up 21% yoy),

which was above the guidance range of $7,350 mn to $7,650 mn, and compared to

GS at $7,539 mn and the Street (FactSet) at $7,528 mn.

1QFY27 adjusted EBIT (excluding SBC) of $534 mn (~6.7% of revenue) compared to

GS at $492 mn (6.5% of revenue), the Street at $493 mn (6.5% of revenue), and the

guidance range of $469 mn to $499 mn.

Non-GAAP EPS of $1.00 was above the guidance range of $0.86 to $0.92 and

compared to GS at $0.90 and the Street at $0.90.

Adjusted FCF was $41 mn in the quarter, which the company noted was negatively

impacted by $24 mn in one-time separation costs incurred related to the proposed

Cloud & Power Infrastructure segment spin-off.

Guidance and Outlook

Flex introduced 2QFY27 (3QCY26) guidance for revenue of $7,950 mn to $8,250 mn

(or $8,100 mn at the midpoint), compared to GS at $8,155 mn and the Street at

$7,844 mn at the midpoint.

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