Flex Ltd (NASDAQ:FLEX) reported fiscal 2026 first-quarter earnings that beat analyst predictions, but the company’s stock dropped 5% following the announcement despite solid results.
The contract manufacturer posted adjusted earnings per share of $0.72, outperforming the consensus estimate of $0.63 by $0.09. Revenue reached $6.6 billion, exceeding the forecast of $6.26 billion. The release did not include a year-over-year revenue comparison.
Looking ahead to the second quarter of fiscal 2026, Flex anticipates revenue between $6.5 billion and $6.8 billion, slightly above the analyst consensus of $6.54 billion. Adjusted EPS is expected to range from $0.70 to $0.78, with the midpoint of $0.74 edging out the forecasted $0.73.
“Our first quarter results are a great start to FY26 and a testament to the strength of our strategic focus on high-growth end-markets like data center and power,” said Revathi Advaithi, CEO of Flex. “We’ve built and scaled a regionalized footprint and integrated services in a way that continues to transform Flex into a strategic, end-to-end partner.”
Flex also updated its full-year fiscal 2026 guidance, projecting revenue between $25.9 billion and $27.1 billion, with a midpoint of $26.5 billion, slightly above the consensus estimate of $26.19 billion. Adjusted EPS for the year is expected between $2.86 and $3.06, with the midpoint of $2.96 in line with analyst expectations.
On a GAAP basis, the company reported operating income of $311 million and net income of $192 million for the quarter, translating into GAAP earnings per share of $0.50.
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