Flex Ltd.

Flex Ltd. (NASDAQ: FLEX) is the manufacturing partner that helps brands design, build, deliver and manage products. The Company delivers advanced manufacturing, data center IT and power infrastructure solutions. Its segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment consists of various end markets, such as Communications, Enterprise and Cloud, including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, consumer packaging, floorcare, micromobility and audio; and Consumer Devices, including mobile and high velocity consumer devices.

Recent Business and Financial Updates

• Flex First Quarter Fiscal 2026 Earnings Call Announcement: Flex (NASDAQ: FLEX) will release its first quarter fiscal 2026 financial results before market open on July 24, 2025, followed by a conference call at 7:30 AM CT, with a live webcast and replay available on its Investor Relations website.
• Flex Fourth Quarter Fiscal 2025 Performance: Flex reported robust results for the fourth quarter of fiscal year 2025, ending March 31, 2025, with net sales reaching USD6.4 billion. The company achieved a GAAP operating income of USD305 million and an adjusted operating income of USD396 million. Net income attributable to Flex Ltd. was USD222 million on a GAAP basis and USD285 million on an adjusted basis, translating to GAAP earnings per share (EPS) of USD0.57 and adjusted EPS of USD0.73. These figures reflect a strong financial performance, underpinned by effective operational execution and strategic focus.
• Full-Year Fiscal 2025 Achievements: For the full fiscal year 2025, Flex recorded net sales of USD25.8 billion, with GAAP operating income at USD1,169 million and adjusted operating income at USD1,459 million. The company’s GAAP net income attributable to Flex Ltd. stood at USD838 million, while the adjusted net income reached USD1,055 million. This resulted in a GAAP EPS of USD2.11 and an adjusted EPS of USD2.65. Flex’s CEO, Revathi Advaithi, highlighted the company’s record adjusted operating margins and its fifth consecutive year of double-digit adjusted EPS growth, signaling sustained profitability and operational strength.
• Strategic Outlook and Market Demand: Flex’s performance in fiscal 2025 was driven by strong demand, particularly from its data center customers, as the company continues to pivot toward more profitable business segments. CEO Revathi Advaithi emphasized the company’s ability to deliver consistent growth, with a focus on optimizing its portfolio for higher profitability. The results reflect Flex’s strategic shift to align with market trends, ensuring resilience and competitiveness in a dynamic industry landscape. The company’s ability to achieve record margins underscores its operational efficiency and market positioning.
• Fiscal 2026 Financial Guidance: Looking ahead to fiscal year 2026, Flex projects first-quarter revenue between USD6.0 billion and USD6.5 billion, with GAAP operating income expected to range from USD278 million to USD318 million and adjusted operating income from USD330 million to USD370 million. The company anticipates GAAP EPS of USD0.46 to USD0.54 and adjusted EPS of USD0.58 to USD0.66, excluding specific expenses. For the full fiscal year 2026, Flex forecasts revenue between USD25.0 billion and USD26.8 billion, with GAAP EPS of USD2.35 to USD2.55 and adjusted EPS of USD2.81 to USD3.01, reflecting confidence in sustained growth and profitability.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 77.18, inside overbought zone, with expectations of a consolidation or a downward momentum if the important support of USD 50.00-USD 51.00 is broken on the downside. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.

Flex (NASDAQ: FLEX) reported net sales of USD6.4 billion for the fourth quarter and USD25.8 billion for the fiscal year 2025, ending March 31, 2025, with GAAP operating income of USD305 million and USD1,169 million, respectively, and adjusted operating income of USD396 million and USD1,459 million. The company recorded GAAP net income of USD222 million (USD0.57 per share) for Q4 and USD838 million (USD2.11 per share) for the year, with adjusted net income at USD285 million (USD0.73 per share) and USD1,055 million (USD2.65 per share). Flex achieved record adjusted operating margins and its fifth consecutive year of double-digit adjusted EPS growth, driven by strong demand from data center customers and a focus on higher-margin business. For fiscal 2026, Flex projects first-quarter revenue of USD6.0 billion to USD6.5 billion and full-year revenue of USD25.0 billion to USD26.8 billion, with adjusted EPS guidance of USD0.58 to USD0.66 for Q1 and USD2.81 to USD3.01 for the year. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to Flex Ltd. (NASDAQ: FLEX) at the current market price of USD 53.26, as of July 18, 2025, at 07:50 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 18, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.