Is FLEX's Q3 2025 EPS growth sustainable?

Flex's Q3 2025 EPS growth appears to be sustainable based on the following points:

1. Growth in Specific Segments: Flex has seen significant growth in its data center and AI-related revenues, with a reported year-over-year increase of 40% in the second quarter of fiscal year 2025. This growth is a result of strategic positioning and the capitalization of emerging opportunities, particularly in the AI space.
2. Financial Projections: Analysts project Flex's earnings per share (EPS) for the fiscal year 2025 (FY25) to reach $2.48, with expectations of growth to $2.88 for FY26. This indicates a positive trajectory in the company's profitability, which suggests that the EPS growth is expected to continue.
3. Market Positioning: Flex's strong position in the AI and data center segments, coupled with its ability to navigate market challenges in other areas, bodes well for the sustainability of its EPS growth. The company's focus on AI growth and the recent opening of a new product introduction center for healthcare are likely to contribute to its continued growth.
4. Financial Health: Flex maintains a "GOOD" overall financial health score, demonstrating strong market momentum and profitability metrics. The company's robust financial position, with a substantial market capitalization and impressive returns over the past year, supports the sustainability of its EPS growth.

In conclusion, Flex's Q3 2025 EPS growth is likely sustainable due to the company's strategic growth drivers, positive financial projections, strong market positioning, and robust financial health.