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- **Revenue & Margin Strength**: Q2 $6.8B (+4% YoY), 6% operating margin; full-year guide raised to $26.7-27.3B, 6.2-6.3% margin.
- **Data Center Dominance**: 35%+ data center growth driven by AI infrastructure, 800V DC AI factories with NVIDIA.
- **Resilience & Expansion**: Ukraine shutdown (1% revenue) offset by health solutions and cloud strength; CapEx 2% of revenue for growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue of $6.8 billion, up 4% YoY, driven by data center and health solutions. Operating margin of 6% maintained for the fourth consecutive quarter.
- **Data Center Expansion**: Data center revenue expected to grow at least 35% YoY, outpacing industry trends. New AI infrastructure platform with NVIDIA enables faster deployments (up to 30% faster) and energy efficiency improvements.
- **Segment Performance**: Health solutions and medical device demand steady; automotive market stabilizing with new compute wins across EV, hybrid, and ICE platforms.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q2 gross profit $632M (9.3% margin), operating profit $409M (6% margin), EPS $0.79 (+23% YoY). Full-year guidance raised to $26.7-27.3B revenue, 6.2-6.3% operating margin, and $3.09-3.17 EPS.
- **Cash Flow & Capital Allocation**: Free cash flow $305M, net inventory down 4% YoY. CapEx 2% of revenue, with $297M share buybacks. Guidance for Q3: $6.65-6.95B revenue, $0.74-0.80 EPS.
- **Tariff Management**: Tariffs treated as pass-through; global scale supports customer regionalization strategies.

**【Q&A Key Highlights】**
- **Margin Drivers**: Q2+ margin expansion (55bps to 6%) driven by products/services growth (above 6% margin). Q4 acceleration expected from cloud/power ramp.
- **Ukraine Impact**: Mukachevo shutdown (1% revenue) reduced 2026 guidance by ~$100M, but overall guide raised due to data center and health solutions strength.
- **AI & Automation**: NVIDIA partnership for modular data center solutions; internal AI/robotics investments to enhance factory efficiency and reduce lead times.

Flex Ltd. (FLEX) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FLEX

FLEX fundamentals

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