Flex Q1 FY27: revenue up 21% to $7.93 billion, record adjusted EPS of $1.00
Flex beat on both lines and raised full-year guidance: revenue rose 21% to $7.93 billion and adjusted EPS of $1.00 topped the $0.93 consensus. The catch is cash quality — free cash flow fell to $41 million and buybacks stopped as acquisitions were funded with new debt. Read the quarter as a growth story with a balance-sheet bill attached.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.76 came in well above last year's $0.50, and adjusted EPS of $1.00 was a company record that beat the $0.93 consensus. The $0.24 gap between the two numbers is mostly $67 million of legal and other costs — about $53 million of which is spin-off expense — plus $51 million of stock-based compensation. Non-GAAP net income was $374 million against $274 million a year ago.
Net sales of $7.93 billion rose 20.6% from $6.58 billion a year earlier, and gross margin widened to 9.5% from 8.9%. Cost of revenue climbed to $7.18 billion, so the improvement came from price and mix rather than from a lighter cost base. GAAP operating margin was 4.9%, with adjusted operating margin at 6.7%.
Management guided Q2 to $7.95–8.25 billion of sales and $1.00–1.07 of adjusted EPS, which is 19% and 32% growth at the midpoint. Full-year FY27 guidance was raised to $33.7–35.2 billion in sales and $4.42–4.74 in adjusted EPS, from $32.3–33.8 billion and $4.21–4.51 previously. The press release notes the full-year figures do not give effect to the planned spin-off of the Cloud and Power Infrastructure segment.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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