FLEX LTD. (FLEX)

Price—Loading quote

AI: Overvalued

Price checkThe shares look expensive even after strong growth, because today’s price assumes years of progress.

At the August 17 premarket quote of $128.11, Flex was worth about $47.3 billion using 369.4 million June shares. That equals roughly 28 times management’s fiscal 2027 adjusted profit guidance midpoint of $4.58 per share; adjusted profit excludes selected costs. It is about 49 times trailing reported profit of $2.59 per share. Fiscal 2026 free cash flow—cash left after operations and equipment spending—was about $1.06 billion, only 2.2% of market value. Inference: these demanding prices make the shares overvalued unless rapid growth persists for years.

Big pictureEarnings and yearly cash improved, but recent cash generation weakened as investment needs rose.

Revenue rose from $24.1 billion in fiscal 2021 to $27.9 billion in 2026, but the path was cyclical: it peaked at $28.5 billion in 2023, then fell for two years before rebounding. Operating income climbed from $795 million to $1.37 billion, while operating cash flow reached $1.69 billion. Yet first-quarter fiscal 2027 free cash flow fell to $41 million from $268 million a year earlier, as operating cash declined and equipment spending rose to $236 million. The annual record is solid; the latest quarter shows cash durability is not assured.

Business strengthProfitability improved and the share count fell, while acquisition debt reduced the financial cushion.

Gross profit reached 9.2% of sales in fiscal 2026, versus 7.1% in 2024, and operating profit reached 4.9% versus 3.2%. Flex spent about $4.5 billion repurchasing its own shares from fiscal 2022 through 2026, cutting year-end shares 26%, from 492.6 million in 2021 to 365.7 million. However, June debt jumped to $5.22 billion after the $1.1 billion EP² purchase, leaving $2.38 billion after subtracting cash. Near-term assets exceeded near-term obligations by $5.02 billion, but first-quarter repurchases stopped and shares rose to 369.4 million alongside $51 million of employee stock awards.

What could change the storyThe planned split and data-center boom offer upside, but today’s price leaves little room for setbacks.

Strongest bull case: Cloud and Power Infrastructure sales grew 38% in fiscal 2026, and management now guides fiscal 2027 revenue to $33.7-$35.2 billion and adjusted profit per share to $4.42-$4.74. A tax-free split targeted for early 2027 could let investors value that faster-growing unit separately. Strongest bear case: its fiscal 2026 segment profit was 9.2% of sales, down from 10.2%, acquisition debt rose, and separation spending is depressing cash. The price becomes more defensible if guidance is met and cash rebounds; repeated weak cash or a delayed split would deepen overvaluation.

$128.11 price considered

AI: News

Guidance raised after record quarterSales and profit beat expectations, yet the stock fell as investors demanded even faster growth.

On July 29, 2026, Flex reported quarterly sales of $7.93 billion, up 21%, and adjusted profit, which excludes selected costs, of $1.00 per share versus the $0.93 analyst estimate. It raised fiscal 2027 sales guidance to $33.7-$35.2 billion and adjusted profit guidance to $4.42-$4.74 per share. Shares fell about 5% before the market opened despite the beat. That timing shows disappointment with already-high expectations, but it does not prove the results alone caused the move.

Cloud unit split plannedFlex plans to separate its fast-growing infrastructure unit, which could reveal value but prove costly.

On May 5, 2026, the board approved separating Cloud and Power Infrastructure into a listed company, targeting the first quarter of calendar 2027 and intending a tax-free distribution. The faster-growing unit houses data-center power, cooling, and integrated systems; the remaining Flex keeps advanced manufacturing. Reuters displayed an 8.69% gain alongside the announcement, but Flex released annual results and guidance the same day, so attribution cannot be isolated. Debt allocation, separation costs, and final approval remain unknowns.

Major index membership addedJoining a major index created forced buying demand, though that support does not improve the business.

On June 5, 2026, S&P Dow Jones Indices said Flex would enter the S&P 500 before trading on June 22, replacing Campbell’s. Flex shares rose 4.7% before the market opened on June 8 after the confirmation. Index-tracking funds generally must buy new members, so the event created identifiable short-term demand. That mechanism can lift the quote without changing sales, profit, or cash, making it relevant when judging how much of the recent rise reflects business improvement.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$27.91B	$25.81B	$26.41B	$28.50B	$24.63B	$24.12B	$24.21B	$26.21B	$25.44B	$23.86B	$24.42B	$26.15B	$26.11B	$23.57B	$29.34B	$28.68B	$24.11B	$30.95B	$27.56B
Gross profit	$2.57B	$2.16B	$1.86B	$1.98B	$1.78B	$1.69B	$1.34B	$1.52B	$1.60B	$1.52B	$1.61B	$1.55B	$1.44B	$1.17B	$1.52B	$1.58B	$1.21B	$1.28B	$1.18B
Research & development	—	—	—	—	—	—	—	—	$78.2M	$65.6M	$61.0M	$26.3M	$30.0M	—	$78.9M	$46.5M	$13.3M	—	—
Operating income	$1.37B	$1.17B	$853.0M	$1.02B	$890.0M	$795.0M	$415.0M	—	—	—	—	—	—	—	—	—	—	—	—
EBITDAderived	$1.89B	$1.68B	$1.35B	$1.51B	$1.36B	$1.28B	$901.5M	—	—	—	—	—	—	—	—	—	—	—	—
Net income	$880.0M	$838.0M	$1.01B	$793.0M	$936.0M	$613.0M	$88.0M	$93.0M	$428.5M	$319.6M	$444.1M	$600.8M	$365.6M	$277.1M	$488.8M	$596.2M	$18.6M	−$6.14B	−$681.4M
Basic EPSper diluted share	$2.37	$2.14	$2.31	$1.75	$1.97	$1.23	$0.17	$0.18	$0.81	$0.59	$0.80	$1.04	$0.60	$0.42	$0.68	$0.77	$0.02	-$7.47	-$0.95
Diluted EPSper diluted share	$2.33	$2.11	$2.28	$1.72	$1.94	$1.21	$0.17	$0.18	$0.80	$0.59	$0.79	$1.02	$0.59	$0.41	$0.67	$0.75	$0.02	-$7.47	-$0.95

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)208$179.19M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 18, 2026Form 4	Tan Kwang HooiChief Operating Officer	SellOrdinary Shares	100	$146.41	$14.6K	248.5K
Jun 18, 2026Form 4	Tan Kwang HooiChief Operating Officer	SellOrdinary Shares	5.9K	$145.33	$862.4K	248.6K
Jun 18, 2026Form 4	Tan Kwang HooiChief Operating Officer	SellOrdinary Shares	2.9K	$144.85	$426.9K	254.6K
Jun 18, 2026Form 4	WENDLER DANIELChief Accounting Officer	SellOrdinary Shares	17	$146.31	$2.5K	37.9K
Jun 18, 2026Form 4	WENDLER DANIELChief Accounting Officer	SellOrdinary Shares	488	$145.53	$71.0K	37.9K

Review ownership filings at SEC.gov ↗

FLEX LTD. (FLEX)

Financial charts

Financial statements

Insider buys & sells