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Flex Partners MIT to Drive a Sustainable Manufacturing Future With INM
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Key Takeaways
FLEX joins MIT's INM as a founding member to drive sustainable, tech-led manufacturing transformation.
The partnership includes factory observatory programs and a living lab at FLEX's Brazil site for MIT students.
FLEX eyes growth in cloud, power, and automotive, despite macro and tariff pressures across key segments.
Flex Ltd. (FLEX - Free Report) recently joined forces with the Massachusetts Institute of Technology (“MIT”) on the Initiative for New Manufacturing (INM) — a cutting-edge Institute-wide project that aspires to rebuild U.S. manufacturing from the core, with sustainability, human experience and advanced technology. As a founding member of the INM Industry Consortium, Flex will work together with MIT researchers, faculty and peer organizations to drive a shared vision of improving manufacturing by harnessing artificial intelligence (AI), machine learning (ML) and new system-level technologies.
The initiative’s four pillars provide the roadmap for technological transformation, human-centered work, scalable ventures and building robust, decentralized supply chains. Also, with sustainability as top priority, INM supports technology that reduces emissions, lowers energy use and facilitates access to economic opportunity.
A key component of the Flex-MIT partnership is the factory observatory program. Through this, MIT students will gain real-world exposure by visiting Flex facilities to observe live manufacturing systems, from automation to lean processes.
Moreover, Flex’s site in Sorocaba, Brazil, will become a living lab for MIT’s Master's of Engineering students. There, they’ll collaborate with the Flex Institute of Technology (“FIT”), a nonprofit focused on building sustainable and smart electronics solutions. These experiences are poised to elevate the educational journeys with innovation and societal impact.
Flex is committed to advancing cloud, power and automotive businesses by launching strategic programs, which are reflected in the top-line performance for the fiscal fourth quarter of 2025. The initiatives are likely to positively impact Flex’s performance in the fiscal first quarter of 2026. In fiscal 2025, Flex’s cloud and data center power business expanded 50% from the prior year. The company continues to anticipate strong growth in the cloud and data center power business for fiscal 2026. Its innovative suite of power products and services enhances customer satisfaction. All these factors are favorably positioning Flex for the AI-powered technology shift, prevalent in the industry, from grid to chip and from the cloud to the edge.
Flex is on an acquisition spree to augment its manufacturing footprint as well as unlock new end-market opportunities. Acquisitions like Bose facilities, Mirror Controls International (MCi), Alcatel-Lucent facility and Nextracker expanded footprint in audio systems, automotive, telecom and smart solar tracking solution markets. Apart from these, the company has made several smaller acquisitions over time, which has expanded capabilities in the medical devices, consumer electronics, household industrial and lifestyle market.
In third-quarter fiscal 2025, Flex completed its previously announced acquisitions of JetCool Technologies and Crown Systems, both of which bring essential technologies to its data center portfolio. JetCool enhances its direct-to-chip liquid cooling capabilities, while Crown Systems strengthens its critical power solutions for data centers and expands its opportunities in grid modernization.
However, the volatile macro environment and evolving trade policy affect its performance. The company expects tariff-related costs from sourcing raw materials in China and other impacted regions, with plans to pass these costs onto customers. Still, tariffs could negatively influence cash flow timing and apply slight pressure on margins. Although Flex is implementing proactive pricing strategies to counter these effects, tariffs continue to present a significant burden on overall performance.
For fiscal 2026, Flex anticipates ongoing tariff-related headwinds across its business segments. In the Reliability Solutions segment, changing tariff developments in the Automotive unit bring uncertainty to demand projections. Within the Agility Solutions segment, indirect tariff exposure in the Lifestyle unit may adversely impact consumer sentiment, while the Consumer Devices unit is expected to see softer demand due to persistent tariff uncertainty.
FLEX’s Zacks Rank & Stock Price Performance
FLEX currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 31.5% in the past year against the Zacks Electronics - Miscellaneous Products industry's decline of 11.1%.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. In the last reported quarter, it delivered an earnings surprise of 4.88%.
Arista delivered a trailing four-quarter average earnings surprise of 11.82% and has a long-term growth expectation of 14.81%. Arista currently serves five verticals, namely cloud titans (customers that deploy more than 1 million servers, cloud specialty providers, service providers, financial services and the rest of the enterprise. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains well-suited to adapt to the changing market dynamics to overcome challenges while maximizing growth.
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Flex Partners MIT to Drive a Sustainable Manufacturing Future With INM
Key Takeaways
Flex Ltd. (FLEX - Free Report) recently joined forces with the Massachusetts Institute of Technology (“MIT”) on the Initiative for New Manufacturing (INM) — a cutting-edge Institute-wide project that aspires to rebuild U.S. manufacturing from the core, with sustainability, human experience and advanced technology. As a founding member of the INM Industry Consortium, Flex will work together with MIT researchers, faculty and peer organizations to drive a shared vision of improving manufacturing by harnessing artificial intelligence (AI), machine learning (ML) and new system-level technologies.
The initiative’s four pillars provide the roadmap for technological transformation, human-centered work, scalable ventures and building robust, decentralized supply chains. Also, with sustainability as top priority, INM supports technology that reduces emissions, lowers energy use and facilitates access to economic opportunity.
A key component of the Flex-MIT partnership is the factory observatory program. Through this, MIT students will gain real-world exposure by visiting Flex facilities to observe live manufacturing systems, from automation to lean processes.
Flex Ltd. Price and Consensus
Flex Ltd. price-consensus-chart | Flex Ltd. Quote
Moreover, Flex’s site in Sorocaba, Brazil, will become a living lab for MIT’s Master's of Engineering students. There, they’ll collaborate with the Flex Institute of Technology (“FIT”), a nonprofit focused on building sustainable and smart electronics solutions. These experiences are poised to elevate the educational journeys with innovation and societal impact.
Flex is committed to advancing cloud, power and automotive businesses by launching strategic programs, which are reflected in the top-line performance for the fiscal fourth quarter of 2025. The initiatives are likely to positively impact Flex’s performance in the fiscal first quarter of 2026. In fiscal 2025, Flex’s cloud and data center power business expanded 50% from the prior year. The company continues to anticipate strong growth in the cloud and data center power business for fiscal 2026. Its innovative suite of power products and services enhances customer satisfaction. All these factors are favorably positioning Flex for the AI-powered technology shift, prevalent in the industry, from grid to chip and from the cloud to the edge.
Buyout Synergies Boost FLEX Amid Ongoing Tariff Tensions
Flex is on an acquisition spree to augment its manufacturing footprint as well as unlock new end-market opportunities. Acquisitions like Bose facilities, Mirror Controls International (MCi), Alcatel-Lucent facility and Nextracker expanded footprint in audio systems, automotive, telecom and smart solar tracking solution markets. Apart from these, the company has made several smaller acquisitions over time, which has expanded capabilities in the medical devices, consumer electronics, household industrial and lifestyle market.
In third-quarter fiscal 2025, Flex completed its previously announced acquisitions of JetCool Technologies and Crown Systems, both of which bring essential technologies to its data center portfolio. JetCool enhances its direct-to-chip liquid cooling capabilities, while Crown Systems strengthens its critical power solutions for data centers and expands its opportunities in grid modernization.
However, the volatile macro environment and evolving trade policy affect its performance. The company expects tariff-related costs from sourcing raw materials in China and other impacted regions, with plans to pass these costs onto customers. Still, tariffs could negatively influence cash flow timing and apply slight pressure on margins. Although Flex is implementing proactive pricing strategies to counter these effects, tariffs continue to present a significant burden on overall performance.
For fiscal 2026, Flex anticipates ongoing tariff-related headwinds across its business segments. In the Reliability Solutions segment, changing tariff developments in the Automotive unit bring uncertainty to demand projections. Within the Agility Solutions segment, indirect tariff exposure in the Lifestyle unit may adversely impact consumer sentiment, while the Consumer Devices unit is expected to see softer demand due to persistent tariff uncertainty.
FLEX’s Zacks Rank & Stock Price Performance
FLEX currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 31.5% in the past year against the Zacks Electronics - Miscellaneous Products industry's decline of 11.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Juniper Networks, Inc. (JNPR - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Ubiquiti Inc. (UI - Free Report) . JNPR presently sports a Zacks Rank #1 (Strong Buy), while ANET and UI carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. In the last reported quarter, it delivered an earnings surprise of 4.88%.
Arista delivered a trailing four-quarter average earnings surprise of 11.82% and has a long-term growth expectation of 14.81%. Arista currently serves five verticals, namely cloud titans (customers that deploy more than 1 million servers, cloud specialty providers, service providers, financial services and the rest of the enterprise. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains well-suited to adapt to the changing market dynamics to overcome challenges while maximizing growth.