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FLEX also topped several of its peers, including Garmin Ltd. ((GRMN - Free Report) ), Teradyne Inc. ((TER - Free Report) ) and MKS Instruments ((MKSI - Free Report) ). GRMN and MKSI have gained 35.4% and 5.2% respectively, while TER has slipped 13.5% during the same time frame. Closing at $58.65 as of last day’s trading session (Sept. 19, 2025), FLEX stock is currently trading on par with its 52-week high of $58.8.
Image Source: Zacks Investment Research
Singapore-based Flex has a diverse workforce across 30 countries. It offers advanced manufacturing solutions and additional value to customers through a wide array of services, including design and engineering, component services, rapid prototyping, fulfilment and circular economy solutions. Looking ahead, several megatrends are likely to fuel Flex’s continued expansion.
What’s Driving FLEX’s Upside Potential?
Flex has transformed into an end-to-end solutions provider, spanning design, procurement, manufacturing and supply services across a wide array of products, from electronics to athletic footwear. The company also delivers value-added offerings in design, metals, components, supply chain integration and aftermarket services, including circular economy initiatives. Its broad capabilities, coupled with a diversified end-market and customer base, remain key strengths supporting the company’s business model.
Flex’s global manufacturing scale remains a key competitive advantage. The company operates more than 49 million square feet worldwide, including 7 million in the United States and 9 million in Mexico—making it one of the largest advanced manufacturing footprints in North America. Its facilities feature AI-enabled systems, advanced automation and localized supply chains to boost speed, flexibility and resilience. These capabilities are vital not only for the data center segment but also for major end markets such as automotive, healthcare and industrials, which together generate about 75% of total revenues. These highly regulated, complex markets require global design and delivery expertise, an area where Flex excels.
It anticipates ongoing productivity improvements through broader adoption of AI and intelligent systems across its global factories. By integrating its advanced manufacturing services with proprietary IP solutions, Flex is driving transformation across industries and regions.
Flex is expanding aggressively into the high-growth data center market. In the cloud, it delivers vertically integrated IT hardware and infrastructure solutions, including metal fabrication, custom rack assembly and advanced direct-to-chip liquid cooling. In power, its portfolio spans the full stack, from board-level power modules that regulate chip-level performance to facility-scale modular power pods.
Recently, FLEX’s subsidiary, FLEX Power Modules, announced a partnership with Renesas to develop next-generation board-mounted power management solutions. Flex Power Modules, a global leader in advanced power conversion solutions, brings scalable data center manufacturing capabilities, innovative power and cooling products, and end-to-end lifecycle services. It remains on track to generate approximately $6.5 billion in revenues from data centers, indicating year-over-year growth of at least 35% and accounting for 25% of its total revenues.
Image Source: Zacks Investment Research
FLEX has been on an acquisition spree to expand its manufacturing footprint as well as penetrate new end-markets. 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. It also finalized its $325 million acquisition of Crown Technical Systems, expanding its power portfolio and increasing its presence in the U.S. data center and utility power markets. The company’s previous acquisitions, like Bose facilities, Mirror Controls International (MCi) and the Alcatel-Lucent facility, expanded its footprint in the audio systems, automotive and telecom markets.
FLEX Faces Multiple Near-Term Headwinds
Despite its strengths, Flex faces several risks that could hamper its growth trajectory. Flex continues to experience softness in its Reliability Solutions business, driven by ongoing macroeconomic pressures in the automotive and renewables sectors. This weakness is being partially offset by solid performance in the power segment.
Furthermore, Flex’s highly leveraged balance sheet, macro uncertainty and evolving trade policy remain overhangs. Tariffs tied to raw material sourcing could weigh on margins and disrupt cash flow despite pass-through efforts. Indirect exposure in the Lifestyle unit also risks dampening consumer demand, leaving tariffs as a persistent headwind for fiscal 2026.
FLEX’s Valuation
From a valuation standpoint, FLEX appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 20.62 forward earnings, lower than 25.36 for the industry.
Image Source: Zacks Investment Research
In comparison, GRMN, TER and MKSI are trading at multiples of 28.17, 27.65 and 14.85, respectively.
End Note
FLEX is riding on favorable market trends amid strong execution and strategic positioning in high-growth industries. Flex raised its fiscal 2026 outlook on strong data center momentum and expanded power capacity in Europe. The company now targets $6.5 billion in data center revenues with healthy margins despite tariff headwinds and investment needs. Management remains focused on high-growth markets, operational efficiency and disciplined capital allocation to drive both organic and acquisitive growth.
Image: Bigstock
Flex Stock Up 75% in 12 Months: Will the Momentum Hold Amid Headwinds?
Key Takeaways
Flex Ltd. ((FLEX - Free Report) ) stock has surged 75% in the past year, outperforming the Zacks Electronics - Miscellaneous Products industry, the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 7.5%, 31.2% and 18.8%, respectively. The stock has risen 53.1% in the past six months.
Image Source: Zacks Investment Research
FLEX also topped several of its peers, including Garmin Ltd. ((GRMN - Free Report) ), Teradyne Inc. ((TER - Free Report) ) and MKS Instruments ((MKSI - Free Report) ). GRMN and MKSI have gained 35.4% and 5.2% respectively, while TER has slipped 13.5% during the same time frame. Closing at $58.65 as of last day’s trading session (Sept. 19, 2025), FLEX stock is currently trading on par with its 52-week high of $58.8.
Image Source: Zacks Investment Research
Singapore-based Flex has a diverse workforce across 30 countries. It offers advanced manufacturing solutions and additional value to customers through a wide array of services, including design and engineering, component services, rapid prototyping, fulfilment and circular economy solutions. Looking ahead, several megatrends are likely to fuel Flex’s continued expansion.
What’s Driving FLEX’s Upside Potential?
Flex has transformed into an end-to-end solutions provider, spanning design, procurement, manufacturing and supply services across a wide array of products, from electronics to athletic footwear. The company also delivers value-added offerings in design, metals, components, supply chain integration and aftermarket services, including circular economy initiatives. Its broad capabilities, coupled with a diversified end-market and customer base, remain key strengths supporting the company’s business model.
Flex’s global manufacturing scale remains a key competitive advantage. The company operates more than 49 million square feet worldwide, including 7 million in the United States and 9 million in Mexico—making it one of the largest advanced manufacturing footprints in North America. Its facilities feature AI-enabled systems, advanced automation and localized supply chains to boost speed, flexibility and resilience. These capabilities are vital not only for the data center segment but also for major end markets such as automotive, healthcare and industrials, which together generate about 75% of total revenues. These highly regulated, complex markets require global design and delivery expertise, an area where Flex excels.
It anticipates ongoing productivity improvements through broader adoption of AI and intelligent systems across its global factories. By integrating its advanced manufacturing services with proprietary IP solutions, Flex is driving transformation across industries and regions.
Flex is expanding aggressively into the high-growth data center market. In the cloud, it delivers vertically integrated IT hardware and infrastructure solutions, including metal fabrication, custom rack assembly and advanced direct-to-chip liquid cooling. In power, its portfolio spans the full stack, from board-level power modules that regulate chip-level performance to facility-scale modular power pods.
Recently, FLEX’s subsidiary, FLEX Power Modules, announced a partnership with Renesas to develop next-generation board-mounted power management solutions. Flex Power Modules, a global leader in advanced power conversion solutions, brings scalable data center manufacturing capabilities, innovative power and cooling products, and end-to-end lifecycle services. It remains on track to generate approximately $6.5 billion in revenues from data centers, indicating year-over-year growth of at least 35% and accounting for 25% of its total revenues.
Image Source: Zacks Investment Research
FLEX has been on an acquisition spree to expand its manufacturing footprint as well as penetrate new end-markets. 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. It also finalized its $325 million acquisition of Crown Technical Systems, expanding its power portfolio and increasing its presence in the U.S. data center and utility power markets. The company’s previous acquisitions, like Bose facilities, Mirror Controls International (MCi) and the Alcatel-Lucent facility, expanded its footprint in the audio systems, automotive and telecom markets.
FLEX Faces Multiple Near-Term Headwinds
Despite its strengths, Flex faces several risks that could hamper its growth trajectory. Flex continues to experience softness in its Reliability Solutions business, driven by ongoing macroeconomic pressures in the automotive and renewables sectors. This weakness is being partially offset by solid performance in the power segment.
Furthermore, Flex’s highly leveraged balance sheet, macro uncertainty and evolving trade policy remain overhangs. Tariffs tied to raw material sourcing could weigh on margins and disrupt cash flow despite pass-through efforts. Indirect exposure in the Lifestyle unit also risks dampening consumer demand, leaving tariffs as a persistent headwind for fiscal 2026.
FLEX’s Valuation
From a valuation standpoint, FLEX appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 20.62 forward earnings, lower than 25.36 for the industry.
Image Source: Zacks Investment Research
In comparison, GRMN, TER and MKSI are trading at multiples of 28.17, 27.65 and 14.85, respectively.
End Note
FLEX is riding on favorable market trends amid strong execution and strategic positioning in high-growth industries. Flex raised its fiscal 2026 outlook on strong data center momentum and expanded power capacity in Europe. The company now targets $6.5 billion in data center revenues with healthy margins despite tariff headwinds and investment needs. Management remains focused on high-growth markets, operational efficiency and disciplined capital allocation to drive both organic and acquisitive growth.
With a Zacks Rank #3 (Hold) at present, the stock appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here