A month has gone by since the last earnings report for Flex (FLEX Quick QuoteFLEX - Free Report) . Shares have added about 20.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Flex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Flex Q4 Earnings Beat Estimates

Flex reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter.

Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer.

Management highlighted that the company’s strong finish to fiscal 2026 reflected disciplined execution and a well-defined strategy, supported by targeted acquisitions and capital investments aligned with Flex’s long-term growth opportunities.

Flex has announced its intention to spin off its Cloud and Power Infrastructure segment into a newly formed, independent, publicly traded company, marking a significant step in the company's broader strategic realignment.

As part of this reorganization, Flex is separating its Data Center business and realigning into three distinct segments. The first, Regulated Manufacturing Solutions, will serve Industrial, Automotive, and Healthcare markets, covering automation and energy infrastructure, compute and power electronics, and regulated medical devices, respectively. The second, Integrated Technology Solutions, will focus on Communications through high-speed networking and enterprise systems and on Lifestyle through premium products across commercial, home and personal categories. The third and newly defined segment, Cloud and Power Infrastructure, will deliver compute, liquid cooling and data center architecture solutions alongside critical rack-level and embedded power capabilities.

Segment Details

Regulated Manufacturing Solutions Segment: This segment encompasses Health Solutions, Automotive and Industrial businesses. Revenues grew 13% to $2.7 billion, accounting for 36% of net sales.

Integrated Technology Solutions Segment: This segment comprises Communications and Lifestyle businesses. Revenues grew 13% to $2.9 billion, accounting for 39% of net sales.

Cloud and Power Infrastructure Segment: This segment comprises Cloud $ Cooling and Power businesses. Revenues increased 31% to $1.8 billion, accounting for 25% of net sales.

Operating Details

Non-GAAP gross profit came in at $737 million, up from $602 million reported in the year-ago quarter. Non-GAAP gross margin expanded 50 basis points (bps) to 9.9% in the reported quarter.

Non-GAAP operating income came in at $500 million, up from $396 million reported a year ago. Non-GAAP operating margin expanded 50 bps to 6.7%.

Selling, general & administrative expenses totaled $289 million, up 23.5% year over year.

Balance Sheet & Cash Flow

As of March 31, 2026, cash & cash equivalents and long-term debt (net of current portion) were $2.4 billion and $3.8 billion, respectively, compared with $3.1 billion and $3.8 billion as of Dec. 31, 2025.

The company generated a fourth-quarter fiscal 2026 cash flow from operating activities of $413 million and an adjusted free cash flow of $212 million.

In the quarter, the company repurchased $200 million worth of stock.

Flex Guidance

For the first quarter of fiscal 2027, the company expects net sales in the range of $7.35 billion to $7.65 billion, representing growth of approximately 14% at the midpoint of the guidance. Adjusted operating income is projected to be between $469 million and $499 million, while adjusted EPS are anticipated to be 86-92 cents, suggesting growth of 24% at the midpoint. Interest and other expenses are expected to be approximately $65 million. The adjusted income tax rate is projected at 21%, with weighted average shares outstanding estimated at approximately 374 million.

For fiscal 2027, the company expects net sales to range between $32.3 billion and $33.8 billion, representing growth of approximately 18% at the midpoint of the guidance. Adjusted operating margin is projected to be between 7% and 7.1%, while adjusted EPS is expected to range from $4.21 to $4.51, implying growth of 32% at the midpoint. The adjusted income tax rate for the fiscal year is expected to remain at 21%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 12.09% due to these changes.

VGM Scores

Currently, Flex has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Flex has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Flex belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, KLA (KLAC Quick QuoteKLAC - Free Report) , has gained 17% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

KLA reported revenues of $3.42 billion in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $9.40 for the same period compares with $8.41 a year ago.

KLA is expected to post earnings of $9.97 per share for the current quarter, representing a year-over-year change of +6.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for KLA. Also, the stock has a VGM Score of F.