A month has gone by since the last earnings report for Flex (FLEX Quick QuoteFLEX - Free Report) . Shares have added about 3% in that time frame, underperforming 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? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Flex Ltd. before we dive into how investors and analysts have reacted as of late.

FLEX Q1 Earnings Beat on CPI Strength

Flex reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%.

Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results.

FLEX Gains From All Three Segments

Regulated Manufacturing Solutions revenues rose 12% year over year to $2.67 billion. Industrial demand benefited from energy infrastructure and warehouse automation, while connected medical devices supported Healthcare.
Integrated Technology Solutions revenues increased 20% to $3.06 billion, aided by stronger advanced networking demand. Cloud and Power Infrastructure generated $2.20 billion, supported by robust demand across Power and Cloud & Cooling.

Cloud and Power Infrastructure adjusted operating income rose 38% to $214 million, with margin increasing 20 basis points to 9.7%. Regulated Manufacturing Solutions income climbed 40% to $176 million, while Integrated Technology Solutions income advanced 21% to $158 million.

Flex Expands Margins on Favorable Mix

Adjusted gross profit increased 28% to $761 million. Adjusted gross margin expanded 50 basis points to 9.6%, reflecting the benefit of the company’s mix and operating execution.

Adjusted operating income climbed 35% to $534 million, while adjusted operating margin improved 70 basis points to 6.7%. GAAP selling, general and administrative expenses rose to $334 million from $233 million. Legal and other charges totaled $67 million, including $53 million primarily tied to the planned spin-off and $14 million of acquisition costs.

Cash Flow Reflects Heavy Investment

Cash provided by operating activities was $276 million, down from $399 million a year earlier. Changes in working capital and other items used $149 million against a $65 million contribution in the prior-year quarter.

Net capital expenditures were $235 million, leaving free cash flow of $41 million. Free cash flow included a $24 million negative impact from separation costs related to the Cloud and Power Infrastructure spin-off.

Flex’s Balance Sheet Changes With Deal Activity

Cash and cash equivalents increased to $2.84 billion as of June 26, 2026, from $2.39 billion at fiscal 2026-end. Long-term debt rose to $5.22 billion from $3.75 billion over the same period.

The quarter included $1.13 billion of cash used for business acquisitions and $90 million of proceeds from divestitures. Flex raised $2.83 billion through bank borrowings and long-term debt and repaid $1.39 billion of borrowings and other financing liabilities.

Q2 Guidance

For the second quarter of fiscal 2027, FLEX expects revenues of $7.95-$8.25 billion. Adjusted operating income is projected between $535 million and $565 million, with adjusted earnings of $1.00-$1.07 per share.

Management expects Regulated Manufacturing Solutions revenues to rise in the mid-single to high-single digits. Integrated Technology Solutions is projected to grow in the high-single to low-double digits, while Cloud and Power Infrastructure is expected to increase 45-55%.

Fiscal 2027 Outlook

Flex raised its fiscal 2027 revenue guidance to $33.7-$35.2 billion from $32.3-$33.8 billion. The adjusted operating margin outlook was tweaked to 7.0-7.2% from 7.0-7.1%.

Adjusted earnings guidance was raised to $4.42-$4.74 per share from $4.21-$4.51. The company now expects Cloud and Power Infrastructure revenues to grow 65-75%, while free cash flow conversion is projected at roughly 40%, down from about 60% due to one-time separation costs.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

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. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Flex has a Zacks Rank #3 (Hold). We expect an in-line 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, Teradyne (TER Quick QuoteTER - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Teradyne reported revenues of $1.33 billion in the last reported quarter, representing a year-over-year change of +103.9%. EPS of $2.47 for the same period compares with $0.57 a year ago.

For the current quarter, Teradyne is expected to post earnings of $2.03 per share, indicating a change of +138.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Teradyne. Also, the stock has a VGM Score of C.