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Flex to Report Q2 Earnings: What's in the Cards for the Stock?
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Key Takeaways
Flex's Q2 earnings are projected to rise 32.9% year over year, with revenues expected to grow 20.2%.
CPI revenues are projected to surge 45-55%, fueled by AI infrastructure and cloud power demand.
Strong networking and industrial demand may boost growth, but capacity investments could pressure margins.
Flex Ltd. (FLEX - Free Report) is slated to report second-quarter fiscal 2027 results on Oct. 28, before market open.
The Zacks Consensus Estimate for fiscal second-quarter revenues is $8.18 billion, which indicates an increase of 20.2% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at $1.05 per share, up 32.9% year over year.
For the quarter, the company expects net revenues of $7.95-$8.25 billion. Management expects adjusted earnings of $1.00-$1.07 per share.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.78%, on average.
Flex is expected to have benefited from robust demand for AI infrastructure, particularly across its Cloud and Power Infrastructure (CPI) segment, in the second quarter of fiscal 2027. Increasing investments in data center infrastructure, power management solutions and new customer programs are likely to have supported the company's performance.
The CPI segment is expected to have been the primary growth driver. On the last earnings call, management projected CPI revenues to increase 45-55% year over year in the fiscal second quarter, accelerating from 35% growth in the preceding quarter. The anticipated improvement reflects continued ramp-ups across cloud and power infrastructure programs. Management highlighted strong business visibility, with more than 90% of the segment's expected business already booked for the remaining three quarters of fiscal 2027. The Zacks Consensus Estimate for the CPI segment's net sales is pegged at $2.47 billion.
Increasing power requirements associated with next-generation AI workloads are likely to have strengthened demand for Flex's electrical and thermal management solutions. The company is advancing its 400-volt and 800-volt power technologies to address evolving data center requirements. Management highlighted growing customer interest in integrated power, cooling and compute solutions, including its modular infrastructure capabilities developed in collaboration with NVIDIA.
Flex is also expanding its manufacturing capacity to support accelerating demand. The company is investing in facilities, cooling infrastructure and manufacturing capabilities, alongside expanding modular power capacity in Dallas and Iowa. These initiatives, supported by the Crown and Electrical Power Products (EP²) acquisitions, are expected to facilitate new program deployments. Additionally, the company's JetCool business is progressing with customer qualification of coolant distribution units, while its expanding partnership with Cerebras Systems is supporting the scale-up of advanced AI accelerator manufacturing and cooling solutions.
Recently, Flex also completed its acquisition of EPC Power, a provider of intelligent power conversion solutions for data center and grid applications. EPC Power joins Flex’s Cloud and Power Infrastructure segment, enhancing capabilities across power, cooling and compute to meet rising AI data center demand.
Beyond CPI, strength in advanced networking is likely to have benefited the Integrated Technology Solutions (ITS) segment. Management expects ITS revenues to grow in the high single-digit to low double-digit range year over year in the fiscal second quarter. Sustained demand for high-speed switches, optical networking products and network interface technologies, supported by data center investments and market-share gains, is expected to have driven growth. The Zacks Consensus Estimate for ITS segment’s net sales is pegged at $3.02 billion.
The Regulated Manufacturing Solutions (RMS) segment is also expected to have witnessed healthy industrial demand. Management anticipates RMS revenues to increase in the mid-single-digit to high single-digit range, supported by energy infrastructure, robotics and warehouse automation. Increasing investments in electrical infrastructure and automation solutions remain favorable growth drivers. The Zacks Consensus Estimate for net sales of RMS segment is pegged at $2.66 billion.
However, continued weakness in consumer-related end markets is likely to have partially offset strength in ITS. Additionally, substantial capacity investments and expenses associated with new program ramps might have constrained near-term margins and cash flows. Costs related to the planned CPI spin-off, expected in the first quarter of calendar 2027, remain another concern.
Earnings Whispers for FLEX
Our proven model does not predict an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
FLEX has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #1 at present.
STX is scheduled to report quarterly figures on Oct. 27, 2026. The Zacks Consensus Estimate for Seagate’s to-be-reported quarter’s earnings and revenues is pinned at $7.44 per share and $4.11 billion, respectively. Its shares are up 175.4% in the past year.
Intel (INTC - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2. INTC is scheduled to report quarterly earnings on Oct. 29, 2026. The Zacks Consensus Estimate for Intel’s to-be-reported quarter’s earnings and revenues stands at 39 cents per share and $16.44 billion, respectively. Its shares have gained 119.9% in the past year.
Vertiv (VRT - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on Oct. 28, 2026. The Zacks Consensus Estimate for Vertiv’s to-be-reported quarter’s earnings and revenues is pinned at $1.82 per share and $3.76 billion, respectively. Its shares are up 0.8% in the past year.
View the Zacks #1 Rank List
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Flex to Report Q2 Earnings: What's in the Cards for the Stock?
Key Takeaways
Flex Ltd. (FLEX - Free Report) is slated to report second-quarter fiscal 2027 results on Oct. 28, before market open.
The Zacks Consensus Estimate for fiscal second-quarter revenues is $8.18 billion, which indicates an increase of 20.2% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at $1.05 per share, up 32.9% year over year.
For the quarter, the company expects net revenues of $7.95-$8.25 billion. Management expects adjusted earnings of $1.00-$1.07 per share.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.78%, on average.
In the past year, the stock has surged 18.4% compared with the Zacks Electronics - Miscellaneous Products industry’s growth of 6.3%.
Image Source: Zacks Investment Research
Factors Shaping FLEX’s Q2 Results
Flex is expected to have benefited from robust demand for AI infrastructure, particularly across its Cloud and Power Infrastructure (CPI) segment, in the second quarter of fiscal 2027. Increasing investments in data center infrastructure, power management solutions and new customer programs are likely to have supported the company's performance.
The CPI segment is expected to have been the primary growth driver. On the last earnings call, management projected CPI revenues to increase 45-55% year over year in the fiscal second quarter, accelerating from 35% growth in the preceding quarter. The anticipated improvement reflects continued ramp-ups across cloud and power infrastructure programs. Management highlighted strong business visibility, with more than 90% of the segment's expected business already booked for the remaining three quarters of fiscal 2027. The Zacks Consensus Estimate for the CPI segment's net sales is pegged at $2.47 billion.
Increasing power requirements associated with next-generation AI workloads are likely to have strengthened demand for Flex's electrical and thermal management solutions. The company is advancing its 400-volt and 800-volt power technologies to address evolving data center requirements. Management highlighted growing customer interest in integrated power, cooling and compute solutions, including its modular infrastructure capabilities developed in collaboration with NVIDIA.
Flex is also expanding its manufacturing capacity to support accelerating demand. The company is investing in facilities, cooling infrastructure and manufacturing capabilities, alongside expanding modular power capacity in Dallas and Iowa. These initiatives, supported by the Crown and Electrical Power Products (EP²) acquisitions, are expected to facilitate new program deployments. Additionally, the company's JetCool business is progressing with customer qualification of coolant distribution units, while its expanding partnership with Cerebras Systems is supporting the scale-up of advanced AI accelerator manufacturing and cooling solutions.
Recently, Flex also completed its acquisition of EPC Power, a provider of intelligent power conversion solutions for data center and grid applications. EPC Power joins Flex’s Cloud and Power Infrastructure segment, enhancing capabilities across power, cooling and compute to meet rising AI data center demand.
Flex Ltd. Price and EPS Surprise
Flex Ltd. price-eps-surprise | Flex Ltd. Quote
Beyond CPI, strength in advanced networking is likely to have benefited the Integrated Technology Solutions (ITS) segment. Management expects ITS revenues to grow in the high single-digit to low double-digit range year over year in the fiscal second quarter. Sustained demand for high-speed switches, optical networking products and network interface technologies, supported by data center investments and market-share gains, is expected to have driven growth. The Zacks Consensus Estimate for ITS segment’s net sales is pegged at $3.02 billion.
The Regulated Manufacturing Solutions (RMS) segment is also expected to have witnessed healthy industrial demand. Management anticipates RMS revenues to increase in the mid-single-digit to high single-digit range, supported by energy infrastructure, robotics and warehouse automation. Increasing investments in electrical infrastructure and automation solutions remain favorable growth drivers. The Zacks Consensus Estimate for net sales of RMS segment is pegged at $2.66 billion.
However, continued weakness in consumer-related end markets is likely to have partially offset strength in ITS. Additionally, substantial capacity investments and expenses associated with new program ramps might have constrained near-term margins and cash flows. Costs related to the planned CPI spin-off, expected in the first quarter of calendar 2027, remain another concern.
Earnings Whispers for FLEX
Our proven model does not predict an earnings beat for FLEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
FLEX has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #1 at present.
STX is scheduled to report quarterly figures on Oct. 27, 2026. The Zacks Consensus Estimate for Seagate’s to-be-reported quarter’s earnings and revenues is pinned at $7.44 per share and $4.11 billion, respectively. Its shares are up 175.4% in the past year.
Intel (INTC - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2. INTC is scheduled to report quarterly earnings on Oct. 29, 2026. The Zacks Consensus Estimate for Intel’s to-be-reported quarter’s earnings and revenues stands at 39 cents per share and $16.44 billion, respectively. Its shares have gained 119.9% in the past year.
Vertiv (VRT - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #2 at present. The company is scheduled to report quarterly figures on Oct. 28, 2026. The Zacks Consensus Estimate for Vertiv’s to-be-reported quarter’s earnings and revenues is pinned at $1.82 per share and $3.76 billion, respectively. Its shares are up 0.8% in the past year.