Slides
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Q2 FY26 Earnings Presentation Quarter End: September 26, 2025 Earnings Announcement: October 29, 2025
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This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; the effects that the current and future macroeconomic environment, including inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates, could have on our business and demand for our products; geopolitical uncertainties and risks, including impacts from trade conflicts, the termination and renegotiation of international trade agreements and trade policies, a further escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, or the ongoing conflicts between Russia and Ukraine and in the Middle East, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, including those involving suppliers who are sole or primary sources, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, including semiconductors, labor and energy; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers' commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory and other issues which adversely affect our operating results; our dependence on a small number of customers; our industry is extremely competitive; that the expected revenue and margins from recently launched programs may not be realized; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; the possibility that benefits of our restructuring actions may not materialize as expected; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and adversely affect our operations; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits; hiring and retaining key personnel; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; litigation and regulatory investigations and proceedings; risks related to the spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; the impact and effects on our business, results of operations and financial condition of union disputes or other labor disruptions as well as unforeseen or catastrophic events; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement, misuse or breach of license agreements; physical and operational risks from natural disasters, severe weather events, or climate change; we may be exposed to product liability and product warranty liability; we may be exposed to financially troubled customers or suppliers; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to trade policy and tariffs and climate change; our ability to meet sustainability, including environmental, social and governance, expectations or standards or achieve sustainability goals. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10- K and in our subsequent filings with the U.S. Securities and Exchange Commission. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made. Please refer to the appendix section of this presentation for reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP measures. If this presentation references historical non-GAAP financial measures, these measures are located on the “Investor Relations” section of our website, www.flex.com along with the required reconciliation to the most comparable GAAP financial measures. We present forward looking non GAAP financial measures in our third quarter and full year fiscal 2026 guidance, including adjusted operating income, adjusted operating margin, adjusted income tax rate, and adjusted EPS. We do not provide a reconciliation of these measures to the most directly comparable GAAP measures because the information necessary to do so is not available without unreasonable effort due to the inherent variability, complexity, and uncertainty in forecasting certain items required for such a reconciliation. These items may include restructuring charges and impairment charges, among others. The information that is unavailable could be material and could significantly affect our GAAP results. The figures presented in this presentation have been rounded.This may lead to individual values not adding up to the totals presented. The following business segment acronyms will be used throughout this presentation: Risks and non-GAAP disclosures 2 Industrial: industrial devices, capital equipment, renewables, critical power, and embedded power. Automotive: compute platforms, power electronics, motion and interface. Health Solutions: medical devices, medical equipment, and drug delivery. CEC: data center, edge, and communications infrastructure. Lifestyle: appliances, floorcare, smart living, HVAC, and power tools. Consumer Devices: including mobile and high-velocity consumer devices. Flex Reliability Solutions Flex Agility Solutions
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Business update Revathi Advaithi Chief Executive Officer
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Executive summary Adj. operating income $409M Revenue $6.8B Adj. net income $300M Q2 FINANCIAL PERFORMANCE Adj. earnings per share $0.79 Adj. operating margin 6.0% BUSINESS UPDATES Adj. Operating Margins: 6.0%, +55bps Y/Y, fourth consecutive quarter with margins 6.0%+ Adj. Earnings per Share: +23% Y/Y FINANCIAL • Sustained momentum across our data center portfolio, advancing next-generation AI power, compute and cooling solutions with key customer and technology partners. • Growth in Medical Devices, Optical, and Satcom, demonstrating strength across growth markets within our diversified portfolio. • Encouraging signs of stabilization in Automotive and Renewables, supporting long-term growth outlook PORTFOLIO TIME: Named to TIME's World's Best Companies List for third consecutive yearAWARDS 4 See Appendix for GAAP to non-GAAP reconciliations.
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Power and compute: winning solutions for the data center ABOVE AND AROUND THE RACK (CRITICAL POWER) LV & MV switch gear Power distribution units (PDU) Remote power panels (RPP) Busway Capacitive energy storage Power shelves Battery backup units (BBUs) Power modules Power supplies IN THE RACK (EMBEDDED POWER) Power Pods Utility control building Vertical Power Delivery (VPD) Metering Reliability Agility Health Solutions Automotive Industrial CEC Lifestyle Consumer Devices Power Cloud IT HARDWARE LIQUID COOLING SmartSense coolant distribution unit (CDU) SmartPlate System Liquid-Assisted Air Cooling SmartLid cold plate SmartPlate cold plate Custom compute Racks & enclosures Fully integrated racks 5 Total Data Center Revenue $6.5B FY26E +35% Y/Y
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Flex’s AI Infrastructure Platform accelerates AI data-center deployment by up to 30%, integrating power, cooling, and compute into one scalable solution Deploying data centers with speed and scale 6 Product and Partner Spotlight Partnership with NVIDIA to deploy modular data center systems for giga- scale AI factories Collaborations with NVIDIA & Renesas on in- rack power products that improve efficiency Modular rack-level CDU provides scalable liquid cooling for evolving AI and HPC requirements Lifecycle intelligence Enables monitoring, analytics, and optimization for smarter operations. Flexible architecture Works with preferred OEMs, offering adaptability without compromise. End-to-end infrastructure Combines compute, power, and cooling for higher performance and reliability. Unveiled at the OCP Global Summit on Oct 13th, 2025
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Financials Kevin Krumm Chief Financial Officer
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Key financials 8 Q2FY25 Q2FY26 FLEX Revenue $6,545M $6,804M Adj. Gross Profit / Margin $554M / 8.5% $632M / 9.3% Adj. Operating Income / Margin $358M / 5.5% $409M / 6.0% Adj. Earnings Per Share $0.64 $0.79 See Appendix for GAAP to non-GAAP reconciliations. • Strong execution in a dynamic environment • Robust data center growth across both Cloud and Power end markets • Solid Y/Y margin expansion supported by favorable mix, strong execution, and disciplined cost management
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REVENUE ADJ. OPERATING INCOME ADJ. OPERATING MARGIN ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y CHANGE RELIABILITY $3.0 3% $197 24% 6.5% 105 bps AGILITY $3.8 4% $227 4% 6.0% (5 bps) CORPORATE SERVICES AND OTHER A -- -- ($15) -- -- -- TOTAL $6.8 4% $409 14% 6.0% 55 bps Segment performance 9 A. Corporate Services and Other includes centralized administrative costs that are not included in the assessment of the perform ance of each of the identified segments. See Appendix for GAAP to non-GAAP reconciliations. 55% 45% $6.8B TOTAL FLEX REVENUE
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Cash flow overview 10 ($M) Q2FY26 FYTD GAAP NET INCOME $199 $391 Depreciation, Amortization and other Impairment Charges 156 298 Change in Working Capital and other, net 98 163 OPERATING CASH FLOW 453 852 Capital expenditures, net A (148) (279) FREE CASH FLOW 305 573 Payments for Share Repurchases (297) (544) Other Investing, Financing, and FX, net 2 (69) NET CHANGE IN CASH AND CASH EQUIVALENTS $10 ($40) $100 $107 $108 $131 $148 Q2F25 Q3F25 Q4F25 Q1F26 Q2F26 CAPITAL EXPENDITURES, NET A ($M) $219 $306 $325 $268 $305 Q2F25 Q3F25 Q4F25 Q1F26 Q2F26 FREE CASH FLOW ($M) A. Capital expenditures, net is calculated as purchases of property and equipment minus proceeds from the disposition of propert y and equipment. See Appendix for GAAP to non-GAAP reconciliations.
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FY26 Guidance 11 Current Market Assumptions & Outlook • Increasing FY26 revenue, adj. operating margin, and adj. EPS expectations • Robust data center demand drives strong FY26 revenue performance • Expect to reach FY27 goal for 6%+ adj. operating margin one year early • Strong contractual protection for tariff pass-throughs • Stable supply of semiconductors and other components $3.09 - $3.17 adj. earnings per share 6.2% - 6.3% adj. operating margin 80%+ free cash flow conversion $26.7 - $27.3B revenue $180 - $190M interest and other expense
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FY26 Revenue expectations 12 RELIABILITY Up low-single digit to up mid-single digit Industrial Ongoing strong demand in data center power balanced against soft core industrial; stabilization in renewables Health Solutions Steady medical device demand, anticipated improvement in medical equipment in late FY26 Automotive Broader trends and macro environment remain soft, but stabilizing AGILITY Up mid-single digit to up high-single digit CEC Continued strong cloud and AI demand, networking share gains Lifestyle Recently established strategic manufacturing partnership and program ramps continues to support operations; offset by Mukachevo Consumer Devices Expecting softer consumer demand Balancing growth in key markets & managing mix against continued macro uncertainty
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Q3 FY26 Guidance 13 Adj. operating income $405M - $435M Revenue $6.65B - $6.95B Adj. earnings per share $0.74 - $0.80 Adj. income tax rate 21% Interest and other expense $54M Weighted avg. shares outstanding 377M RELIABILITY Up mid-single digit to up high-single digit AGILITY Down low-single digit to up low-single digit
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Thank you. For more information, please visit investors.flex.com
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Appendix
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Quarter-ended Quarter-ended Quarter-ended Quarter-ended September 26, 2025 June 27, 2025 September 27, 2024 June 28, 2024 % of revenue % of revenue % of revenue % of revenue ($ in Millions) GAAP gross profit $614 9.0% $572 8.7% $531 8.1% $471 7.5% Stock-based compensation expense 9 8 8 8 Restructuring charges 9 16 15 16 Non-GAAP gross profit $632 9.3% $596 9.1% $554 8.5% $495 7.8% For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods. Appendix: Reconciliation of GAAP to Non-GAAP Measures
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Appendix: Reconciliation of GAAP to Non-GAAP Measures *We calculate our Non-GAAP operating margin as non-GAAP operating income divided by revenue for the respective periods. For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods. Quarter- ended Quarter- ended Quarter- ended Quarter- ended September 26, 2025 June 27, 2025 September 27, 2024 June 28, 2024 ($ in Millions) GAAP operating income $296 $311 $297 $233 Intangible amortization 16 21 16 16 Stock-based compensation expense 37 34 28 32 Restructuring and impairment charges 51 23 17 25 Legal and other 9 6 - - Non-GAAP operating income $409 $395 $358 $306 GAAP operating margin 4.4% 4.7% 4.5% 3.7% Non-GAAP operating margin* 6.0% 6.0% 5.5% 4.8%
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For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods. Quarter- ended Quarter- ended Quarter- ended Quarter- ended ($ in Millions, except for EPS) September 26, 2025 June 27, 2025 September 27, 2024 June 28, 2024 GAAP net income $199 $192 $214 $139 Intangible amortization 16 21 16 16 Stock-based compensation expense 37 34 28 32 Restructuring and impairment charges 51 23 17 25 Legal and other 9 6 - - Equity in (earnings) losses of unconsolidated affiliates 8 17 - - Interest and other, net (3) - (1) - Adjustments for taxes (17) (19) (19) (1) Non-GAAP net income $300 $274 $255 $211 Diluted earnings per share GAAP $0.52 $0.50 $0.54 $0.34 NON-GAAP $0.79 $0.72 $0.64 $0.51 Diluted shares used in computing per share amounts 380 381 400 411 Appendix: Reconciliation of GAAP to Non-GAAP Measures
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*Corporate and Other includes centralized administrative costs that are not included in the assessment of the performance of e ach of the identified segments. **We calculate our segment operating margin as segment income divided by revenue for respective periods. For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods. Quarter- ended September 26, 2025 ($ in Millions) Segment income: Flex Agility Solutions $227 Flex Reliability Solutions 197 Corporate and Other* (15) Total segment income $409 Operating margin**: Flex Agility Solutions 6.0% Flex Reliability Solutions 6.5% Quarter- Ended September 26, 2025 ($ in Millions) Reconciliation of segment income GAAP Operating Income $296 Intangible amortization 16 Stock-based compensation expense 37 Restructuring and impairment charges 51 Legal and other 9 Total segment income $409 Appendix: Reconciliation of GAAP to Non-GAAP Measures
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*Free cash flow is calculated as operating cash flow for the quarter less purchases of property and equipment, net of proceed s from the disposition of property equipment, or net capital expenditures. Free cash flow is a non-GAAP financial measure and may not be defined and calculated by other companies in the same manner. For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods. Quarter- ended Quarter- Ended Quarter- ended Quarter- ended Quarter- ended Quarter- ended ($ in Millions) September 26, 2025 June 27, 2025 March 31, 2025 December 31, 2024 September 27, 2024 June 28, 2024 Net cash provided by operating activities $453 $399 $433 $413 $319 $340 Net capital expenditures (148) (131) (108) (107) (100) (108) Free cash flow* $305 $268 $325 $306 $219 $232 Appendix: Reconciliation of GAAP to Non-GAAP Measures Six-Months ended ($ in Millions) September 26, 2025 Net cash provided by operating activities $852 Net capital expenditures (279) Free cash flow* $573