Flex Q3 Earnings Call Highlights

• Small Names, Big Impact: The Stocks Behind NVIDIA’s Rubin

Flex (NASDAQ:FLEX) reported third-quarter fiscal 2026 results that exceeded its guidance crossed each metrics, driven by continued spot successful information center-related request and improving momentum successful concern and wellness extremity markets. Management besides raised its full-year gross and net outlook astatine the midpoint and said it expects to exit the fiscal twelvemonth with “very bully momentum.”

For the quarter, Flex delivered gross of $7.1 billion, up 8% twelvemonth implicit year. Adjusted operating borderline was 6.5%, marking different 4th supra 6%, portion adjusted net per stock roseate 13% to $0.87, which absorption described arsenic different grounds for the company.

→ Insiders Rang successful the New Year Selling These Stocks, Buyers Beware

• 2 Essential Data Center Solutions Providers Riding the AI Boom

On profitability, adjusted gross nett was $690 million and adjusted gross borderline improved to 9.8%, up 50 ground points twelvemonth implicit year. Adjusted operating nett was $460 million, and adjusted operating borderline expanded 40 ground points to 6.5%, which Flex said was a grounds level, reflecting outgo subject and a displacement toward higher-value products and services.

CEO Revathi Advaithi emphasized that the company’s information halfway maturation is being driven by expanding compute and AI workloads, and argued that the complexity of deployments favors a systems-level approach. She said Flex’s information halfway portfolio is organized astir 3 “tightly connected” capabilities: computer integration, cooling, and power.

→ Mag 7 Outlook: What Apple, Microsoft, Meta, and Tesla Just Told Us

• This mid-cap tech banal conscionable jumped 30%...and is inactive cheap

During the quarter, Flex highlighted respective initiatives and partnerships:

• Development of modular information halfway systems with NVIDIA, aimed astatine deployment velocity and scale.

• A concern with LG to beforehand thermal absorption solutions for gigawatt-scale information centers.

• Deployment of a rack-level, vertically integrated liquid cooling solution astatine the Equinix co-innovation facility.

• Introduction of an AI infrastructure platform described arsenic the archetypal globally manufactured information halfway level integrating power, cooling, compute, and services into a modular design, which absorption said tin accelerate deployment timelines by up to 30%.

In Q&A, Advaithi said some powerfulness and compute are increasing “very, precise strongly.” She noted that powerfulness capableness investments were heavier this year, portion Flex expects to put much successful compute capableness implicit the adjacent fewer years arsenic further AI programs travel online. She besides described capableness additions arsenic an ongoing rhythm of adding and digesting investments.