Flex (NASDAQ:FLEX) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Shares surged — FLEX gapped up premarket (closed $96.45, opened $119.85) and traded up to ~$126.56 after reporting Q4 adjusted EPS of $0.93 (vs. $0.87 est.) and revenue of $7.48B (vs. $6.96B), with revenue up 17.2% year‑over‑year.
• Bullish outlook and restructuring — management raised FY2027 guidance to $4.21–$4.51 adjusted EPS and $32.3B–$33.8B revenue (well above consensus) and approved a planned tax‑free spin‑off of the Cloud & Power Infrastructure segment to sharpen its AI/data‑center growth story.
• Risks and valuation gap — some insiders have sold shares recently and the MarketBeat consensus target (~$72.30) remains far below the post‑earnings price, indicating analyst/valuation lag despite strong results.

Flex Ltd. (NASDAQ:FLEX - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $96.45, but opened at $119.85. Flex shares last traded at $126.5580, with a volume of 3,782,363 shares changing hands.

The technology company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.87 by $0.06. The company had revenue of $7.48 billion during the quarter, compared to the consensus estimate of $6.96 billion. Flex had a net margin of 3.17% and a return on equity of 20.99%. The company's revenue for the quarter was up 17.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.73 earnings per share.

Trending Headlines about Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Q4 results beat consensus — Flex reported adjusted EPS of $0.93 and Q4 revenue of ~$7.5B, topping analyst estimates and showing y/y revenue growth; management highlighted continued margin strength. Press Release
• Positive Sentiment: Aggressive FY2027 guidance — Flex raised FY2027 adjusted EPS to $4.21–$4.51 (vs. consensus ~3.60) and revenue to $32.3B–$33.8B (vs. ~$29.2B), implying faster earnings growth and further margin expansion; that guidance is a primary driver of investor enthusiasm. QuiverQuant
• Positive Sentiment: Planned spin‑off sharpens AI/data‑center story — the board approved a tax‑free separation of the Cloud & Power Infrastructure segment into a new publicly traded “SpinCo” (targeted Q1 2027), positioning that business as a high‑growth AI infrastructure play while leaving Flex focused on advanced manufacturing; value‑unlocking expectations supported the rally. Spin‑off Announcement
• Positive Sentiment: Strategic tuck‑in completed — Flex closed the EP² acquisition to expand its critical power portfolio for data centers and utilities, supporting the company’s push into higher‑growth, higher‑margin infrastructure end markets. Acquisition Notice
• Neutral Sentiment: Operating performance — management noted a sixth consecutive quarter with adjusted operating margin ≥6% and continued data‑center/AI demand, but consumer market weakness remains a potential headwind to watch. Q4 Results
• Negative Sentiment: Insider selling — reports show multiple executive share sales in recent months (no insider purchases reported), which some investors may view as a negative signal even amid strong operational news. Insider Activity

Analysts Set New Price Targets

FLEX has been the subject of several recent research reports. Robert W. Baird initiated coverage on shares of Flex in a research report on Thursday, March 12th. They issued an "outperform" rating and a $70.00 target price for the company. Barclays boosted their price objective on shares of Flex from $71.00 to $72.00 and gave the stock an "overweight" rating in a research note on Thursday, February 5th. Wall Street Zen cut shares of Flex from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Stifel Nicolaus boosted their price objective on shares of Flex from $75.00 to $95.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Finally, Raymond James Financial set a $80.00 price objective on shares of Flex and gave the stock an "outperform" rating in a research note on Wednesday, February 4th. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $72.30.

Insider Buying and Selling at Flex

In other news, COO Kwang Hooi Tan sold 17,500 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $58.87, for a total value of $1,030,225.00. Following the completion of the sale, the chief operating officer directly owned 233,636 shares in the company, valued at approximately $13,754,151.32. The trade was a 6.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Flex

Several large investors have recently bought and sold shares of FLEX. Brighton Jones LLC acquired a new position in Flex during the 4th quarter valued at $260,000. Goldman Sachs Group Inc. raised its stake in Flex by 19.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,279,137 shares of the technology company's stock valued at $42,314,000 after purchasing an additional 211,046 shares during the last quarter. Empowered Funds LLC acquired a new position in Flex during the 1st quarter valued at $397,000. EverSource Wealth Advisors LLC raised its stake in Flex by 63.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,646 shares of the technology company's stock valued at $132,000 after purchasing an additional 1,031 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in Flex by 92.4% during the 2nd quarter. First Trust Advisors LP now owns 62,078 shares of the technology company's stock valued at $3,099,000 after purchasing an additional 29,821 shares during the last quarter. 94.30% of the stock is currently owned by institutional investors and hedge funds.

Flex Trading Up 29.6%

The stock has a market capitalization of $45.97 billion, a price-to-earnings ratio of 56.49, a PEG ratio of 1.98 and a beta of 1.46. The company's 50 day moving average is $71.65 and its 200 day moving average is $66.02. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.88 and a current ratio of 1.40.

Flex Company Profile

Flex NASDAQ: FLEX, formerly known as Flextronics, is a global provider of electronics manufacturing services (EMS) and original design manufacturing (ODM). The company offers end-to-end product lifecycle solutions including product design and engineering, prototyping, volume manufacturing, testing, and aftermarket services. Its offerings extend into supply chain management, component sourcing, logistics and distribution, and advanced manufacturing capabilities such as automation and digital manufacturing to support customers from concept through end-of-life.

Flex serves a broad range of industries, including automotive, healthcare, industrial, communications, and consumer electronics, working with original equipment manufacturers (OEMs) and technology companies to accelerate time to market and manage complex supply chains.

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