FLEX tops Q3 FY26 earnings and revenue estimates on strong AI-driven demand and raised full-year guidance, yet shares slid as investor concerns resurfaced.
Although the revenue and EPS for Flex (FLEX) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Flex Ltd. (FLEX) Q3 2026 Earnings Call Transcript
Flex (FLEX) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.77 per share a year ago.
Flex heads into its Q3 FY26 report with consensus calling for higher revenues and EPS, fueled by accelerating data center demand.
FLEX LNG Ltd. maintains premium P/S and P/B valuations due to its high dividend yield and long-term charter backlog. 2025 guidance signals negative growth: revenue down 4.6%, adjusted EBITDA down 8.4%, and TCE/day below 2024 levels. FLNG's dividend yield is 11.44%, but recent coverage slipped below 1x as operating cash flow lagged dividend payments.
FLEX LNG is rated a Strong Buy for its high dividend yield, revenue visibility, and stable long-term contracts. FLNG operates a young fleet of 13 LNG vessels, with 12 on long-term charters, minimizing spot rate exposure and ensuring steady cash flow. Despite operating cash flow not fully covering dividends, a $500 million cash reserve supports payout sustainability for decades if current conditions persist.
Flex remains attractively valued versus peers, despite a 179% return since January 2024 and a strong operational shift. FLEX's transition to higher-margin products like AI data centers and automotive systems has driven improved profitability and resilient cash flow. FY2026 guidance projects revenue of $26.7–$27.3 billion, with gross margin rising to 9.14% and levered free cash flow at $998.4 million TTM.
FLEX is riding strong cloud and power results, rapid data center growth and robust cash flow, even as tariffs, debt and competition pose risks.
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