Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters, with adjusted EPS of $0.79, up 23% year-over-year [6][12] - Gross profit totaled $632 million, with a gross margin improvement to 9.3%, up 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [12][13] - Operating income for Reliability Solutions improved to $197 million, with a segment margin expansion to 6.5% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [7][8] - Medical device demand is steady, with anticipated improvements in medical equipment later this year [10] - The automotive market is stabilizing compared to prior quarters, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses, particularly in AI and data center infrastructure [8][9] - Flex unveiled a new AI infrastructure platform aimed at enhancing data center deployment efficiency [9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate a dynamic tariff landscape and raised full-year revenue guidance to between $26.7 billion and $27.3 billion [15][16] - The company anticipates strong cash generation and maintains an 80%+ free cash flow conversion target for FY2026 [16] - Management highlighted the importance of partnerships with leading technology companies to support growth in the data center space [46] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [20][22] Question: How does the mix of custom silicon versus merchant silicon impact the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [25][27] Question: What is driving margin improvements in the second half? - Management noted that growth in higher-margin businesses, particularly products and services, is expected to drive margin improvements [33][34] Question: How does the company view the automotive market's growth potential? - Management stated that they are cautiously optimistic about stabilizing growth in the automotive sector, with opportunities across various platforms [55][56] Question: What is the outlook for data center capacity and potential supply constraints? - Management expressed confidence in capacity and capability across regions, with plans for significant CapEx investments to support growth [70][71] Question: How is AI and automation being utilized in operations? - Management highlighted ongoing efforts to deploy AI and robotics to enhance productivity and efficiency in manufacturing and logistics [72][76]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters [6][12] - Adjusted EPS increased by 23% to $0.79, marking a record for the company [6][12] - Gross profit totaled $632 million, with gross margin improving to 9.3%, an increase of 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [12][13] - Operating income for Reliability Solutions improved to $197 million, with segment margin expanding by 105 basis points to 6.5% [13] - Operating income for Agility Solutions was $227 million, with operating margin slightly down to 6% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [6][10] - Medical device demand is steady, with anticipated improvements in medical equipment later this year [10] - The automotive market is stabilizing compared to prior quarters, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses [6][10] - Flex is positioned to benefit from the AI-driven infrastructure buildout, partnering with leading technology companies to enhance data center capabilities [7][9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain strong top-line momentum in the second half of FY2026, with an acceleration expected in Q4 [15] - The company raised its full-year revenue guidance to between $26.7 billion and $27.3 billion, reflecting a $500 million improvement from previous estimates [15][16] - Management highlighted the importance of partnerships, particularly with Amazon, in driving long-term growth in the data center space [48][49] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] - The impact of the Ukraine facility shutdown is estimated to be slightly over $100 million in revenue for the back half of the year [45] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [21][22] Question: How does the mix of custom silicon versus merchant silicon affect the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [26][27] Question: What is driving margin improvements in the second half? - Management noted that growth in products and services businesses, which have higher margins, is expected to drive margin improvements [35][36] Question: How does the company view the automotive market's growth potential? - Management expressed cautious optimism, noting that they are platform agnostic and continue to see compute wins across various platforms [60][61] Question: What is the company's capacity to support data center growth? - Management confirmed strong capacity in EMEA and North America, with plans for significant CapEx investments to support growth in data centers [74][75] Question: What innovations are being pursued with AI and automation? - Management highlighted a partnership with Nvidia to deploy modular infrastructure for data centers and emphasized ongoing efforts to enhance factory efficiency through AI and robotics [76][80]

Core Insights - Flex Ltd. reported lower profit in its second quarter but exceeded market estimates, and it raised its fiscal 2025 forecast above Wall Street expectations [1][4] Group 1: Second Quarter Performance - The company's net income for the second quarter was $199 million, or $0.52 per share, compared to $214 million, or $0.54 per share, in the previous year [4] - Adjusted earnings for the period were $300 million, or $0.79 per share, up from $255 million, or $0.64 per share, a year ago, surpassing analysts' expectations of $0.76 per share [4] - Net sales increased by 4 percent to $6.804 billion from $6.545 billion last year, exceeding the Street's expectation of $6.71 billion [5] Group 2: Third Quarter Outlook - For the third quarter, the company projects adjusted earnings per share between $0.74 and $0.80, adjusted operating income of $405 million to $435 million, and net sales of $6.65 billion to $6.95 billion [2] - Wall Street analysts expect earnings of $0.77 per share on net sales of $6.73 billion [2] Group 3: Fiscal 2025 Forecast - The company now projects adjusted earnings per share for fiscal 2025 to be between $3.09 and $3.17, with adjusted operating margins between 6.2 percent and 6.3 percent, and net sales of $26.7 billion to $27.3 billion [3] - Previously, the company expected adjusted earnings per share of $2.86 to $3.06 and net sales of $25.9 billion to $27.1 billion [3] - Analysts anticipate earnings of $3.04 per share on net sales of $26.71 billion for the year [3] Group 4: Factors Influencing Outlook - The revision in outlook is attributed to strong demand in data centers within the Power and Cloud businesses and continued disciplined execution [4]

Core Insights - 10x Genomics has launched a next-generation high-performance Flex assay that features automation-compatible plate-based multiplexing, enabling cost-effective and scalable single-cell analysis for a variety of research applications [1][2][3] Group 1: Product Features - The new Flex assay allows researchers to profile up to 384 samples and 100 million cells per week using a 96-well plate format, integrating seamlessly with automated cell partitioning for reliable results [2] - Built on proven Flex chemistry, the assay offers exceptional sensitivity and sequencing efficiency, supporting modular usage and reducing reagent waste, thus delivering more data at a lower cost [2][3] - The assay enables the profiling of millions of cells at a fraction of the cost compared to traditional methods, significantly enhancing the ability to explore functional immune responses [4] Group 2: Market Impact - The advancements in scalability and ease of use are expected to unlock more research opportunities, allowing for more samples, conditions, and insights at reduced costs [3] - The new Flex assay is positioned as a transformative tool for large-scale foundational and translational studies, as well as routine single-cell applications [3] - Early access customers have already begun utilizing the new Flex assay across various discovery and translational research programs, indicating strong market interest [3][4] Group 3: Company Overview - 10x Genomics is a life science technology company focused on products that accelerate biological research and advance human health, with solutions that include instruments, consumables, and software for single-cell and spatial biology [5] - The company's products have contributed to breakthroughs in various fields, including oncology, immunology, and neuroscience, enhancing the understanding of health and disease [5]

Q2 FY26 Earnings Presentation Quarter End: September 26, 2025 Earnings Announcement: October 29, 2025 Risks and non-GAAP disclosures 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 assumpt ...

Financial Performance - Reported net sales for Q2 FY 2026 reached $6.8 billion, a 4% increase year-over-year[5] - GAAP operating margin was 4.4%, while adjusted operating margin improved to 6.0%, marking the fourth consecutive quarter above 6%[5] - Adjusted EPS for Q2 FY 2026 was a record $0.79, compared to $0.64 in the same quarter last year[6] - GAAP net income for Q2 FY 2026 was $199 million, down from $214 million in Q2 FY 2025[14] - GAAP operating income for the six-month period ended September 26, 2025, was $607 million, representing a margin of 4.5%, compared to $530 million and 4.1% for the same period in 2024[20] - Non-GAAP operating income increased to $804 million with a margin of 6.0%, up from $664 million and 5.2% year-over-year[20] - GAAP net income rose to $391 million, compared to $353 million in the prior year, while non-GAAP net income increased to $574 million from $466 million[20] - Diluted earnings per share (EPS) for GAAP was $1.03, up from $0.87, and non-GAAP EPS was $1.51, compared to $1.15 in the previous year[20] Cash Flow and Assets - Free cash flow for Q2 FY 2026 was $305 million, up from $219 million in the prior year[18] - Cash provided by operating activities was $453 million, compared to $319 million in the same quarter last year[18] - Free cash flow for the six-month period was $573 million, an increase from $451 million year-over-year[20] - Total current assets increased to $13,842 million as of September 26, 2025, from $12,841 million as of March 31, 2025[23] - Total assets grew to $19,546 million, up from $18,381 million[23] - Total liabilities increased to $14,511 million, compared to $13,379 million in the previous period[23] - The Company reported free cash inflow of $305 million and $573 million for the three and six-month periods ended September 26, 2025, respectively[40] - In comparison, for the same periods ended September 27, 2024, the Company recognized free cash inflow of $219 million and $451 million, respectively, indicating a year-over-year increase[40] - Free cash flow is defined as cash flows from operating activities minus net capital expenditures, providing a consistent measure for investors[39] Guidance and Projections - The company raised full-year net sales guidance to a range of $26.7 billion to $27.3 billion, reflecting strong demand in data center operations[10] - The company expects adjusted EPS for the full year to be between $3.09 and $3.17[10] - Interest and other expenses are projected to be approximately $180 million to $190 million for the full year[10] Operational Challenges - The company recognized approximately $41 million in asset impairments due to a missile strike on its Mukachevo, Ukraine operations[32] - Restructuring charges for the six-month period were approximately $74 million, compared to $42 million in the same period last year[20] Tax Benefits - For the three and six-month periods ended September 26, 2025, the Company recognized a net tax benefit of $17 million and $36 million, respectively[38] - The Company recognized a net tax benefit of $19 million and $20 million for the three and six-month periods ended September 27, 2024, respectively[38] Strategic Focus - The company continues to focus on higher margin businesses and integrated solutions for data centers amid the AI era[3]

Core Insights - Flex achieved record results in Q2 of fiscal year 2026, demonstrating disciplined execution and value delivery across business segments [2] - The company is shifting its portfolio towards higher margin businesses, particularly in data center solutions, to support leading technology companies in the AI era [2] Financial Performance - Reported net sales increased by 4% to $6.8 billion, at the top end of guidance [7] - GAAP operating margin was 4.4%, while adjusted operating margin reached 6.0%, marking the fourth consecutive quarter above 6% [7] - GAAP EPS was $0.52, which included $41 million in costs from missile strike damage at the Ukraine facility; adjusted EPS reached a record $0.79 [7] - Cash provided by operating activities was $453 million, with free cash flow of $305 million [7][29] Guidance - The company raised its full-year net sales guidance to a range of $26.7 billion to $27.3 billion, with adjusted operating margin between 6.2% and 6.3% [7] - Adjusted EPS guidance for the full year is set between $3.09 and $3.17 [7] Operational Highlights - Flex is enhancing its capabilities in data center deployment, addressing power, heat, and scale challenges through advanced technology [5] - The company operates in 30 countries, providing comprehensive manufacturing and supply chain solutions [5] Recent Events - The company faced a significant impact from a missile strike on its Ukraine facility, leading to asset impairments and operational disruptions [22]

Core Insights - Flex is collaborating with NVIDIA to develop modular data center systems, focusing on high-performance and energy-efficient AI factories to meet increasing infrastructure demands in the U.S. [1][2] Group 1: Collaboration Details - The partnership aims to address the challenges faced by data center operators, such as power, heat, and scale constraints in the AI era [2] - Flex will utilize its advanced manufacturing capabilities and systems integration expertise alongside NVIDIA's AI-driven platform to enhance data center infrastructure rapidly [2] - The collaboration includes deploying NVIDIA cuOpt for capacity planning and process optimization, utilizing digital twins to streamline logistics across Flex's global network [3] Group 2: Manufacturing Capabilities - Flex's global manufacturing footprint has expanded, including a new 400,000 sq. ft. facility in Dallas specifically designed for data center infrastructure, which will reduce lead times for U.S. customers [2] - The company offers a unique portfolio of rack integration capabilities, grid-to-chip power, and cooling products, along with end-to-end services [2] Group 3: Industry Leadership - This initiative builds on Flex's established leadership in both the data center and automotive industries, including a collaboration with NVIDIA to develop 800 VDC data center power infrastructure for megawatt-scale racks [4] - In the automotive sector, Flex is integrating NVIDIA DRIVE AGX Orin systems-on-a-chip into its Jupiter design platform, which has been recognized with a 2025 Automotive News PACE Award [4]

Core Points - Seahawk Ventures Inc. has terminated its share exchange agreements with Alluvial Capital Corp. and FlexGPU Inc. due to the passing of Keith Talbot, a founder of both entities [1][2] - The company plans to refocus on its exploration portfolio, specifically its four gold properties located along the Urban-Barry Greenstone Belt in Quebec [3] - Seahawk intends to change its name back to "Seahawk Gold Corp." and is planning a non-brokered financing to raise up to $2 million through the sale of up to 5 million units at a price of $0.40 per unit [4][5] Financing Details - Each unit in the financing will consist of one common share and one half of a share purchase warrant, with each whole warrant allowing the purchase of an additional common share at $0.80 for one year [5] - The financing proceeds will be allocated for exploration activities, reviewing additional mineral property acquisition opportunities, and general working capital [6] Company Overview - Seahawk Gold Corp. is a publicly traded Canadian resource exploration company, fully owning four properties along the Urban-Barry Greenstone Belt in Quebec [7]

Core Insights - Flex has received Excellence Awards from the Association for Manufacturing Excellence (AME) for its sites in Manaus, Brazil, and Guadalajara, Mexico, showcasing its global leadership in operational excellence and continuous improvement [1][2]. Group 1: Awards and Recognition - The total number of Flex sites honored by AME has reached six, with previous awards given to locations in Tczew, Poland; Jaguariúna, Brazil; Pelabuhan Tanjung Pelepas, Malaysia; and Zhuhai, China [2]. - To qualify for the AME award, facilities must demonstrate best-in-class manufacturing performance through a comprehensive plant profile submission, a lean assessment, and an on-site evaluation [2]. Group 2: Operational Excellence - The Manaus facility is recognized for its advanced use of information systems that enhance operational efficiency and its commitment to sustainable manufacturing, serving multiple markets including industrial, lifestyle, consumer, and communications [3]. - The Guadalajara plastics operations are acknowledged for their strong people-first culture and advanced problem-solving capabilities, specializing in advanced injection molding and semi-automated assembly [4]. Group 3: Company Commitment - Flex's ongoing recognition by AME underscores its long-term commitment to operational excellence, continuous improvement, and its role as an advanced manufacturing solutions partner [5].