Flex(US:FLEX)2025-07-24 12:23Financial Performance - Flex reported net sales of $6.575 billion for the first quarter of fiscal year 2026, an increase from $6.314 billion in the same period last year, representing a growth of approximately 4.2%[16] - The company achieved a GAAP operating income of $311 million, up from $233 million year-over-year, reflecting a growth of about 33.5%[16] - Adjusted net income for the quarter was $274 million, compared to $211 million in the prior year, marking a year-over-year increase of approximately 29.8%[18] - Flex's GAAP earnings per share (EPS) for the quarter was $0.50, an increase from $0.34 in the same quarter last year, representing a growth of approximately 47.1%[16] - The company updated its fiscal year 2026 revenue guidance to a range of $25.9 billion to $27.1 billion, with adjusted EPS guidance of $2.86 to $3.06[9] Cash and Assets - Cash and cash equivalents at the end of the quarter were $2.239 billion, a slight decrease from $2.289 billion at the beginning of the period[22] - Flex's total assets increased to $19.132 billion as of June 27, 2025, compared to $18.381 billion as of March 31, 2025[21] - The company reported a net cash provided by operating activities of $399 million for the quarter, compared to $340 million in the same period last year, indicating a growth of approximately 17.4%[22] - Flex's total liabilities increased to $14.043 billion, up from $13.379 billion at the end of the previous quarter[21] Strategic Focus - The company emphasized its strategic focus on high-growth end-markets such as data centers and power, which contributed to its strong performance in the first quarter[5] Restructuring and Costs - The company recognized approximately $23 million and $25 million in restructuring charges during the three-month periods ended June 27, 2025, and June 28, 2024, respectively, primarily related to employee severance[28] - In the first quarter of fiscal year 2026, the company accrued $6 million related to acquisition costs, while no such costs were incurred in the first quarter of fiscal year 2025[29] - The company reported approximately $17 million in equity losses from a reduced valuation of a non-core investment fund in the first quarter of fiscal year 2026, with no similar event in the first quarter of fiscal year 2025[30] Tax and Non-GAAP Measures - During the three-month periods ended June 27, 2025, and June 28, 2024, the company recognized a net tax benefit of $19 million and $1 million, respectively, related to the tax effects of various adjustments incorporated into non-GAAP measures[32] - The company uses non-GAAP measures to evaluate operating performance, which excludes stock-based compensation, intangible amortization, restructuring charges, and other non-recurring costs[1] - Non-GAAP measures are intended to provide a clearer view of the company's ongoing operational performance and facilitate comparisons with competitors[1] - The company adopted an annual normalized tax rate for fiscal year 2026 to determine the tax effect of non-GAAP adjustments, considering the mix of earnings across tax jurisdictions[31] - The exclusion of restructuring charges and legal costs from non-GAAP measures is aimed at providing a more accurate assessment of the company's core business performance[27] - The company believes that non-GAAP measures help investors understand the specific impacts of certain expenses on operating results[1] - Management's incentive compensation is determined using certain non-GAAP measures, highlighting their importance in internal assessments[1]