FLEX REPORTS SECOND QUARTER FISCAL 2026 RESULTS

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]