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 assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ mate ...

Core Insights - Flex Ltd. is experiencing growth momentum with increased AI investments, strong customer relationships, and disciplined financial management as it enters the second half of fiscal 2026 [1] - The company is focused on long-term value creation despite facing challenges such as tariff tensions and forex headwinds [1] Financial Performance - Flex reported a record $1.1 billion in free cash flow for fiscal 2025 and generated $305 million in adjusted free cash flow in the second quarter of fiscal 2026 [2] - The company aims for over 80% free cash flow conversion, supporting share repurchases, debt reduction, and continued investments [2] - In fiscal 2025, Flex repurchased $1.3 billion worth of stock, with $297 million repurchased in the second quarter of fiscal 2026 [2] Business Segments and Growth Outlook - Flex is advancing its data center portfolio with next-generation AI power, compute, and cooling solutions, showing solid growth in Medical Devices, Optical, and Satcom [3] - The company expects data center revenues to grow at least 35% this year, with balanced growth projected for fiscal 2026 across its segments [4] - The Reliability segment is expected to deliver low- to mid-single-digit growth, while the Agility segment is projected to grow at a mid- to high-single-digit rate [4] Competitive Landscape - Flex faces intense competition from EMS peers like Jabil Inc. and Sanmina Corporation, which may impact contract wins and revenue growth [4] - Jabil is diversifying its business and expanding in healthcare and cloud sectors, while Sanmina's diverse market presence strengthens its resilience [5][6] Market Performance and Valuation - Flex shares have gained 78% over the past year, outperforming the Electronics - Miscellaneous Products industry, which grew by 24.7% [9] - The company trades at a forward 12-month price-to-earnings (P/E) ratio of 22.04, below the industry's 24.76 [10] - The Zacks Consensus Estimate for Flex's earnings for fiscal 2026 has been revised upward over the past 60 days [11]