Core Insights - Flex reported third-quarter fiscal 2026 results that exceeded guidance across all metrics, driven by strong demand in data center-related sectors and improving momentum in industrial and health markets [1] - The company raised its full-year revenue and earnings outlook, expecting to exit the fiscal year with "very good momentum" [1] Financial Performance - Flex delivered revenue of $7.1 billion for the quarter, representing an 8% year-over-year increase [1] - Adjusted operating margin was 6.5%, maintaining above 6% for another quarter, while adjusted earnings per share rose 13% to $0.87, marking a record for the company [1] - Adjusted gross profit reached $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year over year [2] - Adjusted operating profit was $460 million, with adjusted operating margin expanding 40 basis points to 6.5%, reflecting cost discipline and a shift towards higher-value products and services [2] Data Center Strategy - CEO Revathi Advaithi highlighted that data center growth is driven by expanding compute and AI workloads, advocating for a systems-level approach due to deployment complexity [3] - Flex's data center portfolio focuses on three interconnected capabilities: computer integration, cooling, and power [3] - The company plans to invest more in compute capacity over the next few years as additional AI programs are launched, with ongoing capacity additions viewed as a cycle of investment [3] Partnerships and Innovations - Flex is developing modular data center systems in collaboration with NVIDIA to enhance deployment speed and scale [5] - A partnership with LG aims to advance thermal management solutions for gigawatt-scale data centers [5] - The company is deploying a rack-level, vertically integrated liquid cooling solution at the Equinix co-innovation facility [5] - An AI infrastructure platform has been introduced, described as the first globally manufactured data center platform integrating power, cooling, compute, and services into a modular design, potentially accelerating deployment timelines by up to 30% [5]