Strong Q1 Performance: Flex reported a revenue of $6.6 billion for the first quarter of Fiscal 2026, up 4% year-over-year, with an adjusted EPS of $0.72, marking a record for Q1. The adjusted operating margin was at 6%, reflecting solid operational execution.

Data Center Growth Forecast: The company maintained an optimistic outlook for its data center business, projecting approximately $6.5 billion in revenue, growing at least 35% year-over-year. Both the cloud and power segments are expected to be strategic contributors, with power having a stronger performance due to a weaker comparative year in the previous fiscal year.

Guidance Adjustments: For FY '26, Flex updated its revenue guidance to a range of $25.9 billion to $27.1 billion, raising the midpoint by approximately $600 million. The adjusted EPS guidance is between $2.86 and $3.06, with a tax rate set at around 21%. However, the adjusted operating margin range remains stable at 6% to 6.1%, raising questions about margin leverage despite revenue growth.