Flex Reports Margin-Led Q3 Gains, Raises Fiscal 2026 Guidance

Flex posts margin-led operational gains

Flex reports stronger-than-expected fiscal third-quarter results, driven by broad-based demand and operational leverage across its manufacturing services. For the period ended Dec. 31, 2025, the company posts net sales of $7.1 billion, up 8% year‑over‑year, with GAAP operating income of $389 million and GAAP net income of $239 million. Cash provided by operating activities is $420 million, while free cash flow comes in at $275 million. On a non‑GAAP basis Flex delivers adjusted operating income of $460 million, adjusted net income of $326 million and a record adjusted EPS of $0.87. The firm records a GAAP operating margin of 5.5% and a record adjusted operating margin of 6.5%, marking a fifth consecutive quarter with adjusted margins at or above 6%.

Management raises full‑year guidance as operational momentum continues into the fourth quarter. Flex updates fiscal 2026 net sales to $27.2 billion–$27.5 billion from a prior $26.7 billion–$27.3 billion range, sets an adjusted operating margin target of 6.3% and raises adjusted EPS to $3.21–$3.27. For the fourth quarter the company guides net sales of $6.75 billion–$7.05 billion (roughly 8% growth at the midpoint), adjusted operating income of $445 million–$475 million and adjusted EPS of $0.83–$0.89, with an adjusted tax rate of about 21% and approximately 375 million diluted shares outstanding. The company notes reconciliations of GAAP to non‑GAAP measures in its press release schedules.

CEO Revathi Advaithi frames the outperformance as validation of Flex’s diversified business model and manufacturing footprint, highlighting strength in sectors including Data Center and other enterprise applications. Management says the company exceeds guidance across operating and cash metrics and emphasizes its role as a strategic enabler for customers navigating complex product and supply‑chain requirements. A webcast and conference call accompany the release as Flex outlines operational priorities and execution plans going into the year‑end quarter.

ETCO launches stamped flex circuit connectors

Separately, ETCO Incorporated introduces ETCO Flex Circuit Connectors, a stamped‑metal family designed to attach wires to flexible laminates that must bend or fit into tight spaces for consumer, medical, aerospace and military programs. The TFC and FWC series address thin film and foil laminates, are supplied in continuous strip form for automated insertion and crimping, and emphasize fast prototyping, production support and traceability options.

Industry note — connector advances align with EMS needs

Innovations in flex circuit connectors and automated strip supply align with trends in electronics manufacturing services where Flex operates, supporting higher throughput, lower per‑piece cost and stricter traceability for OEMs. Suppliers that reduce assembly time and enable automated processes complement contract manufacturers’ push for margin expansion and supply‑chain resilience.