Does Flex's Raised Outlook and M&A Push Reframe the Bull Case for FLEX?

• Earlier in February 2026, Flex Ltd. reported third-quarter fiscal 2026 results showing year-on-year sales growth to US$7.06 billion, modestly lower net income of US$239 million, and slightly reduced diluted EPS, while also lifting full-year revenue guidance and issuing upbeat fourth-quarter sales expectations.
• Alongside these results, management reaffirmed its focus on maintaining an investment‑grade balance sheet while pursuing accretive M&A and opportunistic share repurchases, signalling an intent to balance growth initiatives with shareholder returns.
• With Flex pairing raised full‑year sales guidance and active M&A ambitions, we’ll explore how these developments influence its investment narrative.

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What Is Flex's Investment Narrative?

To own Flex today, you need to believe it can convert its broad manufacturing footprint and AI / data‑center exposure into steadier, higher‑margin earnings, not just headline revenue growth. The latest quarter did little to change that core question: sales moved higher but net income and EPS softened, reminding you how tight Flex’s 3% profit margin still is. What does feel more impactful is the raised full‑year revenue outlook and upbeat fourth‑quarter guidance, which keep near‑term growth catalysts alive, especially around AI infrastructure and complex manufacturing programs. At the same time, management’s reaffirmed appetite for accretive M&A and ongoing buybacks adds another layer of execution risk on top of already volatile earnings. The stock’s very large multi‑year return only raises the bar for what comes next.

However, Flex’s thin margins and active M&A plans bring risks investors should not ignore. Flex's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

Five Simply Wall St Community fair value estimates span roughly US$63 to US$78 per share, underlining how differently people view Flex. Set that against the recent guidance raise and active M&A stance, and you can see why it pays to weigh several viewpoints before deciding how resilient the story really is.

Explore 5 other fair value estimates on Flex - why the stock might be worth as much as 22% more than the current price!

Build Your Own Flex Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Flex research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Flex research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flex's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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