Slides for today's call, as well as a copy of the earnings press release, are available on the Investor Relations section at flex.com. Please note, all growth metrics will be on a year-over-year basis unless stated otherwise. Starting on slide four, Flex just wrapped up an exceptional quarter delivering positive results against our guidance. Our adjusted operating margin was 6%, and we delivered adjusted EPS of $0.72, a record Q1 number for Flex.
Our great start to fiscal year 2026 gives us improved confidence in our ability to hit our fiscal year commitments, which has been reflected in our improved FY26 guidance. What makes this business truly compelling isn't just the size or the growth; it's the architecture and integration behind it. They need to cool it, and they need to deploy it quickly. These capabilities are critical not only in data center, but also across our other end markets, including automotive, healthcare, industrials, and more, which account for 75% of total Flex revenue.
America's revenue for us rose to 49% in fiscal year 2025, up from 38% in fiscal year 2020, while Asia declined to 30%, down from 41% over the same period. First quarter revenue came in at $6.6 billion, up 4%, driven by strong data center growth across both cloud and power end markets. Gross profit totaled $596 million, and gross margin improved to 9.1%, up 130 basis points. Operating profit was $395 million, with operating margins at 6%, up 120 basis points.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2026 | $25.9 billion to $27.1 billion (midpoint raised by approximately $600 million) |
| Adjusted operating margin | FY2026 | 6% to 6.1% (held) |
| Adjusted EPS | FY2026 | $2.86 to $3.06 (midpoint raised by approximately $0.05) |
| Revenue | Q2 FY2026 | $6.5 billion to $6.8 billion |
| Adjusted operating income | Q2 FY2026 | $375 million to $415 million |
| Adjusted EPS | Q2 FY2026 | $0.70 to $0.78 |
| Data center revenue | FY2026 | approximately $6.5 billion, growing at least 35% and representing 25% of total revenue |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | up 4% | Strong data center growth across both cloud and power end markets. |
| Reliability Solutions revenue | down 2% | Continued macro-related pressure in automotive and renewables, partially offset by strength in power. |
| Agility Solutions revenue | up 10% | Robust cloud and AI demand more than offset continued softness in traditional telecom and consumer-facing end markets. |
| Adjusted EPS | up more than 40% | Margin expansion and strong execution; a record Q1 for Flex. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center business | no full-year fiscal forecast previously given | first full-year data center forecast: at least 35% growth, ~$6.5 billion, 25% of revenue | Increasing strategic contribution |
| Tariffs in guidance | direct tariff impact not incorporated into revenue guidance | tariff impact incorporated into revenue guidance | Newly incorporated as pass-through |
| Regionalization of footprint | Americas revenue 38% in FY2020, Asia 41% | Americas revenue 49% in FY2025, Asia 30% | Shifting toward the americas |