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. We remain bullish in our outlook and continue to expect our data center revenue to grow at least 35% this year. Sustaining this level of growth at our scale validates the value we're delivering to the world's leading technology companies and the strength of our execution in a dynamic market.
We are outperforming industry growth rates and continuing to strategically shift our portfolio towards higher margin, critical technology-driven businesses shaping today's market evolution. Our data center offerings span from the grid to chip, combining our product portfolio with advanced manufacturing capabilities and global scale to meet unprecedented demand for performance and efficiency. The platform helps data center operators deploy up to 30% faster, reduce execution risk, and scale reliably. To meet the pace of AI demand, we partnered with Nvidia as part of their ecosystem on next gen 800V DC AI factories.
The data center opportunity continues to expand and we're executing remarkably well as we support our customers through this next wave of growth. In health solutions, we see steady medical device demand and anticipate improvement in medical equipment later this year. In the first half of FY2026, we added compute deals with new logos, validating our continued investment and focus on software defined vehicles. Despite this backdrop, we've been able to exceed our expectations and raise our guidance.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2026 | $26.7 billion to $27.3 billion (midpoint raised by $500 million) |
| Adjusted operating margin | FY2026 | 6.2% to 6.3% (raised) |
| Adjusted EPS | FY2026 | $3.09 to $3.17 (midpoint raised by $0.17) |
| Revenue | Q3 FY2026 | $6.65 billion to $6.95 billion |
| Adjusted operating income | Q3 FY2026 | $405 million to $435 million |
| Adjusted EPS | Q3 FY2026 | $0.74 to $0.80 |
| Data center revenue growth | FY2026 | at least 35% (unchanged) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | up 4% | Strong data center growth across both power and cloud. |
| Reliability revenue | up 3% | Strong growth in power and moderate growth in health solutions and core industrial, slightly offset by continued pressure in auto. |
| Agility revenue | up 4% | Robust cloud demand more than offset softness in communications and consumer end markets. |
| Adjusted EPS | up 23% | Strength of the model anchored in disciplined execution and a continued shift toward higher-value technology-driven businesses. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Operating margin consistency | at or above 6% in prior quarters | fourth consecutive quarter at or above 6% | Sustained above 6% |
| Data center economics | described as margin accretive | increasingly margin accretive as power and own-IP products grow, behaving more like a products/OEM business | Improving margin mix |
| Ukraine operations | facility operating normally | Mukachevo facility damaged by missile strike, operations temporarily halted | Near-term headwind, focused on rebuilding |
| Back-half growth | — | acceleration expected in Q4 driven by power and cloud demand | Accelerating into year-end |