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. So beginning on slide 4, we had another exceptional quarter, delivering results above our guidance across all metrics. Revenue came in at $7.1 billion, up 8% versus last year, and adjusted operating margin was 6.5%.
We reported adjusted EPS of $0.87, up 13%, and that was another record for Flex. The growth we're seeing in data centers is being driven by rapidly expanding compute and AI workloads, and those demands are here to stay. We also deployed our advanced rack-level, vertically integrated liquid cooling solution at the Equinix Co-innovation Facility, demonstrating these capabilities in real-world environments. While our data center business growth reflects where the industry is headed, that momentum extends across our diversified portfolio.
Flex remains a trusted global manufacturing partner across a wide range of industries as we continue to move into higher value, more complex product categories that also help drive margin improvement. In Health Solutions, demand for medical devices remains strong, and we saw an improvement in the medical equipment category. In core industrial, we're seeing demand in productivity-driven areas like warehouse automation and robotics, along with strength in select semiconductor-related capital equipment programs. Third quarter revenue came in at $7.1 billion, up 8% year-over-year, driven by continued strong performance in data center and improving momentum in our industrial and health solutions businesses.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2026 | $27.2 billion to $27.5 billion (midpoint raised by $350 million) |
| Adjusted operating margin | FY2026 | approximately 6.3% (roughly maintained) |
| Adjusted EPS | FY2026 | $3.21 to $3.27 (midpoint raised by $0.11) |
| Revenue | Q4 FY2026 | $6.75 billion to $7.05 billion |
| Adjusted operating income | Q4 FY2026 | $445 million to $475 million |
| Adjusted EPS | Q4 FY2026 | $0.83 to $0.89 |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | up 8% | Continued strong performance in data center and improving momentum in industrial and health solutions. |
| Reliability revenue | up 10% | Power continues to drive strong growth alongside core industrial and health solutions. |
| Agility revenue | up 6% | Data center-related end markets drove strong growth, partially offset by softness in consumer-related end markets. |
| Adjusted operating margin | up 40 basis points to 6.5% | Disciplined cost management and deliberate shift toward higher-value products and services; a record for Flex. |
| Adjusted EPS | up 13% | Strength in execution and margin expansion. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Operating margin trajectory | 6% target reached a year ahead of long-term guide | 6.5% record margin, guided to approximately 6.3% for the full year | Continued expansion via mix |
| Power investment cadence | power-heavy capacity investment this year | expect more compute capacity investment in coming years as AI programs come on board, with embedded power capacity added next year | Shifting investment mix |
| Networking outside data center | — | high-speed networking and NIC cards driving agility upside but not counted in data center numbers | Growing ai-adjacent contribution |
| Automotive | programs in flux across EV/hybrid/ICE | stabilizing with greater clarity on platforms; growth driven by software-defined compute platforms | Stabilizing |