FLEX: Record adjusted EPS and 25% revenue growth; CPI strength lifts FY27 outlook

What happened

Flex reported second-quarter revenue growth of 25% and a record adjusted EPS of $1.18. The company raised its FY27 guidance, citing rapid CPI growth and the EPC acquisition, while supply constraints and spin-related costs remain in focus.

Confirmed

Global impact / market context

Higher revenue and record adjusted profit per share suggest Flex is selling more and keeping more profit per sale, which can support the stock. Raised guidance signals management expects the strength to continue, though supply constraints and spin-related costs could limit how much of that flows to profit.

Analyst inference

The article ties the improved outlook to rapid CPI growth and the EPC acquisition, meaning demand trends and acquired business are driving expected expansion. For investors, the key tension is whether growth outpaces supply constraints and spin-related costs, which affect expenses and cash available.

Analyst inference

What to watch

1. Watch whether supply constraints ease, since the article names them as a remaining focus and they can delay revenue and raise costs. Confirmed
2. Monitor spin-related costs in coming reports, as separating a business can add one-time expenses and reduce cash available. Proposed
3. Track whether rapid CPI growth and the EPC acquisition keep supporting revenue, since guidance depends on that expansion continuing. Analyst inference

Evidence

• Original source link unavailable