Flex (FLEX) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue reached $6.6 billion, with record adjusted operating margin above 6% and adjusted EPS of $0.77, driven by improved business mix, efficiency, and strong demand in data center and medical devices.

• Data center business grew 45% year-over-year, supported by AI/cloud transformation and robust hyperscale demand.

• Medical device demand remained strong, with long-term opportunities in med tech and recent wins in drug delivery technologies.

• Automotive segment faced near-term softness due to inventory correction and macro challenges, but long-term technology trends remain positive.

• Completed JetCool and Crown Systems acquisitions, enhancing the data center technology portfolio and expanding grid modernization opportunities.

Financial highlights

• Q3 FY2025 adjusted operating income was $399 million (6.1% margin), with GAAP operating income at $334 million.

• Adjusted gross profit reached $610 million (9.3% margin), and GAAP gross profit was $594 million (9.1% margin).

• Adjusted EPS was $0.77, up from $0.54 year-over-year; GAAP EPS was $0.67, up from $0.30.

• Free cash flow for the quarter was $306 million; year-to-date free cash flow totaled $757 million.

• Cash and cash equivalents at quarter-end were $2.3 billion.

Outlook and guidance

• Q4 FY2025 revenue expected between $6.0–$6.4 billion, with adjusted operating income of $360–$400 million and adjusted EPS of $0.65–$0.73.

• FY2025 revenue guidance set at $25.4–$25.8 billion, with adjusted operating margin of 5.6%–5.7% and adjusted EPS of $2.57–$2.65.

• Data center business expected to maintain 40%+ growth next quarter, with long-term CAGR guidance of 20%.

• Management expects current liquidity and financial condition to be adequate for future commitments.