Flex (FLEX) has just closed out FY 2026 with fourth quarter revenue of US$7.5b and basic EPS of US$0.67, set against trailing 12 month revenue of US$27.9b and EPS of US$2.37. Over recent quarters, the company has seen revenue move from US$6.4b in Q4 FY 2025 to US$7.5b in Q4 FY 2026. Quarterly EPS has ranged from US$0.51 to US$0.67, giving you a clear picture of the recent top line and per share earnings profile as a base case for the latest release. With trailing net profit margins around 3.2%, the focus now is on how efficiently Flex is converting that higher revenue into consistent profitability.

See our full analysis for Flex.

With the headline numbers on the table, the next step is to set these results against the main narratives around Flex to see which stories hold up and which might need a rethink.

EPS Trend Points To Gradual Step Up

• Basic EPS moved from US$0.51 in Q1 FY 2026 to US$0.67 in Q4, with trailing 12 month EPS at US$2.37, so recent quarters have been clustering in the mid US$0.50s to mid US$0.60s range.
• Bulls highlight that this earnings profile sits alongside forecasts for roughly 40.9% annual EPS growth, yet the trailing five year pace is about 1.2% per year, which means:
  • Recent one year earnings growth of around 5% is higher than that five year average, which supports the bullish view that momentum is improving but from a modest base.
  • The gap between the strong growth forecasts and the relatively moderate trailing growth rate is a key area for you to stress test if you lean toward the bullish narrative.

Bulls who see Flex as being on the verge of a stronger earnings phase point to these shifts and the forecast ramp as the start of a larger story. The full bullish case sets out how that could play out in detail 🐂 Flex Bull Case

Revenue Near US$28b With Thin Margins

• On a trailing 12 month basis, Flex has booked about US$27.9b of revenue and US$880 million of net income, which works out to a reported net margin of roughly 3.2%.
• Bears argue that thin margins leave little room for error, and the 3.2% net margin in the data aligns with that concern, but:
  • Forecasts still see revenue growing about 19.9% per year, which contrasts with the cautious view that supply chain shifts and higher costs will severely restrict future growth.
  • The bearish narrative also assumes margins can climb to around 5.5% over time, so the current 3.2% level is not inherently inconsistent with their own longer term margin expectations.

Skeptical investors who focus on these thin margins and cost pressures often reference a detailed bear case that lays out how those risks could affect future earnings and valuation 🐻 Flex Bear Case

High P/E And DCF Gap Create Tension

• The stock trades on a P/E of about 54.6x compared with a US Electronic industry average of 29.1x, yet it sits around 10.2% below a DCF fair value of roughly US$145.90 at a current share price of US$131.07.
• Consensus narrative points to strong growth and mix improvement, and the numbers reflect both sides of that story:
  • The high P/E relative to the industry lines up with the idea that the market is already pricing in faster earnings and revenue growth than the sector overall.
  • The DCF fair value sitting modestly above the current price suggests that, within the supplied data, valuation signals are mixed rather than clearly stretched in one direction.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Flex on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of optimism and concern running through these results, it is worth looking at the numbers yourself and deciding where you stand. To weigh both sides properly, start with the 3 key rewards and 2 important warning signs.

See What Else Is Out There

Flex combines thin net margins around 3.2% with a relatively high 54.6x P/E, creating a tension between profitability, growth expectations and current valuation.

If that mix of tight margins and a rich multiple makes you cautious, balance your watchlist by checking companies in the 66 resilient stocks with low risk scores that aim to keep risk in check.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.