Flex (FLEX) Stock Forecast & Price Target

Flex Ltd is experiencing positive momentum in its Agility Solutions segment, with management guiding for quarterly and year-over-year revenue growth in the low to mid-single digits for F2Q26. The company's strengthened financial position is reflected in a record cash balance of $478.7 million, bolstered by successful refinancings. Additionally, growth in the Data Center business, particularly in power and cloud markets, contributes to an optimistic outlook for fiscal year 2026, with raised revenue and adjusted EPS guidance to midpoints of $26.5 billion.

Flex Ltd's outlook for its Reliability segment forecasts sequential revenue variability, with expected FY26 revenues projected to be down low single digits to up mid-single digits year-over-year, indicating underlying fragility. The company's recent financial performance shows revenues of $82.0 million and adjusted EBITDA of $61.2 million, both falling short of estimates, reflecting broader economic challenges and pressures within the electronics market. Additionally, identified investment risks, including a lack of revenue visibility, pricing pressures, and the potential loss of a key customer, contribute to a concerning long-term growth outlook for the company.