Flex (FLEX) Stock Forecast & Price Target

Flex Ltd. is anticipated to experience significant growth in its Agility segment, with quarter-over-quarter and year-over-year revenue projections indicating low single-digit to mid-single-digit increases. The company has also improved its financial outlook for FY26, raising revenue and adjusted EPS guidance to midpoints of $26.5 billion, supported by strong performance in the Data Center business, particularly in power and cloud markets. Additionally, Flex's strategic refinancing efforts have resulted in the highest cash balance in its history, totaling $478.7 million, further enhancing its financial stability.

Flex Ltd is facing significant headwinds in its Reliability Solutions segment, with management projecting sequential revenue variability and guidance indicating potential declines in FY26 revenues. The company's recent financial performance also reflects a miss in key metrics, including revenues of $82.0 million and adjusted EBITDA of $61.2 million, both falling short of estimates. Additionally, broader investment risks, such as lack of revenue visibility, pricing pressure in the electronics outsourcing sector, and the potential loss of a significant customer, further contribute to a negative outlook for Flex's stock.