Flex Ltd. stock research
FY2026 Q1
Flex (FLEX) Gross Margin — Quarter Ended Jun 27, 2025
Revenue and gross profit increased both sequentially and year-over-year, while cost of revenue also increased. Gross margin was slightly lower than the preceding quarter but higher than the same quarter last year.
Gross margin takeaway
Quarter ended Jun 27, 2025 · FY2026 Q1
Revenue and gross profit increased both sequentially and year-over-year, while cost of revenue also increased. Gross margin was slightly lower than the preceding quarter but higher than the same quarter last year.
- The year-over-year improvement in gross margin was primarily driven by revenue growing faster than cost of revenue compared to the same period last year. Sequentially, cost of revenue rose at a pace slightly exceeding revenue growth, leading to a marginal decline in margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.7%
Gross profit
$572.0M
Revenue
$6.6B
Cost of revenue
$6.0B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 28, 2024 | $6.3B | $471.0M | $5.8B | 7.5% |
| Sep 27, 2024 | $6.5B | $531.0M | $6.0B | 8.1% |
| Dec 31, 2024 | $6.6B | $594.0M | $6.0B | 9.1% |
| Jun 27, 2025 | $6.6B | $572.0M | $6.0B | 8.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.4 pts
Year-over-year change
Jun 28, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was primarily driven by revenue growing faster than cost of revenue compared to the same period last year. Sequentially, cost of revenue rose at a pace slightly exceeding revenue growth, leading to a marginal decline in margin.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Monitor whether the sequential increase in cost of revenue continues to outpace revenue growth in the coming quarters.