FL

Flex Ltd. stock research

Sep 26, 2025

FY2026 Q2

Flex (FLEX) Gross Margin — Quarter Ended Sep 26, 2025

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than cost of revenue, leading to an improvement in gross margin.

Gross margin takeaway

Quarter ended Sep 26, 2025 · FY2026 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than cost of revenue, leading to an improvement in gross margin.

  • Gross margin improved both sequentially and year-over-year, reflecting a stronger contribution from gross profit relative to revenue.
  • Compared with the immediate preceding quarter, gross margin was higher. Year-over-year, gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

9.0%

Gross profit

$614.0M

Revenue

$6.8B

Cost of revenue

$6.2B

Quarter-over-quarter change

+0.3 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 27, 2024$6.5B$531.0M$6.0B8.1%
Dec 31, 2024$6.6B$594.0M$6.0B9.1%
Jun 27, 2025$6.6B$572.0M$6.0B8.7%
Sep 26, 2025$6.8B$614.0M$6.2B9.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 27, 2025

+0.3 pts

Year-over-year change

Sep 27, 2024

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin improved both sequentially and year-over-year, reflecting a stronger contribution from gross profit relative to revenue.

Compared with the immediate preceding quarter, gross margin was higher. Year-over-year, gross margin also improved.

Monitor the financial impact of asset impairments and inventory write-downs related to the Ukraine facility, as disclosed in the filing.