Flex Ltd. stock research
FY2026 Q3
Flex (FLEX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to both periods, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q3
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to both periods, indicating that gross profit grew faster than cost of revenue.
- The improvement in gross margin was driven by gross profit increasing at a higher rate than cost of revenue when compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, gross profit, and gross margin were higher, while cost of revenue also increased. Versus the same quarter last year, all metrics were higher, with gross margin showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.6%
Gross profit
$679.0M
Revenue
$7.1B
Cost of revenue
$6.4B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $6.6B | $594.0M | $6.0B | 9.1% |
| Jun 27, 2025 | $6.6B | $572.0M | $6.0B | 8.7% |
| Sep 26, 2025 | $6.8B | $614.0M | $6.2B | 9.0% |
| Dec 31, 2025 | $7.1B | $679.0M | $6.4B | 9.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 26, 2025
+0.6 pts
Year-over-year change
Dec 31, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit increasing at a higher rate than cost of revenue when compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, gross profit, and gross margin were higher, while cost of revenue also increased. Versus the same quarter last year, all metrics were higher, with gross margin showing improvement.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences gross margin sustainability.