Flex Ltd (FLEX) is set to report third-quarter fiscal 2025 results on Jan. 29. The Zacks Consensus Estimate for revenues is $6.21 billion, down 12.6% YoY, and earnings are expected at 63 cents per share, down 11.3% YoY. Expectations for Q3 are revenues between $6-6.4 billion and adjusted earnings of 60-66 cents per share.

For Flex’s Q3 results, Reliability Solutions sales may see a decline due to automotive softness, while Agility Solutions revenues could be down due to weak networking and enterprise IT spending. Medical devices, cloud, and data center power segments are expected to show steady momentum.

Flex has benefited from program ramps in cloud, power, and auto sectors. Margin improvement is likely due to a favorable mix and operational execution. Recent acquisitions, including Crown Technical Systems and JetCool Technologies, have expanded Flex’s power portfolio and data center offerings.

The company’s performance is expected to be positively impacted by strategic programs focusing on cloud, power, and automotive businesses. Flex remains well-positioned for the industry’s AI-powered technology shift from grid to chip and cloud to the edge. Earnings beat expectations in the last 4 quarters, with a trailing average of 14.2%.

While our model doesn’t predict an earnings beat for Flex this time, other stocks like V.F. Corporation (VFC), Logitech International S.A. (LOGI), and ServiceNow, Inc. (NOW) have potential. VFC reports on Jan. 29, with estimates at 34 cents EPS and $2.75 billion revenue. LOGI and NOW are also anticipated to perform well in their upcoming reports.

Zacks Investment Research highlights a semiconductor stock poised for growth in the AI, Machine Learning, and IoT markets. With semiconductor manufacturing projected to grow from $452 billion in 2021 to $803 billion by 2028, this stock presents an opportunity for investors.

Read more at Nasdaq: Flex Set to Report Q3 Earnings: Here’s What You Should Know