Flex Ltd (FLEX) shares tumbled 5.80% in pre-market trading on Wednesday, despite the company reporting better-than-expected second-quarter results and raising its full-year guidance. The sharp decline suggests investors may be looking beyond the headline numbers and focusing on potential headwinds for the contract electronics manufacturer.

For the second quarter of fiscal 2026, Flex reported adjusted earnings per share of $0.79, surpassing the FactSet consensus estimate of $0.75. Revenue came in at $6.80 billion, also beating analysts' expectations of $6.68 billion. The company's performance was driven by strong demand in its Power and Cloud businesses, particularly in the data center segment.

Despite the positive results, investors appear concerned about future growth and potential challenges. Flex raised its fiscal 2026 guidance, now expecting adjusted earnings per share between $3.09 and $3.17, up from the previous range of $2.86 to $3.06. However, the market's negative reaction might indicate worries about the sustainability of this growth or potential margin pressures in the coming quarters. Additionally, the company reported $41 million in costs related to missile strike damage at its Ukraine facility, highlighting geopolitical risks that could impact operations. As the market digests these mixed signals, Flex's stock price may continue to experience volatility in the near term.