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FLEX REPORTS FIRST QUARTER FISCAL 2027 RESULTS

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Reported Q1 net sales of $7.9 billion, up 21% versus the prior year.Delivered Q1 GAAP operating margin of 4.9%, and adjusted operating margin of 6.7%.Reported Q1 GAAP EPS of $0.76, and record adjusted EPS of $1.00.Announced Investor Day date of November 10th, 2026.

AUSTIN, Texas, July 29, 2026 /PRNewswire/ — Flex (NASDAQ: FLEX) today announced results for its first quarter ended June 26, 2026.

“This quarter reflects the continued execution of the strategy we’ve advanced over the last several years. From joining the S&P 500 to expanding our role in AI infrastructure, we’ve strengthened our position in attractive growth markets. Looking ahead, we’re confident both Flex and SpinCo have the leadership, capabilities, and focus to capitalize on the significant opportunities in front of them,” said Revathi Advaithi, CEO of Flex.

First Quarter Fiscal Year 2027 GAAP Summary:

Net Sales: $7.9 billionGAAP Operating Income: $392 millionGAAP Net Income: $285 millionGAAP Earnings Per Share: $0.76Cash provided by Operating Activities: $276 million

First Quarter Fiscal Year 2027 Non-GAAP Summary:

Adjusted Operating Income: $534 millionAdjusted Net Income: $374 millionAdjusted Earnings Per Share: $1.00Free Cash Flow: $41 million

An explanation and reconciliation of GAAP financial measures to non-GAAP financial measures is presented in Schedules II and V attached to this press release.

Second Quarter Fiscal Year 2027 Guidance:

Net Sales: $7.95 billion to $8.25 billion, growth of 19% at the midpointAdjusted Operating Income: $535 million to $565 million*Adjusted EPS: $1.00 to $1.07*, growth of 32% at the midpointInterest & Other: approximately $58 millionAdjusted income tax rate: 21%*Weighted average shares outstanding: approximately 375 million

Updated Fiscal Year 2027 Guidance†:

Net Sales: $33.7 billion to $35.2 billion, growth of 23% at the midpointAdjusted Operating Margin: 7.0% to 7.2%*Adjusted EPS: $4.42 to $4.74*, growth of 39% at the midpointAdjusted income tax rate: 21%*

Fiscal Year 2027 Guidance

Prior

Updated

Net Sales

$32.3 – $33.8 billion

$33.7 – $35.2 billion

Adjusted Operating Margin*

7.0% – 7.1%

7.0% – 7.2%

Adjusted EPS*

$4.21 – $4.51

$4.42 – $4.74

*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort for the reasons set forth in Schedule V attached to this press release.

†Reflects expected results for the full fiscal year and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment

Webcast and Conference Call

The Flex management team will host a conference call today, July 29, 2026, at 7:30 AM (CT) / 8:30 AM (ET), to review first quarter fiscal 2027 results. A live webcast of the event and slides will be available on the Flex Investor Relations website at http://investors.flex.com. An audio replay and transcript will also be available after the event on the Flex Investor Relations website.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions.

Contacts

Investors & Analysts
Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
Michelle.Simmons@flex.com 

Media & Press
press@flex.com 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; risks related to our ability to successfully execute our strategic priorities, including the planned spin-off of our Cloud and Power Infrastructure segment into an independent, publicly traded company, and to achieve the anticipated benefits of such transaction, including risks that the spin-off may not be completed on the anticipated timeline or at all, that the spin-off may not achieve its intended benefits, that the transaction may have an adverse impact on existing business relationships, and that the costs of the spin-off may be greater than anticipated; the effects that the current and future macroeconomic environment, including inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates, could have on our business and demand for our products; geopolitical uncertainties and risks, including impacts from trade conflicts, the termination and renegotiation of international trade agreements and trade policies, a further escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, or the ongoing conflicts between Russia and Ukraine and in the Middle East, including recent developments in Iran, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, including those involving suppliers who are sole or primary sources, logistical constraints, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, including semiconductors, labor and energy; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers’ commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory and other issues which adversely affect our operating results; our dependence on a small number of customers; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits, including the acquisition of Electrical Power Products, Inc., and other events that could adversely impact the anticipated benefits of the acquisition, including industry or economic conditions outside of our control; our industry is extremely competitive; that the expected revenue and margins from recently launched programs may not be realized; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; the possibility that benefits of our restructuring actions may not materialize as expected; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and adversely affect our operations; hiring and retaining key personnel; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; litigation and regulatory investigations and proceedings; the impact and effects on our business, results of operations and financial condition of union disputes or other labor disruptions as well as unforeseen or catastrophic events; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement, misuse or breach of license agreements; physical and operational risks from natural disasters, severe weather events, or climate change; we may be exposed to product liability and product warranty liability; we may be exposed to financially troubled customers or suppliers; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our  business, including those related to trade policy and tariffs and climate change; our ability to  meet sustainability, including environmental, social and governance, expectations or standards or achieve sustainability goals.

SCHEDULE I

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share amounts)

Three-Month Periods Ended

June 26, 2026

June 27, 2025

GAAP:

   Net sales

$                 7,928

$                 6,575

   Cost of sales

7,177

5,987

   Restructuring charges

4

16

     Gross profit

747

572

   Selling, general and administrative expenses

334

233

   Restructuring and impairment charges (reversal)

(2)

7

   Intangible amortization

23

21

     Operating income

392

311

   Interest expense

60

51

   Interest income

13

13

   Other charges (income), net

(37)

7

   Equity in earnings (losses) of unconsolidated affiliates

(5)

(20)

     Income before income taxes

377

246

   Provision for income taxes

92

54

     Net income

$                   285

$                   192

GAAP EPS

   Diluted earnings per share

$                   0.76

$                  0.50

   Diluted shares used in computing per share amounts

374

381

See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying notes on Schedule V attached to this press release.

 

SCHEDULE II

FLEX

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share amounts and percentages)

Three-Month Periods Ended

June 26, 2026

June 27, 2025

GAAP operating income and margin %

$                 392

4.9 %

$                 311

4.7 %

      Intangible amortization

23

21

      Stock-based compensation

51

34

      Restructuring and impairment charges

1

23

      Legal and other

67

6

Non-GAAP operating income and margin %

$                 534

6.7 %

$                 395

6.0 %

GAAP provision for income taxes

$                  92

$                  54

      Intangible amortization benefit

5

5

      Other tax related adjustments

2

14

Non-GAAP provision for income taxes

$                  99

$                  73

GAAP net income

$                 285

$                 192

      Intangible amortization

23

21

      Stock-based compensation

51

34

      Restructuring and impairment charges

1

23

      Legal and other

67

6

      Equity in losses of unconsolidated affiliates

—

17

      Interest and other, net

(46)

—

      Adjustments for taxes

(7)

(19)

Non-GAAP net income

$                 374

$                 274

Diluted earnings per share:

   GAAP 

$                0.76

$                0.50

   Non-GAAP

$                1.00

$                0.72

Free Cash Flow:

      Net cash provided by operating activities

$                 276

$                 399

      Purchases of property and equipment

(236)

(133)

      Proceeds from the disposition of property and equipment

1

2

     Free Cash Flow

$                  41

$                 268

See the accompanying notes on Schedule V attached to this press release.

 

SCHEDULE III

FLEX

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

As of June 26, 2026

As of March 31, 2026

ASSETS

Current assets:

Cash and cash equivalents

$                2,840

$                2,389

Accounts receivable, net of allowance for doubtful accounts

5,036

4,679

Contract assets

1,386

1,063

Inventories

6,453

5,845

Other current assets

2,522

2,356

Total current assets

18,237

16,332

Property and equipment, net

2,655

2,505

Operating lease right-of-use assets, net

794

659

Goodwill

1,831

1,369

Other intangible assets, net

736

283

Other non-current assets

945

912

Total assets

$               25,198

$               22,060

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                9,195

$                8,055

Accrued payroll and benefits

579

671

Deferred revenue and customer working capital advances

2,053

2,156

Other current liabilities

1,393

1,134

Total current liabilities

13,220

12,016

Long-term debt, net of current portion

5,219

3,751

Operating lease liabilities, non-current

711

565

Other non-current liabilities

548

584

Total liabilities

19,698

16,916

Total shareholders’ equity

5,500

5,144

Total liabilities and shareholders’ equity

$               25,198

$               22,060

 

SCHEDULE IV

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Three-Month Periods Ended

June 26, 2026

June 27, 2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$         285

$          192

Depreciation, amortization and other impairment charges

140

142

Changes in working capital and other, net

(149)

65

Net cash provided by operating activities

276

399

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(236)

(133)

Proceeds from the disposition of property and equipment

1

2

Acquisition of businesses, net of cash acquired

(1,134)

(41)

Proceeds from divestiture of businesses, net of cash held in divested businesses

90

—

Other investing activities, net

—

(7)

Net cash used in investing activities

(1,279)

(179)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from bank borrowings and long-term debt

2,830

500

Payments of bank borrowings, long-term debt and other financing liabilities

(1,385)

(532)

Payments for repurchases of ordinary shares

—

(247)

Other financing activities, net

10

(4)

Net cash (used in) provided by financing activities

1,455

(283)

Effect of exchange rates on cash and cash equivalents

(1)

13

Net change in cash and cash equivalents

451

(50)

Cash and cash equivalents, beginning of period

2,389

2,289

Cash and cash equivalents, end of period

$       2,840

$       2,239

SCHEDULE V

FLEX AND SUBSIDIARIES
NOTES TO SCHEDULES I and II

To supplement Flex’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share. These supplemental measures exclude certain legal and other charges, restructuring charges, customer-related asset impairments (recoveries), stock-based compensation expense, intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Flex’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Flex’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Also, when evaluating potential acquisitions, we exclude certain items described below from consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;the ability to better identify trends in the Company’s underlying business and perform related trend analysis;a better understanding of how management plans and measures the Company’s underlying business; andan easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

We present forward‑looking non‑GAAP financial measures in our first quarter and full year fiscal 2027 guidance, including adjusted operating income, adjusted operating margin, adjusted income tax rate, and adjusted EPS. We do not provide a reconciliation of these measures to the most directly comparable GAAP measures because the information necessary to do so is not available without unreasonable effort due to the inherent variability, complexity, and uncertainty in forecasting certain items required for such a reconciliation. These items may include restructuring charges and impairment charges, among others. The information that is unavailable could be material and could significantly affect our GAAP results.

The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share units granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.

Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

Restructuring and impairment charges include severance charges at existing sites and corporate SG&A functions as well as asset impairment, and other charges related to the closures and consolidations of certain operating sites and targeted activities to restructure the business. These costs also include asset impairment charges related to assets significantly impacted by the geopolitical events on the basis of management’s best estimate of the recoverable value of assets.  These costs may vary in size based on the Company’s initiatives, are not directly related to ongoing or core business results, and do not reflect expected future operating expenses. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.

During the three month periods ended June 26, 2026 and  June 27, 2025, the Company recognized $1 million and approximately $23 million of restructuring charges, respectively, most of which related to employee severance.

Legal and other consist primarily of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other costs such as acquisition, portfolio optimization related costs and asset impairment. These costs are excluded by the Company’s management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures. During the three month period ended June 26, 2026, the Company incurred approximately $53 million primarily related to the planned spin-off of its Cloud and Power Infrastructure segment into a separate publicly traded company as well as $14 million of acquisition costs. During the three month period ended June 27, 2025, the Company incurred $6 million related to acquisitions costs.

Equity in losses of unconsolidated affiliates consists of various other types of items that are not directly related to ongoing or core business results, such as significant gains or losses associated with certain non-core investments. The Company excludes these items because they are not related to the Company’s ongoing operating performance or do not affect core operations. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability. During the three month period ended June 27, 2025, the Company recognized approximately $17 million equity in losses from a reduced valuation of a certain non-core investment fund. No such costs were incurred in the first quarter of fiscal year 2027.

Interest and other, net consist of various other types of items that are not directly related to ongoing or core business results, such as the gain or losses related to certain divestitures, currency translation reserve write-offs upon liquidation of certain legal entities, debt extinguishment costs and impairment charges or gains associated with certain non-core investments. The Company excludes these items because they are not related to the Company’s ongoing operating performance or do not affect core operations. During the three month period ended June 26, 2026, the Company recognized a $46 million gain on the divestiture of a subsidiary. No such costs were incurred in the first quarter of fiscal year 2026.

Adjustments for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. Effective in fiscal year 2026, the Company adopted an annual normalized tax rate for the purpose of determining the tax effect of non-GAAP adjustments. In estimating the normalized tax rate, the Company utilizes a full-year projection of earnings that considers the mix of earnings across tax jurisdictions, existing tax positions and other significant tax matters.

During the three month periods ended June 26, 2026 and June 27, 2025, the Company recognized a $7 million and $19 million net tax benefit, respectively, related to the tax effects of various adjustments that are incorporated into non-GAAP measures on restructuring and other.

Free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions, repurchase company shares and for certain other activities. The Company’s free cash flow is defined as cash flows from operating activities, less net purchases of property and equipment and proceeds from the disposition of property and equipment (“net capital expenditures”), allowing us to present free cash flow on a consistent basis for investors.

During the three month periods ended June 26, 2026 and June 27, 2025, the Company recognized $41 million and $268 million of free cash inflow, respectively. Free Cash Flow for the three month period ended June 26, 2026,  was negatively impacted by $24 million of separation costs incurred in connection with the spin-off of Flex’s Cloud & Power Infrastructure segment. Free cash flow is not a measure of liquidity under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.

 

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Tech Beats Tariffs: Global Trade Growth Accelerates and Globalization Sets New Record

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42 minutes ago

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October 20, 2026

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The AI boom has become a powerful driver of global trade – outweighing tariffs and geopolitical shocks, according to the latest DHL Globalization TrackerThe trade outlook has improved, with growth through 2029 now forecast to outpace the previous decadeSouth and Central Asia to have the second-fastest goods-trade growth over 2026–29, behind only the Middle East & North AfricaIndia continues to strengthen its trade resiliency by developing new trade agreementsGlobalization has reached a record level of 25.8%

NEW DELHI, Oct. 20, 2026 /PRNewswire/ — The global race to build infrastructure for artificial intelligence is giving world trade strong momentum at a time of higher tariffs and geopolitical conflicts.

This is one of the key findings of the latest edition of the DHL Globalization Tracker, released by DHL and New York University’s Stern School of Business. Based on more than 30 million data points, the report analyzes international flows of trade, capital, information, and people. It offers the most comprehensive view of globalization available. This edition marks the report’s first publication under its new name. It was previously known as the “DHL Global Connectedness Tracker”.

AI buildout boosts global trade

The report shows that global goods trade grew faster in the first half of 2026 than in any half-year in the past 15 years, apart from the exceptional Covid rebound. A major driver was strong demand for goods used to build AI infrastructure, such as semiconductors and data-transmission equipment. Trade in AI-enabling goods drove 42% of goods trade growth in 2025, and this share rose to 76% during the first quarter of 2026, according to WTO and OECD analysis.

“The biggest story in global trade right now is AI – not tariffs,” said John Pearson, CEO of DHL Express. “Every AI query ultimately depends on logistics. Chips, networking equipment and the many other goods behind this technology must be in the right place at the right time. DHL connects the businesses and markets behind these complex supply chains. Whenever innovation creates new trade flows, our global network helps keep them moving.”

Global effects of Iran war and tariffs remain limited

At the same time, the Iran war and the closure of the Strait of Hormuz disrupted important trade routes. But the effects remained concentrated. Economies dependent on the Strait were hit particularly hard. For example, the value of trade fell 37% in Saudi Arabia and 7% in the United Arab Emirates in the first five months of 2026 compared with the same period in 2025.

Trade policy created a separate headwind. U.S. tariffs reached their highest levels in decades, but their global impact was limited. One reason is that the U.S. accounted for only 13% of world imports in recent years, with roughly half of those imports exempt from the tariff increases as of August 2026. Another is that most countries refrained from broad retaliation. Many instead increased efforts to secure access to alternative markets through new trade agreements.

Trade outlook upgraded despite recent shocks

Looking ahead, global goods trade is projected to expand by an average of 3.4% per year through 2029. That would be substantially faster than the 2.7% rate recorded over the previous decade.

“The surprise is not only that global trade kept growing through new tariffs and the Iran war,” said Prof. Steven A. Altman, Director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management. “The outlook is now stronger than it was before either shock. This reminds us to look beyond the most visible disruptions and recognize the deeper reasons why trade remains so resilient. The AI trade boom highlights the demand for goods and services that can only be provided efficiently when specialized producers work together across countries. It also shows how companies continually adapt to keep trade moving through disruptions and policy shifts.”

India sits within one of the world’s strongest trade-growth regions, East Asia and the Pacific leads the way in 2026

Among all regions, East Asia and the Pacific recorded the strongest trade growth. The value of its trade rose 24% in the first five months of 2026 compared with the same period in 2025. Europe followed with 12% and Sub-Saharan Africa with 11%. South and Central Asia recorded a trade value growth of 9.6%. Looking forward, the region’s forecast remain the second-fastest for goods-trade growth over 2026–29, behind only the Middle East and North Africa.

East Asia and the Pacific not only recorded the strongest growth, but also saw a larger share of its trade stay within the region. This share increased from 57% in 2025 to 60% in the first five months of 2026. Strong Asian supply chains serving the AI boom contributed to this increase.

India focuses on market diversification

One of the major changes in international flows is the weakening of U.S.–China ties. Yet the global impact remains surprisingly small. For example, trade between the U.S. and China accounted for 3.5% of world trade at its peak in 2015, before falling to only 1.6% during the first five months of 2026. The U.S.–China share of international business investment is even smaller – less than 1%. Meanwhile, close U.S. allies have largely maintained their relationships with China. These findings challenge the idea that U.S.–China decoupling is dividing the world economy into rival blocs.

A closer look also shows that direct trade figures understate U.S. reliance on China. Goods imported into the U.S. from other countries contain growing amounts of Chinese materials and components. When these indirect imports are also taken into account, U.S. reliance on China has declined only slightly through 2024, the latest year for which data are available.

While U.S.-China ties are weakening, India’s trade relationship with the U.S. remains strong. At the same time, trade resilience remains a focus as India continues to expand its trade relationships, developing trade agreements with the European Union, the United Kingdom, the European Free Trade Association, New Zealand, and Oman.

Globalization reaches a new record

Beyond trade and investment patterns, the report tracks the broader development of globalization based on international flows of trade, capital, information and people. It uses a scale from 0% (no cross-border flows) to 100% (borders and distance have no impact). In 2025, globalization reached a record level of 25.8%, supported in part by AI-related trade and investment.

All four flow categories contributed to the new record, reaching higher levels of internationalization. Information flows remain the most globalized, followed by capital and trade flows. People flows remain the least globalized.

The DHL Globalization Tracker

The DHL Globalization Tracker is a concise report and interactive website that provides regular updates on globalization and global trade. It complements the renowned DHL Globalization Report, published regularly since 2011. Drawn from over 25 public, private, and academic sources, the Tracker analyzes more than 30 million data points on international flows of trade, capital, information, and people.
It includes interactive online charts that make it easy for users to explore trends by region, geopolitical alignment, and for individual countries. It also supports easy data and chart downloads for offline use.

The DHL Globalization Tracker is commissioned by DHL and authored by Prof. Steven A. Altman and Caroline R. Bastian of New York University Stern School of Business. It is available, together with further resources, at dhl.com/globalization.

Note: The DHL Globalization Tracker and DHL Globalization Report were formerly known as the “DHL Global Connectedness Tracker” and “DHL Global Connectedness Report”. Their new names more directly reflect the focus of the research. The scope and underlying approach remain unchanged, ensuring continuity with previous editions.

At a glance: The October 2026 edition of the DHL Globalization Tracker

What is the main finding of the report?

The global boom in artificial intelligence is giving world trade strong momentum despite higher tariffs and geopolitical conflicts. Global goods trade grew faster in the first half of 2026 than in any half-year in the past 15 years, apart from the exceptional Covid rebound.

Beyond trade, the report tracks the broader development of globalization based on international flows of trade, capital, information and people. In 2025, globalization reached a record level of 25.8%. The report measures this using a scale from 0% (no cross-border flows) to 100% (borders and distance have no impact). All four types of flows contributed to the record, becoming more international.

What is the outlook for global trade?

The outlook has improved. Global goods trade is projected to grow by an average of 3.4% per year through 2029. That would be significantly faster than the 2.7% annual growth rate recorded over the previous decade. Notably, current forecasts are more optimistic than those made before both the 2025-26 U.S. tariff increases and the Iran war, suggesting that recent shocks have had a smaller impact on the global economy than many expected.

How have tariffs and geopolitical conflicts affected global trade?

Tariffs and geopolitical conflicts continue to create risks and disruptions. But their overall impact on global trade has been limited. While the Iran war affected important shipping routes and hit economies dependent on the Strait of Hormuz particularly hard, the effects remained largely concentrated. U.S. tariffs rose to their highest levels in decades, but the United States accounted for only 13% of world imports in recent years, and roughly half of U.S. imports were exempt from tariff increases as of August 2026. Many countries also avoided broad retaliation and instead expanded trade links with alternative markets. As a result, global trade continued to grow.

Where is trade growing fastest?

East Asia and the Pacific saw the strongest trade growth among all regions. The value of its trade rose 24% in the first five months of 2026 compared with the same period in 2025. Europe followed with 12% and Sub-Saharan Africa with 11%.

East Asia and the Pacific not only recorded the strongest growth, but also saw a larger share of its trade stay within the region. This share increased from 57% in 2025 to 60% in the first five months of 2026. Strong Asian supply chains serving the AI boom contributed to this increase.

Is U.S.–China decoupling splitting the world into rival blocs?

No, not so far. The United States and China have significantly reduced their ties with each other over the past decade. But this has not led to a broader split in the global economy. Close U.S. allies have largely maintained their economic relationships with China. Another reason is that direct U.S.–China ties account for a surprisingly small share of the global economy. For example, trade between the two countries represented 3.5% of world goods trade at its peak in 2015, before falling to 1.6% in the first five months of 2026. The U.S.–China share of international business investment is even smaller – less than 1%.

Has the United States become less dependent on China?

Direct trade between the two countries has declined sharply, but the picture is more complex when supply chains are taken into account. Goods imported into the United States from third countries increasingly contain Chinese materials and components. When these indirect imports are considered, U.S. reliance on China declined only slightly through 2024.

Should companies redesign their supply chains to improve resilience?

For business leaders, the report recommends preparing for disruptions without giving up the advantages of international engagement. While specific economies, industries or trade routes can still face significant risks, overall global flows remain strong. Decisions such as relocating production should therefore balance supply-chain resilience with the benefits of global reach and market access. Companies that pull back from international markets while competitors remain globally active may risk weakening their competitive position.

– End –

The report and further resources are available at dhl.com/globalization.

DHL Group is the world’s leading logistics company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees, investors and green logistics worldwide. To this end, DHL Group is focusing on accelerating sustainable growth in its profitable core logistics businesses and Group growth initiatives. The Group contributes to the world through sustainable business practices, corporate citizenship, and environmental activities. By the year 2050, DHL Group aims to achieve net-zero emissions logistics.

DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel, express, freight transport, and supply chain management services as well as e-commerce logistics solutions. Deutsche Post is the largest postal service provider in Europe and the market leader in the German mail market. DHL Group employs approximately 584,000 people in over 220 countries and territories worldwide. The Group generated revenues of approximately 82.9 billion Euros in 2025.

The logistics company for the world.

New York University Stern School of Business, located in the heart of Greenwich Village and deeply connected to the city after which it is named, is one of the United States’ premier management education schools and research centers. NYU Stern offers a broad portfolio of transformational programs at graduate, undergraduate, and executive levels, all of them enriched by the dynamism and deep resources of one of the world’s business capitals. NYU Stern is a welcoming community that inspires its members to embrace and lead change in a rapidly transforming world. Visit www.stern.nyu.edu.

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ASTRI Welcomes Government Appointments of New Board Chairman and Board Members

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42 minutes ago

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October 20, 2026

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HONG KONG, Oct. 20, 2026 /PRNewswire/ — The Hong Kong Applied Science and Technology Research Institute (ASTRI) welcomes the Hong Kong SAR Government’s appointment of Prof Chan Chi-hou as the new Board Chairman, effective 21 October 2026, for a two-year term. He succeeds Ir Prof Sunny Lee, who concludes a seven-year tenure as ASTRI’s Board Chairman on 20 October 2026.

Prof Chan Chi-hou said: “I am deeply honoured that the Hong Kong SAR Government has entrusted me to serve ASTRI and contribute to our country and Hong Kong’s technological innovation and development goals outlined in the Nation’s 15th Five-Year Plan and Hong Kong’s first five-year plan. I would also like to thank Ir Prof Sunny Lee for his visionary leadership, particularly in steering the successful merger with the Nano and Advanced Materials Institute (NAMI), which has strengthened ASTRI’s interdisciplinary research and development (R&D) capabilities and heightened its profile at home and abroad.”

“As Hong Kong accelerates investment in technology infrastructure and talent development, I look forward to working closely with fellow Board members and Ir Dr Ted Suen, CEO of ASTRI, to advance innovation, foster collaboration across government, industry, academia, research, and investment communities, and expedite the commercialisation and adoption of research outcomes. Together, we will help enhance Hong Kong’s competitiveness, create greater value for society and reinforce the city’s position as an international innovation and technology (I&T) hub,” he added.

Prof Chan is an internationally-recognised expert in applied electromagnetics, terahertz science and wireless communications. He currently serves as Vice-President (Community Engagement), Director of the State Key Laboratory of Terahertz and Millimetre Waves, and Chair Professor of Electronic Engineering at City University of Hong Kong (CityU). Before joining CityU in 1996, he was a tenured Associate Professor in the Electrical Engineering Department at the University of Washington, and a Visiting Assistant Professor in the Electrical and Computer Engineering Department at the University of Illinois. He obtained his bachelor’s and master’s degrees from The Ohio State University and his doctoral degree from the University of Illinois at Urbana-Champaign. An IEEE Fellow, Prof Chan has received numerous international honours in recognition of his pioneering research and contributions to the field.

Outgoing Chairman Ir Prof Sunny Lee congratulated Prof Chan on the appointment and said: “It has been my great privilege to serve on ASTRI’s Board as a member and Chairman for nearly 14 years to witness its remarkable growth into a leading R&D centre that delivers tangible impact for industry, the economy and society. I am confident that, with Prof Chan’s distinguished expertise, strategic vision and extensive leadership experience, ASTRI will continue to scale new heights, drive impactful innovations and accelerate the translation of research excellence into real-world applications, creating lasting value for Hong Kong and beyond.”

Under Ir Prof Lee’s stewardship, ASTRI has actively supported national development priorities and the Hong Kong SAR Government’s policy agenda. Leveraging Hong Kong’s unique role as a super-connector between Chinese Mainland and the world, ASTRI has reinforced its position bridging stakeholders in the global I&T ecosystem.

Six New Board Members Appointed

In addition, the Hong Kong SAR Government has appointed six new members to the ASTRI Board: Prof Chan Shing-chow, Professor & Associate Dean (Masters), Faculty of Engineering, University of Hong Kong; Mr Ricky Chan Wai-chung, Chief Executive Officer, Jing Mei Automotive Limited; Mr Alan Chiu Chi-wai, Managing Partner, ELLALAN; Ms Irene Chow Man-ling, Director, DSL Investments Limited; Mr Hui Chi-wai, Chief Executive Officer (AXM), ASMPT SEMI China (AXM); and Prof Gary Wong Ka-leung, Associate Provost (Quality Assurance and Accountability) and Chair Professor, Department of Chemistry, City University of Hong Kong. Their two-year terms will run from 21 October 2026 to 20 October 2028.

ASTRI expresses its heartfelt gratitude to outgoing Board Chairman Ir Prof Sunny Lee and members Dr Felix Chow Bok-hin, Mr Theodore Ma Heng, Dr Alfred Ng Man-cheuk, Ir Dr Samson Tai Kin-hon and Mr Anthony Tong Tat-hay for their dedicated service and invaluable guidance.

Effective from 21 October 2026, the members of ASTRI’s Board of Directors are as follows:

Chairman

Prof Chan Chi-hou

Members (listed in alphabetical order of surname)

Prof Chan Shing-chowMr Ricky Chan Wai-chungProf Christopher Chao Yu-hangProf Cheng Shuk-han, MHMr Alan Chiu Chi-waiMr Jason Chiu Tsz-kiu, JPMs Irene Chow Man-ling, JPMr Dennis Ho Chiu-pingMr William Ho TatMr Hui Chi-waiIr Arthur Lee Kam-hungHon Jack Ng Wun-kit, JPArchitect So Ching, JPProf Michael Tse Chi-kongProf Martin Wong Ding-fatProf Gary Wong Ka-leungMr Wilfred Wong Kam-pui, BBS, JP

Official Members

Mr Kevin Choi, JP, Permanent Secretary for Innovation, Technology and IndustryMr Ivan KB Lee, JP, Commissioner for Innovation and Technology

Photos Download: https://bit.ly/4B1pToO

About ASTRI

Founded in 2000 by the HKSAR Government, Hong Kong Applied Science and Technology Research Institute (ASTRI) is the city’s largest government-funded R&D centre. Committed to transforming high-impact research into practical innovations, ASTRI drives market-driven, interdisciplinary advancements across sectors, including Smart City, FinTech, Digital Health and Life Sciences, New Industrialisation and Intelligent Manufacturing, Application-Specific Integrated Circuits (ASIC) and Advanced Electronics, New Energy and Energy Storage, and Green and ESG Technologies. Following its merger with the Nano and Advanced Materials Institute, ASTRI has further strengthened its capabilities, with over 1,500 patents and 2,200 successful cases of technology transfer. Recognised with numerous international awards, ASTRI continues to nurture top I&T talent and foster collaborations among the I&T ecosystem, contributing to Hong Kong’s high-value economic development. For more information, please visit: https://www.astri.org 

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SOURCE Hong Kong Applied Science and Technology Research Institute (ASTRI)

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Neo’s European Integrated Magnet Project Selected for €126 Million Grant Under EU Innovation Fund

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43 minutes ago

on

October 20, 2026

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Grant would help fund an expanded integrated rare earth separation, metallization and magnet manufacturing platform in Estonia

TORONTO, Oct. 19, 2026 /CNW/ — Neo Performance Materials Inc. (“Neo” or the “Company”) (TSX: NEO) (OTCQX: NOPMF) today announced that the European Climate, Infrastructure and Environment Executive Agency (“CINEA”) has invited Neo to prepare a grant agreement for its Green Assets from European Union Strategic Supply (“Project GAUSS”) under the European Union’s Innovation Fund. Neo’s Project was selected with a grant of up to €126 million (approximately US$141 million).

Neo’s project, co-funded by the Innovation Fund, would support an expanded rare earth magnet value chain in Estonia, spanning separation, metallization and magnet manufacturing, including adding up to 3,000 metric tonnes of permanent magnets per year. One third of that capacity would be allocated to offshore wind farms in the EU.

The project includes the following scope:

Separation (Silmet 2.0): light and heavy rare earth separation tripling its total separation capacity. Earlier this month, the European Commission designated Silmet 2.0 a Strategic Project under the EU Critical Raw Materials Act.Metallization: conversion of separated light and heavy rare earth oxides into metals.Magnet Manufacturing (Phase 1B): the Phase 1B expansion of the European permanent magnet facility, which is expected to increase its nameplate capacity from its current 2,000 metric tonnes to approximately 5,000 metric tonnes per year, with the addition of capabilities to support offshore wind farms.Digital Infrastructure for Competitiveness: digital twins and artificial intelligence across rare earth separation, metallization and magnet manufacturing, learning from plant data and operator expertise to predict quality, optimize resource use and progressively translate validated insights into physical process control.

“Neo’s strategy includes building the most vertically integrated rare earth magnetics value chain in Europe, and this project brings that strategy together, from separation to metallization and finished magnets,” said Rahim Suleman, President and Chief Executive Officer of Neo. “The EU’s selection of Neo’s project, following the Strategic Project designation of Silmet 2.0 earlier this month, is strong recognition of that plan. This funding would help us further scale magnet production for European customers in wind energy, electromobility and industrial automation. I want to thank the European Commission, CINEA and the Government of Estonia for their continued support.”

Neo expects the value of the project to be approximately €400 million. Neo intends to update the capital cost estimate as project planning and engineering activities progress. The timetable set by CINEA provides for signature of the grant agreement by March 23, 2027 and the project is expected to take between two to three years to complete.

The project remains subject to final investment decisions and a final grant agreement, which include legal entity validation, a financial capacity assessment, a non-exclusion check and ethics and security reviews.  

About Neo Performance Materials

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo’s advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo’s products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in Canada, Estonia, China, Germany, Thailand and the United Kingdom, as well as a dedicated research and development center in Singapore.

For more information, please visit www.neomaterials.com.

Cautionary Statements Regarding Forward-Looking Statements

This news release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, the signing and timing of the grant agreement with CINEA, the amount of the grant, final investment decisions, the scope, capacity, development, financing and timing of Project GAUSS, including Silmet 2.0 and Phase 1B, expected emissions avoidance and job creation, and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information.  There are many risk factors associated with the development of a new Project.  A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of operations including the risks of a material adverse change in the Company’s assets or revenues, or risks of unknown liabilities that may arise.

Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Climate, Infrastructure and Environment Executive Agency (CINEA). Neither the European Union nor the granting authority can be held responsible for them.

For more information on Neo, investors should review Neo’s continuous disclosure filings that are available under Neo’s profile at www.sedarplus.ca.

SOURCE Neo Performance Materials, Inc.

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