What Flex Ltd. told the SEC could break it.

Tariff law is in flux — the Feb 2026 Supreme Court strikedown of IEEPA tariffs, a subsequent 10% Section 122 global tariff, and a May 2026 Court of International Trade ruling against Section 122 (on appeal) — creating uncertainty over rates, scope, enforceability and refunds for Flex's cross-border manufacturing.

“on February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). Following that decision, the U.S. administration announced a new 10% global tariff under Section 122 of the Trade Act of 1974, subject to certain exceptions; however, on May 7, 2026, the U.S. Court of International Trade ruled that the Section 122 tariffs were not authorized by law, a decision the administration has appealed.”

Flex sources certain components from a limited number of (sometimes single) suppliers, and customers often direct purchases from specified suppliers that may be sole sources or geographically concentrated, with limited ability to qualify alternatives or pass through cost increases.

“Certain components that we use are sourced from a limited number of suppliers, and in some cases from a single supplier, which increases the risk that regulatory actions, geopolitical developments, trade restrictions or other events affecting those suppliers could disrupt our supply chain. In addition, certain of our customers direct or require us to purchase components, materials, or subsystems from specified suppliers. In some cases, these customer-directed suppliers may be sole sources for the required components or may be geographically concentrated.”

Flex's ten largest customers were 45% of net sales in fiscal 2026 (44% in 2025); although no single customer exceeded 10%, the top-customer concentration creates demand-loss exposure.

“Our ten largest customers during fiscal years 2026 and 2025 accounted for 45% and 44% of net sales, respectively. We maintain a diverse portfolio which allows us to operate at scale in many different industries, and, as a result, no customer accounted for greater than 10% of net sales in fiscal year 2026 or 2025.”

Flex's manufacturing by product location is concentrated in Mexico (25%), U.S. (19%), China (16%) and Malaysia (11%); China-Taiwan tensions could disrupt Taiwan-based semiconductor/component supply on which many of its customers depend.

“geopolitical changes in China-Taiwan relations could disrupt the operations of several companies in Taiwan that are critical to the global supply of semiconductors and other electronic components on which many of our customers depend, and any escalation of tensions could materially affect our supply chain and operations.”

Flex's fast-growing CPI segment (Cloud/Cooling and Power, +38% in FY2026) depends on data-center customers' access to debt/equity markets; tighter credit, higher rates or reduced digital-infrastructure investment could lead customers to delay or cut orders.

“The development and expansion of data center capacity, including site acquisition, power procurement, and infrastructure buildouts, are capital intensive and often depend on our customers' access to debt and equity markets. Higher interest rates, tighter credit conditions, reduced investor appetite for digital infrastructure investment, or broader concerns regarding economic conditions and financial market volatility may lead our data center customers to delay, scale back, or reprioritize projects, renegotiate commercial terms, or reduce order volumes.”