FLEX · Flex Ltd.

Flex delivered robust fiscal 2026 results anchored by disciplined execution: full-year net sales grew 8% to $27.9 billion, GAAP operating margin expanded 40 bps to 4.9%, and non-GAAP operating margin reached a record 6.3%—the sixth straight quarter above 6.0%. Q4 performance was particularly strong, with $7.5 billion in net sales (+17% YoY) and non-GAAP EPS of $0.93, supported by improved gross profit and controlled SG&A. Management attributed the outcome to targeted acquisitions, capital investments aligned to long-term growth, and portfolio optimization. Critically, Flex simultaneously announced a transformative strategic separation: spinning off its Cloud and Power Infrastructure segment into an independent, publicly traded company (SpinCo), with the transaction approved unanimously by the Board and targeted for Q1 2027. The spin-off is intended to be tax-free and aims to sharpen strategic focus—SpinCo will concentrate on AI data center power/thermal infrastructure with aggressive growth targets (~65–75% FY2027 revenue growth), while Flex refocuses on advanced manufacturing across healthcare, industrial, automotive, and communications end markets. Leadership transitions are integral: Revathi Advaithi will lead SpinCo and serve as Flex’s transitional Chairman; Michael Hartung will assume the CEO role at Flex. FY2027 guidance—excluding SpinCo—calls for $32.3–$33.8 billion in net sales (18% midpoint growth) and $4.21–$4.51 adjusted EPS (32% midpoint growth), underpinned by an expected 7.0–7.1% adjusted operating margin. This dual announcement signals a decisive shift toward two distinct, capital-efficient businesses—each with dedicated leadership, clearer investment theses, and enhanced ability to pursue sector-specific growth opportunities and capital allocation strategies.