Overview
- Flex, which announced the plan Tuesday, is targeting a first‑quarter 2027 separation that is expected to be tax‑free and remains subject to regulatory approvals and market conditions.
- CEO Revathi Advaithi will lead the new company, and Michael Hartung will become CEO of the remaining Flex after the split.
- Flex posted record results with fourth‑quarter revenue around $7.5 billion and adjusted earnings of $0.93 per share, and it guided fiscal 2027 revenue to $32.3–$33.8 billion with $1.4–$1.6 billion of capital spending to add data‑center power and cooling capacity.
- The Cloud and Power Infrastructure segment delivered about $1.8 billion in Q4 revenue, up 31% year over year with roughly 9.9% adjusted operating margin, and management forecasts 65%–75% growth next year and more than 80% in fiscal 2028 backed by a multi‑year Google contract and a booked backlog.
- Following Wednesday’s rally of roughly 30%–35%, investors cheered the earnings beat and separation plan even as Flex withheld key carve‑out details such as SpinCo’s standalone revenue, margin profile, debt load, and any retained stake.