Flex to Spin Off Cloud & Power Infrastructure; Q4 Net Sales $7.5B
Flex Ltd. announced its plan to spin off its cloud and power infrastructure business into a new independent publicly traded company, SpinCo, aiming to create two focused entities for enhanced customer and shareholder value. Revathi Advaithi will lead SpinCo, while Michael Hartung will become CEO of Flex, with the tax-free transaction expected to close in Q1 calendar 2027. Concurrently, Flex reported strong financial results for the fourth quarter and full fiscal year ended March 31, 2026, with Q4 net sales of $7.5 billion and full-year net sales of $27.9 billion, alongside record adjusted operating margins. The company also provided optimistic guidance for fiscal year 2027, projecting significant growth in net sales and adjusted EPS.
Key Highlights
- Flex announced its intent to spin off its cloud and power infrastructure business into a new independent publicly traded company (SpinCo).
- Revathi Advaithi will become CEO of SpinCo and serve as Chairman of Flex for a transitional period; Michael Hartung will be named CEO of Flex.
- The transaction is intended to be tax-free to shareholders and is targeted to close in the first quarter of calendar 2027.
- Flex reported Q4 fiscal 2026 net sales of $7.5 billion, up 17% year-over-year, with adjusted EPS of $0.93.
- Full-year fiscal 2026 net sales reached $27.9 billion, up 8% year-over-year, with a record adjusted operating margin of 6.3% and adjusted EPS of $3.30.
- For Q1 fiscal 2027, Flex expects net sales of $7.35 billion to $7.65 billion and adjusted EPS of $0.86 to $0.92.
- For full-year fiscal 2027, Flex (excluding SpinCo) anticipates net sales of $32.3 billion to $33.8 billion, adjusted operating margin of 7.0% to 7.1%, and adjusted EPS of $4.21 to $4.51.