Flex Reports 25% Sales Growth to $8.5 Billion and Lifts Fiscal 2027 Guidance

Flex reported second-quarter fiscal 2027 net sales of $8.5 billion, up 25% from the prior year, and raised its full-year outlook. The Austin, Texas-based advanced manufacturer announced the results on October 28, 2026, according to Stock Titan.

Flex's Quarter and the EPC Power Deal

Flex, an advanced manufacturing partner for AI data center, automotive, industrial and consumer customers, posted GAAP operating income of $414 million and adjusted operating income of $607 million. GAAP earnings per share were $0.70, and adjusted earnings per share were a record $1.18. Cash provided by operating activities was $501 million, and free cash flow was $261 million.

"Our acquisition of EPC Power further completes our end-to-end Power portfolio and will be immediately accretive in fiscal 2027," CEO Revathi Advaithi said in the release. Flex entered a $3.3 billion senior term loan on September 29, 2026, to fund part of the cash consideration for EPC Power Corp. and related assets, according to American Banking and Market News.

Advaithi also cited the planned spin-off of the Cloud and Power Infrastructure segment and the unveiling of the Axiom name as steps toward creating two focused companies.

Flex's Raised Fiscal 2027 Guidance

Flex's updated fiscal 2027 guidance reflects expected results for the full year and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment, and it includes contributions from recent acquisitions closed after September 25, 2026. The company now expects net sales of $34.9 billion to $35.9 billion, growth of 27% at the midpoint, compared with prior guidance of $33.7 billion to $35.2 billion. Adjusted operating margin is guided to 7.6% to 7.8%, up from 7.0% to 7.2%, and adjusted earnings per share to $4.84 to $5.16, up from $4.42 to $4.74.

For the third quarter, Flex guided net sales to $8.87 billion to $9.17 billion, growth of 28% at the midpoint, adjusted operating income of $685 million to $715 million and adjusted earnings per share of $1.19 to $1.25, growth of 40% at the midpoint.

Flex's Path to the Spin-Off

Flex's board unanimously approved a plan in May 2026 to spin off its Power and Cloud portfolio into a new independent publicly traded company, targeted to close in the first quarter of 2027 in a tax-free transaction for shareholders, according to akta.pro company records. Flex was selected to join the S&P 500 Index effective June 22, 2026. In June 2026, Chase Corporation acquired Sheldahl from Flex; financial terms were not disclosed.

Flex's Next Reporting Date

Flex said its management team would host a conference call on October 28, 2026, to review the second-quarter results, with a live webcast, audio replay and transcript available on its investor relations website.