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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Shares of contract manufacturer Flex surged more than 35% following strong financial results and a strategic plan to spin off its Cloud and Power Infrastructure business by Q1 2027. The company issued robust guidance for FY27, projecting net sales between $32.3 billion and $33.8 billion, with adjusted EPS targeted at $4.21–$4.51, exceeding consensus estimates. This outlook is bolstered by the Cloud and Power Infrastructure segment's impressive 31% year-over-year growth recorded during FY26. The spinoff is expected to be a tax-free transaction designed to unlock the value of Flex's AI infrastructure assets and provide investors with direct exposure to high-growth segments. Analysts noted that the ambitious financial targets reflect market enthusiasm for the company's data center capabilities. The transition aims to allow for a more focused valuation of its specialized infrastructure and energy business units.
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