Flex (FLEX) Q4 2026 earnings summary

Executive summary

• Announced intent to spin off Cloud and Power Infrastructure (CPI) into a new public company by Q1 2027, aiming to unlock value and sharpen strategic focus.

• Q4 FY26 revenue reached $7.5B, up 17% year-over-year; FY26 revenue totaled $27.9B, up 8% year-over-year.

• Achieved FY27 margin target of 6%+ a year ahead; sixth consecutive year of double-digit adjusted EPS growth.

• Closed acquisition of Electrical Power Products (EP²), enhancing power portfolio for grid modernization.

• Leadership transitions: Revathi Advaithi to lead SpinCo, Michael Hartung to become CEO of Flex.

Financial highlights

• Q4 adjusted operating margin: 6.7%, up 50 bps year-over-year; adjusted EPS: $0.93, up 27% year-over-year.

• FY26 revenue: $27.9B, up 8%; adjusted operating income: $1.8B; adjusted EPS: $3.30, up 25%.

• Free cash flow for FY26: $1.06B; Q4 free cash flow: $212M.

• FY26 CapEx: $625M (2.2% of revenue); $944M in share repurchases for the year.

• Cloud and Power Infrastructure segment revenue surged 38% year-over-year.

Outlook and guidance

• FY27 revenue guidance: $32.3B–$33.8B, up 18% at midpoint; adjusted operating margin: 7%–7.1%; adjusted EPS: $4.21–$4.51, up 32% at midpoint.

• FY27 CapEx: $1.4B–$1.6B; free cash flow conversion ~60%.

• CPI segment revenue expected to grow 65%–75% in FY27 and 80%+ in FY28.

• Q1 FY27 revenue guidance: $7.35B–$7.65B, up 14% at midpoint; adjusted EPS: $0.86–$0.92.

• Guidance excludes impact from planned spin-off of CPI segment.