Flex beats second-quarter estimates and raises fiscal 2027 outlook

Revenue reached $8.49 billion against $8.30 billion expected, and the company now guides third-quarter sales to $8.87 billion to $9.17 billion.

Flex earned $1.18 a share in the second quarter of fiscal 2027, $0.11 more than analysts expected. Revenue was $8.49 billion, against $8.30 billion expected.

For the third quarter, Flex expects net sales of $8.87 billion to $9.17 billion and adjusted earnings of $1.19 to $1.25 a share. It has raised its full fiscal 2027 outlook to net sales of $34.9 billion to $35.9 billion, up from $33.7 billion to $35.2 billion. Adjusted earnings for the year are now expected at $4.84 to $5.16 a share, up from $4.42 to $4.74.

Chief executive Revathi Advaithi said Flex is moving ahead with its planned spin-off of the Cloud and Power Infrastructure segment. She said the EPC Power acquisition will be immediately accretive in fiscal 2027, meaning it will add to earnings per share from the start.

The quarter and the higher guidance arrive while Flex is in the middle of the Axiom Solutions International spin-off. That gives the segment a stronger earnings base just as it prepares to carry the $4.4 billion EPC Power debt on its own. Management's statement that the deal will be accretive supports the financing that investors had already seen, built around a preferred share sale with General Catalyst and Koch Equity Development. Guidance has been raised twice during this separation. The core Flex business is showing it can absorb the costs of carving out the segment, which means the separation is not yet denting near-term profit.