Benzinga Pro data showed Flex shares gaining 10.11% to $91.78 at publication time on Wednesday after better-than-expected second-quarter fiscal 2027 results and higher annual guidance. Strong demand for AI infrastructure supported the manufacturing and technology company's performance. Flex reported adjusted earnings of $1.18 per share, exceeding analysts' estimate of $1.05. Revenue grew 25% from a year earlier to $8,491 million, above the consensus estimate of $8,141 million.
GAAP earnings reached 70 cents per share, compared with 52 cents a year earlier. Adjusted earnings per share increased 49% to a record $1.18. Flex recorded GAAP operating income of $414 million. Adjusted operating income increased 48% to $607 million. Adjusted operating margin reached 7.1%, an expansion of 110 basis points.
Regulated Manufacturing Solutions generated $2.7 billion in revenue, up 9%. Integrated Technology Solutions revenue increased 22% to $3.3 billion. Demand for AI infrastructure drove Cloud and Power Infrastructure (CPI) revenue up 54% to $2.5 billion. CPI's adjusted operating margin reached 10.7%, an increase of 240 basis points. Flex said ongoing investment in AI data centers supported demand for Flex's cloud, cooling and power solutions.
CEO Revathi Advaithi discussed the planned separation of CPI during the earnings call. Advaithi said the separation would create two stronger companies with separate identities, focused strategies and the ability to pursue distinct opportunities. Advaithi said Flex has leading positions in compute and power technologies but is still at an early stage of expanding cooling operations. Flex plans new product introductions during the next six months to strengthen Flex's AI infrastructure offerings.
Flex completed the acquisition of EPC Power on October 14 and expects the transaction to increase fiscal 2027 earnings. Advaithi said the acquisition would improve power efficiency before solid-state transformers gain broader adoption. Advaithi said digital rectifiers already can deliver 97% power efficiency, a major reason for the acquisition.
Flex generated operating cash flow of $501 million. Free cash flow totaled $261 million after separation-related costs reduced free cash flow by $61 million. Flex held $3,083 million in cash and cash equivalents at quarter-end. Long-term debt stood at $5,213 million, excluding the current portion.
Flex projected third-quarter adjusted earnings between $1.19 and $1.25 per share, against analysts' estimate of $1.22. Flex forecast third-quarter revenue between $8.87 billion and $9.17 billion, compared with the consensus estimate of $8,953 million. Flex increased fiscal 2027 adjusted earnings guidance to between $4.84 and $5.16 per share from between $4.42 and $4.74. The midpoint of the revised earnings range exceeds the $4.67 consensus estimate. Flex raised annual revenue guidance to between $34.9 billion and $35.9 billion from between $33.7 billion and $35.2 billion. Analysts expected annual revenue of $34,674 million.
Flex Stock Surges 10.11% on Strong Q2 Earnings and AI Infrastructure Demand
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Summary
Flex (NASDAQ:FLEX) shares climbed 10.11% to $91.78 on Wednesday, fueled by Q2 fiscal 2027 results that beat expectations and a rise in annual guidance. Adjusted earnings hit $1.18 per share, above forecasts of $1.05, with revenue up 25% to $8.49 billion. On-chain data shows strong buying momentum, aligning with rising fear and greed index readings. Demand for AI infrastructure, especially in cloud and power solutions, drove the performance. Flex also announced a planned separation of its Cloud and Power Infrastructure segment and raised fiscal 2027 guidance.
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