Flex (FLEX) Q2 2027 Earnings Beat Fueled by AI Data Center Boom
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Flex's Cloud and Power Infrastructure segment, set to be spun off as Axiom, is now guided to grow 75% to 85% this fiscal year on AI data center demand. Full-year adjusted EPS guidance rose to $4.84 to $5.16, with results exceeding expectations on both lines.
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Flex posted adjusted EPS of $1.18 in its fiscal second quarter, beating expectations for the fifth straight quarter. Revenue of $8.49 billion also came in above estimates, growing nearly 25% year over year.
The engine behind that growth is the Cloud and Power Infrastructure segment, which Flex is now guiding to expand 75% to 85% for the full fiscal year on hyperscale AI data center buildouts. That segment is being spun off as a separately traded company called Axiom, which CEO Revathi Advaithi described as creating two focused companies positioned for long-term success.
Adjusted operating margin expanded to 7.1% from 6.0% a year earlier, even while absorbing Axiom spin-off preparation costs. Operating income rose nearly 40% year over year.
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Management raised full-year fiscal 2027 adjusted EPS guidance to a range of $4.84 to $5.16, implying roughly 52% earnings growth at the midpoint. Third-quarter guidance points to 40% growth at the midpoint.
The Axiom spin-off remains the single largest variable investors are tracking. Flex also acquired EPC Power Corp. to round out its power portfolio, a deal management expects to be immediately accretive in fiscal 2027. Whether AI infrastructure demand holds decides if raised guidance is a floor or a ceiling.
Mentioned: FLEX