Flex to Spin Off Cloud and Power Infrastructure Segment

Flex plans to spin off its Cloud and Power Infrastructure (CPI) segment in the first quarter of 2027. The company intends to position the new entity as a dedicated AI infrastructure play to leverage current market demand.

Financial guidance for the CPI segment in fiscal year 2027 projects revenue growth between 65% and 75%, with more than 90% of that business already booked. Flex reports a strong operational run characterized by improving revenue, margins, and earnings per share, as well as high visibility into its future backlog.

Despite these gains, the company notes that free cash flow conversion is currently under pressure due to separation costs and higher capital expenditures. Flex will provide additional details on financial targets, debt allocation, and post-spin cash-flow paths during an investor day on November 10.