Flex to Spin Off Cloud and Power Unit, SpinCo to Target 65%–75% Growth
Flex will spin off its cloud and power infrastructure unit into an independent public company led by Revathi Advaithi, with Michael Hartung appointed CEO of Flex and a tax-free closing targeted for Q1 2027. SpinCo is expected to grow revenue by 65%–75% in fiscal 2027 and exceed 80% in 2028.
1. Spin-Off Announcement
Flex’s Board has unanimously approved the separation of its cloud and power infrastructure segment into a new, publicly traded company. The transaction is intended to be tax-free to shareholders and is targeted to complete in the first quarter of calendar 2027.
2. SpinCo Profile and Projections
The new entity, SpinCo, will focus on end-to-end power and thermal management technologies and integrated infrastructure systems for AI data centers and mission-critical applications. SpinCo is targeting 65%–75% revenue growth in fiscal 2027, with acceleration to over 80% in 2028.
3. Leadership and Corporate Structure
Revathi Advaithi will serve as CEO of SpinCo and transition to Chairman of Flex’s Board post spin-off. Michael Hartung has been named CEO of Flex and will lead its advanced manufacturing operations across diversified end markets.
4. Q4 and Fiscal Year 2026 Results
In the fourth quarter, Flex reported net sales of $7.5 billion, up 17% year-over-year, with an adjusted operating margin of 6.7%. For fiscal 2026, net sales were $27.9 billion, up 8%, adjusted EPS was $3.30 and free cash flow reached $1.06 billion.