Flex (FLEX) Q4 FY2026 Earnings Call — May 6, 2026

Source: Flex Q4 FY2026 press release (May 5, 2026) + Motley Fool transcript (May 6, 2026) + Yahoo Finance/Quartr summary.

Revathi Advaithi (CEO): Our strong finish to FY 2026 reflects disciplined execution and a clear strategy, supported by targeted acquisitions and capital investments aligned to Flex's long-term growth opportunities. We reported Q4 net sales of $7.5 billion, up 17% year over year, and full-year net sales of $27.9 billion, up 8%. We delivered Q4 adjusted operating margin of 6.7%, our sixth consecutive quarter with an adjusted operating margin of 6% or greater, and full-year adjusted operating margin of 6.3%, another record for Flex. Q4 adjusted EPS was $0.93, up 27%, and full-year adjusted EPS was $3.30, up 25%.

Today we announced a plan to spin off our Cloud and Power Infrastructure (CPI) segment into a separate publicly traded company, expected to be completed in the first quarter of fiscal 2027. The spin will create two focused, high-growth companies. CPI is our data center and AI infrastructure business — power, cooling and compute — which is benefiting from extraordinary demand as AI becomes increasingly an infrastructure story, and more specifically a power story. We believe the spin will unlock significant value for shareholders.

[CPI segment commentary] CPI is targeting massive revenue growth of 65% to 75% in fiscal 2027, with further acceleration to over 80% in fiscal 2028.

Paul Lundstrom (CFO): Q4 net sales were $7.477 billion, up 17% year over year. GAAP operating margin was 5.0%, and adjusted operating margin was 6.7%. GAAP EPS was $0.67, and adjusted EPS was $0.93, up 27%. Full-year GAAP EPS was $2.33, and adjusted EPS was $3.30, up 25%.

[Note: Flex's fiscal 2026 fourth quarter ended March 31, 2026. Adjusted EPS of $0.93 was up 27% year over year; FY26 adjusted EPS of $3.30 was up 25%. The CPI spin-off (Cloud & Power Infrastructure) was announced with this quarter's results, targeting Q1 FY2027 completion.]

Q&A Highlights (condensed)

• Q: Spin-off rationale and value creation? A: The spin creates two focused companies; CPI (data center/AI infrastructure — power, cooling, compute) is targeting 65-75% revenue growth in FY27 and 80%+ in FY28, benefiting from the AI infrastructure build-out.
• Q: Growth visibility in CPI? A: Demand is extraordinary; the constraint is capacity/install ramp, not demand; investments in facilities, cooling and manufacturing infrastructure are proceeding to support the FY27/FY28 growth targets.
• Q: Remaining Flex growth drivers? A: The core business continues to grow with disciplined margin expansion; the spin enables each company to allocate capital to its own priorities.