Flex Ltd.

Flex Ltd. is a Singaporean-American multinational manufacturing company, recognized as a global leader in design, engineering, and manufacturing services, particularly within the electronics manufacturing services (EMS) and original design manufacturing (ODM) sectors. The company is the world's third-largest global EMS and ODM provider by revenue. Its mission is to leverage its expertise and global reach to create exceptional products that positively impact the world. While legally domiciled in Singapore, Flex maintains its operational headquarters in Austin, Texas, U.S.

Flex operates through two primary segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment caters to markets such as Communications, Enterprise, and Cloud (including data infrastructure and telecommunications), Lifestyle (appliances, smart living), and Consumer Devices (smartphones, wearables). The FRS segment focuses on Automotive (compute platforms, power electronics), Health Solutions (medical devices, drug delivery), and Industrial markets (automation, energy, critical power). The company offers end-to-end services, encompassing design and engineering, supply chain management, advanced manufacturing, value-added fulfillment, logistics, and aftermarket support.

Led by CEO Revathi Advaithi since February 2019, Flex continues to expand its market positioning and capabilities. Recent strategic initiatives include an expanded partnership with Teradyne Robotics in April 2026 to scale intelligent automation and a U.S. manufacturing collaboration with AMD in March 2026 to produce AI infrastructure platforms at its Austin facility. In March 2026, Flex also announced an agreement to acquire Electrical Power Products (EP²) for approximately $1.1 billion, further strengthening its Critical Power portfolio. The company has been recognized as one of the 2026 World's Most Ethical Companies® for the fourth consecutive year and was named among Forbes' Most Trusted Companies in America in 2026.

Latest updates

Flex to Spin Off Cloud and Power Infrastructure Unit as Standalone Public Company

Event summary

  • Flex plans to spin off its Cloud and Power Infrastructure segment into a new independent publicly traded company, targeting completion in Q1 2027.
  • Revathi Advaithi will become CEO of the new company (SpinCo) and serve as Chairman of Flex for a transitional period.
  • Michael Hartung will be named CEO of Flex post-spin-off.
  • SpinCo is expected to generate 65%-75% revenue growth in fiscal 2027, accelerating to 80%+ in fiscal 2028.
  • Flex (excluding SpinCo) is positioned for low-to-mid-single-digit growth with continued margin expansion.

The big picture

Flex's spin-off reflects a broader industry trend of companies separating high-growth digital infrastructure units from traditional manufacturing businesses to unlock value. The move positions SpinCo to capitalize on secular trends like AI adoption and electrification, while Flex aims to sharpen its focus on advanced manufacturing solutions. The transaction underscores the strategic importance of distinct capital allocation and governance structures in driving long-term shareholder value.

What we're watching

Execution Risk
Whether Flex can successfully separate the businesses without operational disruptions or loss of key personnel.
Growth Trajectory
The pace at which SpinCo can achieve its projected revenue growth targets in the high-growth digital infrastructure market.
Strategic Focus
How the separation will impact Flex's ability to optimize its portfolio and expand margins in its remaining segments.

Flex Posts Strong Fiscal 2026 Results, Plans Cloud Segment Spin-Off

Event summary

  • Flex reported Q4 net sales of $7.5 billion, up 17% YoY, and full-year net sales of $27.9 billion, up 8% YoY.
  • GAAP operating margin improved to 5.0% in Q4 and 4.9% for the full year, with adjusted operating margin reaching 6.7% and 6.3% respectively.
  • Full-year GAAP EPS was $2.33, with adjusted EPS at $3.30.
  • Flex announced plans to spin off its Cloud and Power Infrastructure segment into an independent, publicly traded company.
  • Guidance for fiscal 2027 projects net sales of $32.3 billion to $33.8 billion, an 18% increase at the midpoint.

The big picture

Flex's strong fiscal 2026 results reflect its strategic focus on targeted acquisitions and capital investments, particularly in AI and data center solutions. The planned spin-off of its Cloud and Power Infrastructure segment underscores a broader industry trend of companies streamlining operations to enhance shareholder value. Flex's ability to navigate geopolitical risks and maintain operational efficiency will be critical in the coming year.

What we're watching

Spin-Off Execution
The success of the Cloud and Power Infrastructure segment spin-off will depend on seamless execution and maintaining customer relationships.
Market Demand
Whether Flex can sustain its growth trajectory amid macroeconomic uncertainties and geopolitical risks.
Operational Efficiency
The pace at which Flex can continue improving its operating margins while managing restructuring and impairment charges.

Flex Acquires EP² to Bolster Critical Power Capabilities

Event summary

  • Flex completed the acquisition of Electrical Power Products (EP²) on May 4, 2026.
  • EP² specializes in engineered-to-order electrical power control and protection systems.
  • The acquisition strengthens Flex's Critical Power portfolio and adds U.S. manufacturing scale.
  • EP²'s engineering expertise and utility-grade solutions enhance Flex's power infrastructure offerings.
  • EP²'s employees and facilities will be integrated into Flex's Embedded and Critical Power business.

The big picture

Flex's acquisition of EP² aligns with broader industry trends in grid modernization, electrification, and data center demand. The deal enhances Flex's ability to deliver customized power control and protection solutions, supporting long-term growth driven by U.S. reshoring initiatives. The strategic move positions Flex to capitalize on the increasing need for resilient electrical infrastructure.

What we're watching

Integration Challenges
How Flex will integrate EP²'s engineering expertise and manufacturing capabilities into its existing operations.
Market Expansion
Whether the acquisition will strengthen Flex's presence in the utility and power generation markets.
Strategic Alignment
The pace at which Flex can leverage EP²'s solutions to meet growing demand for resilient electrical infrastructure.

Flex Deepens Robotics Partnership with Teradyne, Expanding Automation Manufacturing

Event summary

  • Flex and Teradyne Robotics are expanding a 20-year partnership initially focused on semiconductor test equipment into intelligent automation.
  • Flex will manufacture key components for Teradyne Robotics' Universal Robots (UR) and Mobile Industrial Robots (MiR) brands.
  • Flex will also deploy Teradyne Robotics' solutions within its own manufacturing facilities, creating a closed-loop feedback system.
  • The collaboration aims to accelerate the adoption of robotics technologies across industries including electronics, industrial equipment, and data center infrastructure.

The big picture

This partnership represents a strategic shift for both Flex and Teradyne, leveraging Flex's global manufacturing footprint and supply chain expertise to accelerate the adoption of Teradyne Robotics' solutions. The move highlights the increasing demand for intelligent automation across industries facing complexity and scale challenges, and underscores the trend of manufacturers seeking integrated solutions that combine hardware, software, and services. The 20-year history between the two companies provides a foundation for rapid integration and expansion into new markets.

What we're watching

Execution Risk
The success of this partnership hinges on Flex's ability to integrate Teradyne Robotics' solutions into its diverse manufacturing environments and scale component production effectively, which could expose operational vulnerabilities.
Technology Adoption
The pace at which Flex's real-world deployment of Teradyne Robotics' solutions generates actionable feedback for product development will determine the partnership's long-term competitive advantage.
Competitive Landscape
How Teradyne Robotics and Flex’s combined offering will compete against larger, more established automation providers, particularly in securing new customer deployments, will be a key indicator of success.

Flex Schedules Earnings Call Amid Data Center Growth Push

Event summary

  • Flex will release its fourth quarter and fiscal year 2026 financial results on May 6, 2026.
  • The earnings call is scheduled for 7:30 AM CT / 8:30 AM ET on May 6, 2026.
  • The webcast will be available on Flex's investor relations website: investors.flex.com.
  • Flex operates in 30 countries and provides manufacturing and supply chain solutions.

The big picture

Flex's emphasis on data center solutions reflects the broader surge in demand for AI infrastructure. The company is positioning itself as a key manufacturing partner in this space, but success hinges on navigating competitive pressures and geopolitical risks inherent in a globalized supply chain. The upcoming earnings call will provide insight into whether Flex can capitalize on this opportunity while maintaining financial stability.

What we're watching

Growth Dependency
The company's stated focus on accelerating data center deployment highlights a growing dependency on this specific market segment, making its performance a key indicator of overall health.
Margin Pressure
Increased competition in the data center solutions space may compress margins, requiring Flex to demonstrate pricing power and operational efficiencies to maintain profitability.
Geopolitical Risk
With a global footprint spanning 30 countries, Flex's results will be sensitive to ongoing geopolitical instability and potential disruptions to supply chains.

Flex to Acquire EP² for $1.1 Billion, Bolstering Critical Power Capabilities

Event summary

  • Flex (NASDAQ: FLEX) is acquiring Electrical Power Products (EP²) for approximately $1.1 billion, including $0.1 billion in anticipated tax benefits.
  • EP² generates roughly $323 million in annual revenue and boasts a mid-to-high teens adjusted EBITDA margin.
  • The acquisition is expected to be accretive to Flex's adjusted EPS in the first full fiscal year after closing, anticipated in Q1 2027.
  • EP² operates a significant manufacturing facility in Des Moines, Iowa, and serves utility, power generation, and industrial customers.
  • Flex CEO Revathi Advaithi stated the deal will expand Flex's role in modernizing the U.S. electrical grid.

The big picture

Flex's acquisition of EP² represents a strategic move to deepen its presence in the critical power sector, a market driven by grid modernization, electrification, and reshoring initiatives. The $1.1 billion deal, while sizable, aligns with Flex's broader strategy of expanding its capabilities in high-growth, margin-accretive end markets. This acquisition positions Flex to capitalize on the increasing demand for engineered-to-order power solutions, particularly within the U.S. industrial base.

What we're watching

Integration Risk
The success of the acquisition hinges on Flex's ability to effectively integrate EP²'s operations and engineering talent, particularly given the company's Midwest manufacturing footprint, without disrupting existing customer relationships.
Growth Sustainability
Whether EP² can sustain its projected double-digit organic growth rate under Flex's ownership will depend on Flex's ability to leverage its global scale and resources to expand into new markets and applications.
Regulatory Scrutiny
Given the strategic importance of electrical power infrastructure, the acquisition may face increased scrutiny from regulatory bodies, potentially delaying or complicating the closing process.

Flex Partners with NVIDIA on 800V Power Rack to Address AI Infrastructure Bottlenecks

Event summary

  • Flex and NVIDIA have jointly developed an 800 VDC Power Rack designed for NVIDIA’s Vera Rubin platform.
  • The new power rack addresses limitations of existing infrastructure unable to support megawatt-scale AI workloads.
  • The architecture increases available compute power per rack from approximately 125 kW to up to 880 kW when paired with future GPU platforms.
  • Flex’s global manufacturing network, including North American capabilities, will support production and deployment.
  • The product will be showcased at NVIDIA GTC 2026, March 16–19.

The big picture

The announcement highlights the escalating power demands of AI workloads and the need for specialized infrastructure to support them. Flex’s partnership with NVIDIA positions the company to capitalize on this trend, expanding its AI Infrastructure Platform and offering a solution that avoids costly retrofits for existing data centers. This move underscores the increasing complexity and specialization required within the data center power infrastructure market.

What we're watching

Adoption Rate
The speed at which data centers adopt 800 VDC architectures will dictate Flex’s revenue growth and influence NVIDIA’s Vera Rubin platform success. Early adopters will likely be hyperscalers and large enterprises with significant AI investments.
Competitive Landscape
Other power infrastructure providers will likely respond to this development, potentially introducing competing solutions or partnering with alternative GPU vendors, creating pricing pressure and impacting Flex’s margins.
Supply Chain
Flex’s ability to maintain a resilient and geographically diverse supply chain will be critical to meeting demand and avoiding disruptions, especially given ongoing geopolitical uncertainties.

Flex Partners with NVIDIA to Expedite AI Factory Deployments with Modular Designs

Event summary

  • Flex has launched reference designs for NVIDIA’s Omniverse DSX Blueprint, aimed at accelerating the deployment of large-scale AI infrastructure.
  • The designs incorporate 800 VDC power racks, high-density IT racks, advanced liquid cooling, and critical power infrastructure.
  • Flex claims these modular solutions can reduce deployment timelines by up to 30% compared to traditional construction.
  • Flex leverages a global footprint of over 18 million square feet across 35+ locations in the Americas, including a 400,000-square-foot facility in Dallas.
  • The collaboration focuses on addressing power, heat, and scale challenges associated with rapidly expanding AI infrastructure needs.

The big picture

The rapid expansion of AI models is creating unprecedented demand for specialized infrastructure, pushing data center operators to seek faster and more scalable deployment solutions. Flex’s partnership with NVIDIA to offer prefabricated, modular designs addresses this urgent need, positioning the company to capitalize on the growing market for AI-optimized infrastructure services. This move signals a broader trend towards factory-built data centers and a shift away from traditional construction methods to accelerate AI capacity expansion.

What we're watching

Adoption Rate
The success of this partnership hinges on hyperscalers and data center operators adopting Flex’s modular designs over existing construction methods; early deployments will be key indicators of broader acceptance.
800 VDC Transition
The shift to 800 VDC power architectures is still nascent; Flex’s ability to drive adoption and demonstrate its benefits will influence the broader industry’s timeline for this transition.
Competitive Landscape
While Flex highlights its scale, other infrastructure providers are likely developing similar modular solutions, and the competitive dynamics around AI infrastructure deployment will intensify.

Broadcom, Flex Partner on Liquid Cooling for AI Chips Amid Power Density Surge

Event summary

  • JetCool, a Flex company, is collaborating with Broadcom to develop liquid cooling solutions for next-generation AI XPUs.
  • The cooling solution enables sustained multi-kilowatt ASIC operation at 4 W/mm² heat flux density.
  • Flex will leverage its global manufacturing scale to support high-volume production of the cooling solutions.
  • The partnership aims to address the increasing power density challenges in AI chip design.

The big picture

The collaboration highlights the growing importance of thermal management in AI chip design, as power densities exceed the capabilities of traditional air cooling. This partnership represents a strategic move by both companies to address this challenge and secure a position in the expanding hyperscale AI infrastructure market. The ability to efficiently dissipate heat will increasingly dictate the performance and reliability of AI systems, making thermal solutions a key differentiator.

What we're watching

Thermal Limits
The success of this partnership hinges on JetCool’s ability to consistently deliver cooling solutions that can keep pace with Broadcom’s increasingly power-hungry chip designs, as power densities are expected to continue rising.
Manufacturing Scale
Flex’s manufacturing capabilities will be critical; any bottlenecks in their production capacity could delay Broadcom’s AI XPU deployments and impact their competitive positioning.
Ecosystem Dynamics
Broadcom’s stated commitment to a broad ecosystem of partners suggests JetCool’s position isn’t guaranteed; the company must continually innovate to maintain its preferred status within Broadcom’s thermal architecture strategy.

Flex to Manufacture AMD AI GPUs in U.S., Expanding Domestic AI Infrastructure

Event summary

  • Flex will manufacture AMD Instinct MI355X GPUs at its Austin, Texas facility, with volume production expected next quarter.
  • The collaboration extends to future generations of AMD Instinct platforms, supporting large-scale AI deployments.
  • Flex is manufacturing the complete AMD Instinct platform, including GPUs, PCIe interfaces, memory, and interconnect fabric.
  • Flex's Austin facility spans 1.4 million square feet and is part of a larger U.S. footprint of over 7 million square feet.

The big picture

This collaboration represents a strategic shift towards onshoring AI infrastructure manufacturing, driven by concerns over supply chain security and geopolitical tensions. AMD's reliance on Flex for a key component of its AI platform reduces its dependence on concentrated manufacturing regions and strengthens its position in the rapidly expanding AI market. The move also provides Flex with a significant revenue stream and reinforces its role as a critical manufacturing partner for leading technology companies.

What we're watching

Execution Risk
The success of this collaboration hinges on Flex's ability to ramp production volumes and maintain quality standards for AMD's complex GPU platforms, potentially impacting both companies' revenue forecasts.
Geopolitical Shifts
Further government incentives or trade policies related to domestic semiconductor manufacturing could significantly influence the scale and scope of Flex's AMD partnership and similar initiatives.
Competitive Landscape
The agreement highlights AMD's efforts to diversify its manufacturing base; how this impacts its relationships with existing contract manufacturers and competitors like TSMC warrants monitoring.

Flex to Present at Raymond James Investor Conference

Event summary

  • Flex leadership will present at the Raymond James 47th Annual Institutional Investors Conference.
  • The conference takes place on March 2, 2026, with Flex’s presentation scheduled for 7:05 a.m. CT / 8:05 a.m. ET.
  • A live webcast and replay will be available on Flex’s investor relations website: investors.flex.com.
  • Michelle Simmons, Senior VP of Global Investor Relations and Public Relations, is the contact for media, investors, and analysts.

The big picture

Flex's participation in the Raymond James conference signals an effort to engage with institutional investors and reinforce its strategic positioning within the manufacturing and technology sectors. The conference, attended by a significant number of institutional investors managing trillions in assets, provides a platform to articulate Flex’s growth strategy, particularly its focus on data center solutions supporting the AI boom. This appearance is a standard practice, but the content shared will be crucial in shaping investor perception of Flex's execution capabilities and long-term prospects.

What we're watching

Growth Trajectory
The presentation will likely highlight Flex’s efforts in data center solutions, and the market’s reaction will reveal investor confidence in their ability to capitalize on AI-driven infrastructure demand.
Margin Pressure
Given the competitive landscape in contract manufacturing, the conference call should be scrutinized for any discussion of pricing pressures and their impact on Flex’s margins.
Geopolitical Risk
With a global footprint, Flex’s commentary on supply chain stability and potential disruptions stemming from geopolitical events will be a key indicator of future performance.
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