Flex Posts Record Revenue Growth Driven by Axiom Spin-Off Unit
Flex recorded 24.8% sales growth for the quarter ended September 25, 2026, driven by its Cloud and Power Infrastructure unit, ahead of its planned 2027 separation into Axiom.
Flex Ltd. delivered its fastest sales increase in ten years during the quarter that concluded on September 25, 2026. Sales grew 24.8% over the period, significantly topping the company's ten-year quarterly average growth rate of 3.6%. The performance slightly surpassed its prior ten-year peak of 24.7% set in September 2022 and marked the eighth consecutive quarter of year-over-year revenue gains.
The primary catalyst behind the expansion was the Cloud and Power Infrastructure segment, which generated a 54% revenue increase during the period. Company management credited this performance to sustained momentum in cloud, cooling, and power applications. The unit accounted for 23.7% of Flex's total sales in fiscal 2026, up from 18.6% in the prior year.
Flex is actively moving forward with plans to spin off the Cloud and Power Infrastructure division into an independent publicly traded company named Axiom Solutions International. Axiom is expected to trade on the Nasdaq under the ticker AXM and will be led by Flex Chief Executive Officer Revathi Advaithi. Management anticipates finalizing the separation in the first quarter of calendar 2027, subject to customary conditions, with a Form 10 registration statement already submitted to the SEC.
For the second quarter of fiscal 2027, the Cloud and Power Infrastructure business recorded $2.5 billion in revenue and $268 million in adjusted operating income, resulting in an operating margin of 10.7%. Leadership anticipates the segment's full-year revenue to expand between 75% and 85%, though full-year corporate projections do not yet incorporate the planned divestiture.
Following the separation, Flex will retain its Regulated Manufacturing Solutions and Integrated Technology Solutions segments. The two divisions generated combined revenue growth of 16% in the recent quarter, lifted by strength in communications. Management forecasts combined annual sales growth of 8% to 11% for these continuing units in fiscal 2027.