AUSTIN, Texas, May 6, 2026, 08:10 CDT
Flex is carving out its Cloud and Power Infrastructure unit into a new standalone public company, the latest move meant to let investors more easily track its slice of the AI data center and power-gear market. For now, the spinoff is called SpinCo. Revathi Advaithi, Flex’s current CEO, is set to take the helm at SpinCo, while Michael Hartung, the company’s president, will step in as chief executive at what’s left of Flex.
AI data centers draw significantly higher power and cooling than legacy server sites, making timing crucial. Early Wednesday, Flex was quoted at $123.84 in premarket trading on MarketScreener—a 28.4% surge after closing Tuesday at $96.45, up 5.0%.
The spin-off came alongside solid numbers. Flex posted fiscal Q4 net sales of $7.5 billion, marking a 17% increase from the same period last year. For the full fiscal year, net sales reached $27.9 billion, up 8%. Looking ahead, the company projected fiscal 2027 revenue between $32.3 billion and $33.8 billion, not including the pending separation.
SpinCo’s lineup includes power distribution, thermal management—think cooling systems and controls to stop servers from overheating—and integrated infrastructure for AI data centers or other mission-critical sites. Flex is going after revenue growth of 65% to 75% for SpinCo in fiscal 2027, and says it’s aiming for over 80% in fiscal 2028.
Flex’s post-spin focus shifts to advanced manufacturing, targeting healthcare, industrial, automotive, communications, and lifestyle segments. According to the company, what’s left aims for low-to-mid-single-digit growth, better margins, and more cash flow once the split is done.
Advaithi described the split as a key move in Flex’s “deliberate transformation” toward a tech-centered industrial strategy. Hartung, a Flex veteran with over 20 years at the company, said he was “honored” to step in as leader for its next phase. PR Newswire
Flex is pushing further into power, closing its purchase of Electrical Power Products, or EP², on Monday. The deal brings in custom-built electrical power control and protection systems, aimed at utility, power generation, and data center clients.
Flex edges further into territory where Schneider Electric and Johnson Controls have been making headlines with investors. Schneider is setting up a Southeast Asia training center in Malaysia, responding to surging AI-related power needs across the region. Johnson Controls, for its part, bumped up its yearly profit outlook on Wednesday, citing stronger demand for cooling solutions in data centers.
Plenty of details remain under wraps. Flex hasn’t said what SpinCo brings in for revenue, its profit margins, details on debt, or how much of the new company it might hold onto. The deal still hinges on regulatory sign-off, market factors, and a hoped-for tax-free setup for shareholders. In a tax-free spin-off, investors would get shares in SpinCo without triggering an immediate U.S. federal tax hit. That’s the plan, but Flex cautioned it’s not a sure thing.
Flex has tapped Citi, PJT Partners and BofA Securities to steer the deal, aiming for a first-quarter 2027 close. Right now, investors are mostly left to value a higher-growth AI infrastructure unit that Flex insists can operate independently.
