01—Abstract
Summary
Summary of the 10-K filed May 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Flex Ltd. (FLEX) reported fiscal year 2026 results demonstrating continued revenue growth, driven by a significant 38%a increase in its Cloud and Power Infrastructure (CPI) segment, signaling strong demand in data center and AI-related markets.
Overall net sales grew 8%b year-over-year. The company has strategically reorganized into three reportable segments: Integrated Technology Solutions (ITS), Regulated Manufacturing Solutions (RMS), and Cloud and Power Infrastructure (CPI). A pivotal announcement was the company's intention to separate its CPI segment into a new, independent publicly traded company, targeting completion in the first quarter of calendar 2027.
This strategic move aims to unlock value by allowing each business to focus on its distinct market dynamics and growth opportunities. Despite broad-based revenue growth and improved gross margins, driven by operational efficiencies and a favorable product mix in higher-margin businesses, Flex faces ongoing market complexities.
These include geopolitical uncertainty, supply chain disruptions (though component shortages have largely subsided), and the need for continuous investment in technological advancements, particularly within the rapidly evolving CPI segment. The company is actively managing its portfolio and operations to navigate these challenges, with a strong emphasis on its global scale, diverse customer relationships, and commitment to sustainability.
02—Key points
Key Highlights
- Announced intention to separate the Cloud and Power Infrastructure (CPI) segment into an independent public company, expected in Q1 2027.
- Achieved 8% year-over-year net sales growth, reaching $27.9 billion in fiscal year 2026.
- CPI segment experienced robust 38% growth, driven by demand in Cloud & Cooling and Power businesses, indicating strong performance in data center and AI infrastructure.
- Maintained a diverse customer base with the ten largest customers accounting for 45% of net sales, and no single customer exceeding 10% of revenue.
- Reported improved gross profit margin to 9.2% from 8.4% in the prior year, attributed to a favorable product mix and operational efficiencies.
- Recognized $51 million in asset impairments, inventory write-downs, and other charges due to a missile strike on its Ukraine facility in August 2025, which disrupted operations but was managed through contingency plans.
- Shareholder value creation continues, with the company repurchasing $944 million of its ordinary shares during fiscal year 2026 and retaining $1.1 billion available under its current repurchase authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Flex Ltd. kept $0.03.
- Revenue$27.91B100.0%
- Cost of revenue−$25.35B90.8%
- Gross profit$2.57B9.2%
- Operating costs−$1.20B4.3%
- Operating income$1.37B4.9%
- Interest, other & tax−$488.0M1.7%
- Net income$880.0M3.2%
Where FY2026 revenue went
$27.91B- Cost of revenue: $25.29B, 91% of revenue
- Net income: $880.0M, 3.2% of revenue
- SG&A: $1.05B, 3.8% of revenue
- Other operating costs: $206.0M, 0.7% of revenue
- Interest, other & tax: $488.0M, 1.7% of revenue
Kept 3.2% as net incomeNet income $880.0M · 3.2%Other operating costs $206.0M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed May 20, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $27.91B$25.81B | +8.1% |
| Cost of Revenue | $25.29B$23.58B | +7.2% |
| Gross Profit | $2.57B$2.16B | +18.9% |
| SG&A Expenses | $1.05B$904.00M | +16.4% |
| Operating Income | $1.37B$1.17B | +17.0% |
| Interest Expense | $197.00M$185.00M | +6.5% |
| Net Income | $880.00M$838.00M | +5.0% |
| EPS (Basic) | $2.37$2.14 | +10.7% |
| EPS (Diluted) | $2.33$2.11 | +10.4% |
| Shares Outstanding (Basic) | 371.00M391.00M | −5.1% |
| Shares Outstanding (Diluted) | 378.00M398.00M | −5.0% |
05—Questions
Frequently Asked Questions
What is the most significant strategic move announced by Flex?
Flex announced its intention to separate its Cloud and Power Infrastructure (CPI) segment into a new, independent publicly traded company. This spin-off is targeted for completion in the first quarter of calendar 2027 and aims to allow each business to focus on its respective growth strategies and unlock value for shareholders.
How did Flex perform financially in fiscal year 2026?
Flex reported an 8% increase in net sales to $27.9 billion for fiscal year 2026. The Cloud and Power Infrastructure (CPI) segment was a key driver, with sales growing 38%. Gross profit also increased, with margins improving to 9.2%, driven by better product mix and operational efficiencies.
What are the main risks Flex highlighted in its filing?
Key risks include global economic conditions and geopolitical uncertainty, potential disruptions from the planned spin-off, trade restrictions and tariffs, customer order cancellations and demand variability, supply chain disruptions, and risks related to the development and use of AI. The company also noted specific risks related to the missile strike on its Ukraine facility.
How is Flex structured and how has it changed?
Flex reorganized its reporting structure into three operating and reportable segments: Integrated Technology Solutions (ITS), Regulated Manufacturing Solutions (RMS), and Cloud and Power Infrastructure (CPI). This change reflects the growth of its data center-related businesses and the strategic intent to spin off the CPI segment.
06—Continue