$FLEX · FLEX LTD.
Flex filed an 8-K (Item 7.01) announcing an Innovation Day on November 10, 2026, presenting details on the planned spin-off of its Cloud and Power Infrastructure segment into Axiom Solutions International. The presentation outlines post-spin Flex targets: high-value markets growing from 24% of revenue in FY26 to 35-40% by FY29, and adjusted operating margin rising from 5.5% to 7%+. Axiom will focus on compute, power, and thermal management for AI data centers.
- Spin-off of Cloud and Power Infrastructure segment into Axiom targeted for calendar Q1 2027.
- GC Venture XIII and other investors agreed to buy 200,000 shares of Axiom Series A Convertible Preferred Stock.
- Post-spin Flex FY27 adjusted operating margin guided at 5.7-5.9%, rising to 7%+ by FY29.
- High-value markets projected to grow from 24% of FY26 revenue to 35-40% by FY29.
- FY26 net sales of $21B across RMS and ITS segments, with 110k employees and 30 countries.
Shares rose 12.03% to $78.17 in the regular session, with extended-hours last trade at $75.64 (-3.24% vs close). The move reflects investor enthusiasm for the Axiom separation and post-spin margin expansion targets.
Flex is splitting into two focused public companies, with Axiom capturing AI data center infrastructure demand while post-spin Flex targets meaningful margin expansion.
The spin-off mirrors Flex's prior Nextracker separation, positioning Axiom to compete in AI data center power and cooling alongside peers in critical digital infrastructure.
Spin-off may not qualify for tax-free treatment, could face regulatory approval delays, and risks management distraction or employee departures during the pendency period.