Flex (FLEX) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $7.9 billion, up 21% year-over-year, with record adjusted EPS of $1.00 and margin expansion across all segments; included in the S&P 500.

• Cloud and Power Infrastructure (CPI) segment grew 35% year-over-year, driven by AI infrastructure investments; spin-off planned for Q1 calendar 2027 with leadership teams in place.

• Strategic partnerships and new product launches in AI supercomputing and liquid cooling solutions announced.

• Investor Day scheduled for November 10th to provide further strategic updates.

• Strategic focus on building two distinct, growth-oriented companies to capitalize on AI-driven infrastructure demand.

Financial highlights

• Q1 revenue reached $7.9 billion, up 21% year-over-year; adjusted gross profit was $761 million, with margin improving to 9.6%.

• Adjusted operating profit was $534 million, up 35% year-over-year; adjusted operating margin at 6.7%, up 70 basis points.

• Adjusted EPS increased to $1.00, up 39% year-over-year; GAAP EPS was $0.76, up 52%.

• Free cash flow was $41 million, impacted by $24 million in one-time spin-off/separation costs.

• Cash and cash equivalents increased to $2.84 billion as of June 26, 2026.

Outlook and guidance

• FY27 revenue guidance raised to $33.7–$35.2 billion, up 23% at midpoint; adjusted operating margin projected at 7.0–7.2%.

• Adjusted EPS guidance of $4.42–$4.74, up 39% at midpoint.

• Q2 FY27 revenue expected at $7.95–$8.25 billion, up 19% at midpoint; adjusted EPS $1.00–$1.07.

• CapEx expected at $1.5–$1.6 billion; free cash flow conversion revised to ~40% including spin-off costs.

• CPI segment expected to grow 65%–75% for FY27, with power outpacing cloud; strong visibility with 90%+ booked business for next three quarters.