Flex Stock Surges 35% on Earnings Beat and Strategic Cloud Spin-Off Plan

Flex Ltd. (FLEX) shares soared 35% after reporting Q4 adjusted EPS of $0.93, an 8.1% beat, with revenue climbing 17% year-over-year to $7.5 billion. The Cloud and Power Infrastructure (CPI) segment drove growth, posting $1.8 billion in revenue—a 31% surge—and a 9.9% adjusted operating margin.

The company announced plans to spin off CPI into a standalone public entity by Q1 2027, with CEO Revathi Advaithi leading the new SpinCo. FY2027 guidance projects revenue of $32.3–$33.8 billion and adjusted EPS of $4.21–$4.51, up 32% at the midpoint, signaling confidence in AI-driven demand.

Analysts highlight Flex’s pivot as a bid to unlock shareholder value, mirroring trends in tech and crypto sectors where infrastructure plays like BTC, ETH, and SOL command premium valuations. The move echoes broader market appetite for focused, high-growth assets—a theme resonating across Coinbase, Binance, and other crypto exchanges.