Markets

Flex Stock Surges 6%, Adding $1.8 Billion, After It Raises Full-Year Outlook

The contract manufacturer lifted fiscal 2027 sales and earnings guidance alongside record adjusted quarterly profit of $1.18 a share.

Flex shares climbed 5.75% to $88.14 in Wednesday trading, as of 9:53 a.m. ET, adding $1.8 billion in market value, after the contract manufacturer reported second-quarter net sales of $8.5 billion, up 25% from a year earlier, and raised its full-year forecast.

Record profit, higher guidance

Adjusted earnings hit a record $1.18 a share, the company said. For fiscal 2027, Flex now expects net sales of $34.9 billion to $35.9 billion, up from $33.7 billion to $35.2 billion, and adjusted earnings of $4.84 to $5.16 a share, up from $4.42 to $4.74.

The outlook excludes the planned spin-off of its Cloud and Power Infrastructure segment. For the third quarter, Flex guided adjusted earnings to $1.19 to $1.25 a share.

The CFO put the guidance increase at $950 million, with half of it coming from the EPC Power deal.

A manufacturer with a power business

Flex designs, builds and manages products for other companies, and also sells power and cooling products. Its customers span data center, healthcare, industrial, automotive, communications and lifestyle markets, and it had about 150,000 employees, including contractors, as of March 31, 2026.

In its annual report, the company reported revenue of $7.5 billion, up 16.9% from the prior year.

Up 38% this year, off its peak

The shares were on pace for their biggest one-day gain since Oct. 27 and a third straight daily gain. They were up about 38% this year at Tuesday's close, against about 13% for the S&P 500.

The stock had still fallen 27% over the previous month and sat 49% below its highest close of the past year, set on June 30.

The spin-off of the Cloud and Power Infrastructure segment, now named Axiom, is the company's next major milestone.