Flex Q1 FY2027: Revenue Jumps 21% to $7.9B, EPS $0.76; EPP Acquisition Closed
FLEX has more than doubled off its 52-week low of $47.83.
Summary
Flex reported Q1 FY2027 revenue of $7.9 billion (+21% YoY) and net income of $285 million ($0.76 diluted EPS). The quarter included the $1.2B EPP acquisition and a $46M divestiture gain, while spin-off costs for the CPI segment reached $53M.
Key Events · Earnings and Guidance · FLEX
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Revenue Surges 21% to $7.9B
Net sales increased $1.4 billion year-over-year, with CPI up 35%, ITS up 20%, and RMS up 12%. Growth was broad-based, driven by demand in data center, communications, and industrial markets.
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Net Income Jumps 48% to $285M
Diluted EPS of $0.76 compared to $0.50 a year ago. Gross margin improved 70 bps to 9.4%, and operating income rose 26% to $392 million.
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$1.2B EPP Acquisition Closed
The acquisition of Electrical Power Products, Inc. was completed on May 1, 2026, adding $478 million in intangible assets and $473 million in goodwill to the CPI segment.
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$1.45B Term Loan Finalized
Flex entered a senior term loan in April 2026 to finance the EPP acquisition. The loan was syndicated in May, with $1.38 billion transferred to new lenders, and matures November 2027.
Analysis · FLEX · Manufacturing
Flex kicked off fiscal 2027 on a strong note, with revenue climbing 21% year-over-year to $7.9 billion, fueled by broad-based growth across all segments—most notably Cloud and Power Infrastructure (CPI). Net income surged 48% to $285 million, translating to diluted EPS of $0.76. The quarter also marked the closing of the $1.2 billion Electrical Power Products acquisition, which bolsters CPI's scale, and a $46 million gain from a divestiture. To fund the acquisition, the company finalized a $1.45 billion term loan. These results unfold against the planned spin-off of the CPI segment, which incurred $53 million in related costs during the quarter. Additionally, the filing details updated executive compensation plans and new equity award agreements, underscoring ongoing governance and retention efforts ahead of the separation.
At the time of this filing, FLEX was trading at $113.43 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $41.7B. The 52-week trading range was $47.83 to $166.86. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.