Flex plans spin-off of data center power and cooling business as CPI segment targets 65% to 75% growth in fiscal 2027

Flex outlined plans for a spin-off of its Compute, Power and Infrastructure (CPI) segment into a new company focused on data center thermal architecture, electrical infrastructure and cooling infrastructure. The remaining Flex business is positioned as a $22 billion revenue platform serving healthcare, industrial, automotive, communications and lifestyle markets.

The CPI segment expects growth of 65% to 75% in fiscal 2027 and 80% or more in fiscal 2028, with about 90% of fiscal 2027 expected revenue already booked. Power business growth is expected to run above overall CPI growth at about 75% or higher in fiscal 2027.

Flex guided to peak capital investment of $1.4 billion to $1.6 billion in fiscal 2027 (around 5% of revenue), with incremental spending focused on securing power, capacity, footprint and cooling infrastructure for awarded business. The company views fiscal 2027 as the peak year for CapEx based on currently awarded programs.