Flex Stock Jumps 9%: Record Earnings and a 52% Guidance Raise on AI Demand

Flex stock jumped about 9% in premarket trading on Wednesday, October 28, 2026, after the manufacturing giant reported record adjusted earnings of $1.18 a share on sales of $8.49 billion and raised its full-year guidance — with adjusted earnings now expected to grow 52% at the midpoint. The move made Flex one of the morning's biggest gainers and the latest proof that the AI data-center buildout is lifting far more than chipmakers.

What happened

Flex reported second-quarter fiscal 2027 results for the quarter ended September 25, 2026, before the market opened on Wednesday. Net sales rose 24.8% from a year earlier to $8.491 billion, beating the $8.18 billion consensus estimate. Adjusted earnings per share jumped 49% to a record $1.18, beating the $1.05 consensus by more than 12%. On a GAAP basis, Flex earned $0.70 a share, up from $0.52 a year earlier, on net income of $263 million, up from $199 million.

Investors focused less on the beat itself than on what came with it. Flex raised its fiscal 2027 sales guidance to $34.9 billion to $35.9 billion, up from $33.7 billion to $35.2 billion previously — growth of 27% at the midpoint. It raised adjusted earnings guidance even harder, to $4.84 to $5.16 a share from $4.42 to $4.74, and lifted its expected adjusted operating margin to 7.6% to 7.8%. For the next quarter alone, Flex guided to sales of $8.87 billion to $9.17 billion and adjusted earnings of $1.19 to $1.25 a share.

Why it's blowing up

The engine is Flex's Cloud and Power Infrastructure segment — the business that helps hyperscalers solve the power, heat and scale problems inside AI data centers. That segment's revenue surged to $2.51 billion from $1.63 billion a year earlier, while its operating income rose 97% and its margin reached 10.7%. The part of Flex most tied to AI spending is growing fastest and earning the most.

The rest of the company grew too. Integrated Technology Solutions revenue climbed 22% to $3.31 billion, helped by AI-related demand for advanced networking infrastructure, while Regulated Manufacturing Solutions revenue rose 9% to $2.68 billion on strength in energy infrastructure and robotics. Adjusted operating margin for the whole company expanded 110 basis points to 7.1%, and Flex generated $261 million of free cash flow in the quarter.

That combination — a big beat, a much bigger guidance raise, and a direct line to AI spending — is why the stock reacted so strongly. Trading reports put the shares up about 9.4% premarket to around $91.

Key facts at a glance

Stock move: Flex shares rose about 9% in premarket trading on Wednesday, October 28, 2026.
Sales: $8.491 billion, up 24.8% year over year, versus a consensus estimate of $8.18 billion.
Adjusted earnings: A record $1.18 a share, up 49% year over year, versus a $1.05 consensus estimate.
AI segment: Cloud and Power Infrastructure revenue reached $2.51 billion, up from $1.63 billion a year earlier, with operating income up 97%.
New guidance: Fiscal 2027 sales of $34.9 billion to $35.9 billion and adjusted earnings of $4.84 to $5.16 a share, implying 52% growth at the midpoint.

The spin-off hiding in the release

Wednesday's release carried a second headline. Flex said it is advancing a planned spin-off of its Cloud and Power Infrastructure segment and unveiled Axiom as the name for the separated business. Flex also noted its acquisition of EPC Power, which it expects to be immediately accretive in fiscal 2027. Separating that business could make its value easier to see — and gives the rally a story beyond one quarter.

What's next

Flex management was scheduled to discuss the results on a conference call on Wednesday morning, October 28. The next test is delivery: third-quarter guidance assumes another step up, and the full-year outlook bakes in this quarter's stronger AI demand. Watch whether data-center orders keep flowing, how quickly the Axiom spin-off takes shape, and whether margins hold. This report is news, not a recommendation to buy, sell or hold any security.

Sources

FAQ

Why did Flex stock jump on October 28, 2026?

Flex beat sales and earnings estimates, set a record for adjusted earnings per share, and raised its full-year guidance sharply, so shares rose about 9% in premarket trading.

How much did Flex earn in the quarter?

Flex reported adjusted earnings of $1.18 a share on sales of $8.491 billion for the quarter ended September 25, 2026, with GAAP earnings of $0.70 a share.

What is driving Flex's growth?

AI data-center demand is the main driver: its Cloud and Power Infrastructure revenue rose to $2.51 billion from $1.63 billion a year earlier, with operating income up 97%.

What did Flex raise its guidance to?

Flex now expects fiscal 2027 sales of $34.9 billion to $35.9 billion and adjusted earnings of $4.84 to $5.16 a share, and it is advancing a spin-off of its cloud and power business under the name Axiom.