Flex Ltd is expected to report second-quarter revenue of $7.58 billion and an adjusted EPS of $0.93, with the current stock price of $127.94 trading at a significant discount to the average analyst price target of $170.70. The primary story for investors is the planned spin-off of the Cloud and Power Infrastructure (CPI) segment, which is being positioned as a standalone high-growth AI infrastructure play.
This division is the company's primary growth engine, with management targeting 65% to 75% revenue growth for fiscal 2027 fueled by demand for liquid cooling and power systems from hyperscale data centers. Market sentiment has been further bolstered by the company's recent inclusion in the S&P 500 and an expanded AI supercomputer manufacturing partnership with Cerebras Systems.