Flex said on May 5, 2026, that its board unanimously approved a plan to spin off its Power and Cloud portfolio, setting up two independent, publicly traded companies. Chief Executive Revathi Advaithi called the move the next step in a deliberate seven-year transformation.
The separation would create SpinCo, a company Flex says will be a global leader in critical digital infrastructure, with end-to-end power and thermal management technologies for AI data centers and mission-critical applications. Flex said the new company is expected to ride long-duration trends tied to electrification, rising power intensity and more complex infrastructure, and it is targeting SpinCo to produce about 65% to 75% revenue growth in fiscal 2027 before accelerating to more than 80% in fiscal 2028.
SpinCo would bring a globally integrated engineering, manufacturing and service model spanning 22 engineering and manufacturing centers. That footprint is meant to give the business scale from the start, while Flex remains in place as a leading global manufacturing partner organized into Integrated Technology Solutions and Regulated Manufacturing Solutions after the split.
Advaithi said the deal gives both sides a clearer mission. She said the move would let SpinCo build and scale the products and digital infrastructure that demanding AI workloads depend on, while giving Flex a sharper focus on advanced manufacturing for diversified industries. She added that each company should have the strategic clarity and dedicated leadership needed to deliver strong results for customers and shareholders.
The timing matters because Flex is not turning into a pure software or infrastructure play. The company is carving out one faster-growing portfolio while keeping its manufacturing base intact, a balance that suggests management believes the parts will be worth more apart than together. Advaithi said she was excited to be part of the journey for both companies.
What comes next is the hard part: execution. Flex has approved the plan, but the companies still need to be separated into distinct public businesses, and the market will be watching whether SpinCo can hit the aggressive growth targets Flex has set for fiscal 2027 and fiscal 2028.