Flex (FLEX) reported second-quarter fiscal 2027 net sales of $8.5 billion, up 25% from a year earlier, accelerating from 21% year-over-year growth in the first quarter.

The electronics manufacturing services company also raised its outlook for the rest of the year. It now expects fiscal 2027 net sales of $34.9 billion to $35.9 billion, or 27% growth at the midpoint, versus a prior range of $33.7 billion to $35.2 billion.

GAAP operating income was $414 million, or a 4.9% margin. Adjusted operating income was $607 million, a 7.1% margin, compared with 6.7% in the first quarter. GAAP earnings were $0.70 a share. Adjusted earnings were a record $1.18 a share.

Chief Executive Revathi Advaithi said the company continues to execute from a position of strength while advancing a planned spin-off of its Cloud and Power Infrastructure segment. She said the acquisition of EPC Power further completes the company’s end-to-end power portfolio and will be immediately accretive in fiscal 2027, and that unveiling the Axiom name and anticipated leadership marks another step toward creating two focused companies.

Legal and other charges of $110 million in the quarter included approximately $91 million related to the planned Cloud and Power Infrastructure spin-off and $19 million of acquisition costs.

Cash provided by operating activities was $501 million. Free cash flow was $261 million, up from $41 million in the first quarter. Cash and cash equivalents were $3.08 billion as of September 25, 2026, versus $2.39 billion at March 31, 2026.

For the third quarter of fiscal 2027, Flex guides to net sales of $8.87 billion to $9.17 billion, or 28% growth at the midpoint, versus a prior guide of $7.95 billion to $8.25 billion, or 19% at the midpoint. Adjusted operating income is expected at $685 million to $715 million. Adjusted EPS is expected at $1.19 to $1.25, or 40% growth at the midpoint. Interest and other is expected at approximately $120 million. The adjusted income tax rate is expected at 21%. Weighted average shares outstanding are expected at approximately 375 million.

Updated fiscal 2027 adjusted operating margin guidance is 7.6% to 7.8%, versus a prior 7.0% to 7.2%. Updated fiscal 2027 adjusted EPS guidance is $4.84 to $5.16, or 52% growth at the midpoint, versus a prior $4.42 to $4.74, or 39% at the midpoint. The company said the updated full-year figures reflect expected results for the full fiscal year, do not give effect to the planned spin-off, and include contributions from recent acquisitions closed subsequent to September 25, 2026.

The company described itself as the manufacturing partner of choice that helps leading brands design, build, and manage products, with a global footprint spanning 30 countries. In the AI era, it said it is helping customers accelerate data center deployment by solving power, heat, and scale challenges through power and cooling technology and scalable IT infrastructure solutions.