Flex outlines $20 billion to $21 billion Axiom revenue outlook for 2027

Flex (FLEX) gave a 2027 revenue outlook of $20 billion to $21 billion for Axiom Solutions International, the cloud and power unit it plans to spin off as an independent public company.

Shares fell 2.7% at 3:59 p.m. ET, from a $78.17 close.

Flex presented the figures at an Innovation Day in Austin, Texas. The spin-off is on track to complete in calendar Q1 2027, and Axiom would be listed on Nasdaq under AXM.

Revenue is estimated at about $9.7 billion in calendar 2026 and outlined at $37 billion or more by 2030, growth of 20% or more a year from 2027 to 2030.

Power is estimated at about $3.5 billion in 2026 and outlined at $6 billion to $6.3 billion for 2027. Cloud and Cooling is estimated at about $6.2 billion in 2026, with a 2027 outlook of $14 billion to $14.7 billion.

Adjusted EBITDA margin is estimated at about 11% in 2026 and outlined at 13% to 14% in 2027, including about 1.25% of revenue in standalone corporate costs. The company expects a high-teens margin by 2030.

Capital expenditures are expected to fall from about 10% of revenue in 2026 to about 6% in 2027, and to 3% to 4% by 2030. Free cash flow conversion is outlined as negative in 2026, 40% or more in 2027 and 90% or more by 2030.

Axiom is also raising $2.0 billion of preferred equity. GC Venture XIII (ASI), L.P. and other investors agreed to buy 200,000 shares of Axiom Series A Convertible Preferred Stock in a private placement, paying 6% in cash or 7% in kind. The company said proceeds would be used to reduce debt.

Flex's fiscal 2027 outlook is organic revenue growth of high-single-digit to low-double-digit and an adjusted operating margin of 5.7% to 5.9%. Fiscal 2029 figures are direction, not guidance, with an adjusted operating margin of 7% or more.