--- title: "Flex's AI power segment grows 75-85% and spins off as Axiom, with Vicor's ITC case still open" description: "A record quarter and a raised fiscal 2027 guide came with the first separate outlook for the AI power business, guided to grow 75-85 percent at roughly double the margin of the rest and spinning off as Axiom, while the Vicor patent case it inherits remains open at the US International Trade Commission." publisher: "The Inference" section: "Data Center" published: 2026-10-28T15:30:14.123Z modified: 2026-10-28T15:30:14.123Z canonical: https://theinference.org/article/flex-s-ai-power-segment-grows-75-85-and-spins-off-as-axiom-with-vicor-s-itc-case-still-open language: en keywords: "Flex, Axiom, Earnings, Data Centers, Power, Spin Offs" --- # Flex's AI power segment grows 75-85% and spins off as Axiom, with Vicor's ITC case still open > A record quarter and a raised fiscal 2027 guide came with the first separate outlook for the AI power business, guided to grow 75-85 percent at roughly double the margin of the rest and spinning off as Axiom, while the Vicor patent case it inherits remains open at the US International Trade Commission. [Flex](https://theinference.org/markets/companies/flex) (NASDAQ: FLEX), the contract manufacturer building data center power and cooling gear, [reported fiscal Q2 on October 28, 2026](https://www.prnewswire.com/news-releases/flex-reports-second-quarter-fiscal-2027-results-302921282.html): net sales of $8.49 billion, up 25 percent year over year, GAAP earnings per share of $0.70 and record adjusted EPS of $1.18 [1]. Full-year guidance rose to $34.9-35.9 billion of sales and adjusted EPS of $4.84 to $5.16, up 52 percent at the midpoint [1]. The headline is strong. The split inside it is the story [1]. *Chart: **Flex revenue accelerated from single digits to 25 percent growth as the AI power buildout took hold** Line chart of Flex quarterly revenue from the quarter ended March 2024 to the quarter ended June 2026, rising from $6.2 billion to $7.9 billion with accelerating growth.* *Quarterly revenue, calendar-quarter labels, fiscal periods as filed. Growth turned from negative in late 2024 to above 20 percent by mid-2026. Source: Flex quarterly figures from its SEC filings [7]. [7]* ## First-ever split guidance shows two companies in one stock For the first time, Flex guided its two halves separately. The Cloud and Power Infrastructure segment, the AI power business, is guided to grow sales 75-85 percent this fiscal year at an 11.5-11.7 percent adjusted operating margin [1]. The remainder, the traditional manufacturing and services businesses, is guided to grow 8-11 percent at 5.9-6.1 percent [1]. On those ranges, the power segment is guided to grow roughly seven to ten times as fast as the rest of the company, at roughly double the margin [1]. *Chart: **The AI power segment is guided to grow roughly seven to ten times faster than the rest of Flex** Range chart comparing fiscal 2027 net sales growth guidance ranges: Cloud and Power Infrastructure guided to 75-85 percent growth, versus 8-11 percent for the rest of Flex.* *The AI power segment is guided to grow roughly seven to ten times faster than the rest of Flex [1]* *Chart: **The AI power segment carries roughly double the guided margin of the rest of Flex** Range chart comparing fiscal 2027 adjusted operating margin guidance ranges: Cloud and Power Infrastructure guided to 11.5-11.7 percent, versus 5.9-6.1 percent for the rest of Flex.* *The AI power segment carries roughly double the guided margin of the rest of Flex [1]* ## The power half has a name, a valuation and a CEO Chief executive [Revathi Advaithi](https://theinference.org/markets/people/revathi-advaithi) said [the $4.4 billion purchase of power-systems maker EPC Power, completed on October 14](https://www.finanznachrichten.de/nachrichten-2026-10/69835948-flex-completes-acquisition-of-epc-power-expanding-power-conversion-capabilities-for-ai-data-centers-and-grid-applications-008.htm), adds power conversion and grid-forming technology to the portfolio and will be immediately accretive in fiscal 2027, with the segment spin-off advancing under its new name, Axiom [1][4]. The name landed on September 15, 2026: Axiom Solutions International, [a preliminary Form 10 filed with the SEC](https://markets.ft.com/data/announce/detail?dockey=600-202609150605PR_NEWS_USPRX____SF47344-1), Nasdaq listing expected under the ticker AXM, separation targeted for the first quarter of calendar 2027, with Advaithi as Axiom's expected chief executive [2]. Private money has already priced the crown jewel: on October 5 Flex [agreed to sell $2.0 billion of Axiom convertible preferred stock](https://markets.ft.com/data/announce/detail?dockey=600-202610050800PR_NEWS_USPRX____SF63229-1) to General Catalyst and Koch Equity Development at a $37.5 billion initial enterprise value for Axiom [3]. ## The spin-off inherits a patent case aimed at its core layer On October 9 the US International Trade Commission [instituted a patent investigation](https://www.usitc.gov/press_room/news_release/2026/er1009_69342.htm) brought by [Vicor](https://theinference.org/markets/companies/vicor) (NASDAQ: VICR), a Massachusetts power-module maker whose complaint was filed September 9, naming Flex among the respondents alongside Delta Electronics, Infineon, [Monolithic Power Systems](https://theinference.org/markets/companies/monolithic-power-systems), Luxshare, [Celestica](https://theinference.org/markets/companies/celestica), Quanta and [Foxconn](https://theinference.org/markets/companies/foxconn-hon-hai-precision-industry) units [5][6]. Vicor seeks a limited exclusion order that would bar infringing vertical power delivery modules from entering the United States, and says royalty rates rise as the case advances toward that order [6]. OEMs and hyperscalers whose systems use the disputed modules [would need a Vicor license to import them](https://finance.yahoo.com/technology/articles/usitc-institutes-investigation-vertical-power-120000759.html) [6]. The module layer under dispute is the layer Axiom is built on. Note the commission has made no decision on the merits, and orders it issues take effect when issued and become final 60 days later unless the US Trade Representative objects [5]. ## What to watch, and what it moves Watch the ITC calendar first: within 45 days of the October 9 institution, the commission sets the target date for completing the investigation, and the case clock runs while Axiom's Form 10 economics are still being written [5]. If an exclusion order lands before the separation, Axiom inherits a business whose imported modules face either a Vicor royalty or a bar at the US border, and the double-margin math above is where that cost shows up [1][6]. Watch November 10 next, when Flex presents each company's strategy at its Innovation Day in Austin, the date the Form 10 details are expected to surface [2]. Until then, Flex trades as two companies with one unresolved patent risk between them and the border. ## Takeaway Flex's record quarter splits into two businesses: the AI power segment guided to grow 75-85 percent at roughly double the group margin and spin off as Axiom, already valued at $37.5 billion by private investors, while Vicor's ITC patent case against the disputed module layer stays open and could reach Axiom before the separation. ## Sources 1. [PR Newswire, Flex Reports Second Quarter Fiscal 2027 Results, 28 October 2026](https://www.prnewswire.com/news-releases/flex-reports-second-quarter-fiscal-2027-results-302921282.html) 2. [PR Newswire via FT Markets, Flex Announces New Company Name for the Planned Cloud and Power Infrastructure Spin-Off and Files Form 10 Registration Statement, 15 September 2026](https://markets.ft.com/data/announce/detail?dockey=600-202609150605PR_NEWS_USPRX____SF47344-1) 3. [PR Newswire via FT Markets, Flex Announces $2.0 Billion Convertible Preferred Investment into Axiom Led by General Catalyst with Koch Equity Development, 5 October 2026](https://markets.ft.com/data/announce/detail?dockey=600-202610050800PR_NEWS_USPRX____SF63229-1) 4. [PR Newswire via FinanzNachrichten, Flex Completes Acquisition of EPC Power, 14 October 2026](https://www.finanznachrichten.de/nachrichten-2026-10/69835948-flex-completes-acquisition-of-epc-power-expanding-power-conversion-capabilities-for-ai-data-centers-and-grid-applications-008.htm) 5. [USITC News Release 26-145, USITC Institutes Section 337 Investigation of Certain Vertical Power Delivery Systems, 9 October 2026](https://www.usitc.gov/press_room/news_release/2026/er1009_69342.htm) 6. [Vicor Corporation via Yahoo Finance, USITC Institutes Investigation of Vertical Power Delivery (VPD) Modules Infringing a Vicor Patent, 12 October 2026](https://finance.yahoo.com/technology/articles/usitc-institutes-investigation-vertical-power-120000759.html) 7. [Flex, quarterly figures from its SEC filings, retrieved 28 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000866374) --- Flex's AI power segment grows 75-85% and spins off as Axiom, with Vicor's ITC case still open — The Inference. Canonical: https://theinference.org/article/flex-s-ai-power-segment-grows-75-85-and-spins-off-as-axiom-with-vicor-s-itc-case-still-open