Flex Ltd Lifts FY2027 Guidance and Backs $2B Axiom Funding Round
Flex Ltd (NASDAQ:FLEX) announced that Axiom is securing $2.0 billion in Series A funding through the sale of 200,000 preferred shares at $10,000 per share. Venture firm General Catalyst is leading the investment round. Flex has agreed to guarantee the redemption of these shares if the planned Axiom spin-off does not take place by December 31, 2027.
Alongside the funding announcement, Flex updated its financial outlook for fiscal 2027. The company raised its adjusted earnings per share projection to a range between $4.42 and $4.74. It also bumped its annual revenue guidance to between $33.70 billion and $35.20 billion, demonstrating higher expectations for top-line growth and profitability.
Investors will be tracking the progress of the Axiom spin-off ahead of the late 2027 deadline. The completion of the transaction will determine whether Flex's redemption guarantee is triggered or if Axiom successfully transitions into an independent entity.
Key points
- Axiom is raising $2.0 billion by issuing 200,000 Series A preferred shares priced at $10,000 each.
- Venture capital firm General Catalyst is leading the $2.0 billion Series A funding round.
- Flex Ltd guarantees share redemption if the Axiom spin-off is not finalized by December 31, 2027.
- Flex Ltd raised its fiscal 2027 adjusted earnings per share guidance to between $4.42 and $4.74.
- The company increased its fiscal 2027 full-year revenue outlook to a range of $33.70B to $35.20B.
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What is Flex Ltd's updated financial guidance for fiscal 2027?
Flex Ltd raised its fiscal 2027 adjusted earnings per share outlook to $4.42–$4.74 and updated its full-year revenue guidance to between $33.70 billion and $35.20 billion.
How much funding is Axiom raising in its Series A round?
Axiom is raising $2.0 billion through 200,000 Series A preferred shares priced at $10,000 per share, with General Catalyst leading the round.
What is Flex Ltd's role in the Axiom Series A financing?
Flex Ltd is backing the deal by guaranteeing the redemption of Axiom's preferred shares if the spin-off process is not completed by December 31, 2027.