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Jabil Q4 Earnings Surpass Estimates on Strong Revenue Growth

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Key Takeaways

  • Jabil's fiscal Q4 revenues rose to $8.3B, beating estimates and growing from $6.96B last year.
  • Intelligent Infrastructure sales jumped 62%, led by capital equipment and AI-driven demand.
  • For fiscal Q1 2026, Jabil expects revenues to be $7.7-$8.3B and EPS of $2.47-$2.87.

Jabil, Inc. (JBL - Free Report) reported strong fourth-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment, healthcare and retail automation end-markets.

JBL’s Net Income

Net income on a GAAP basis in the quarter was $218 million or $1.99 per share compared with $138 million or $1.18 in the prior-year quarter. The improvement is primarily driven by top-line growth.

Non-GAAP net income in the reported quarter was $360 million or $3.29 per share compared with $270 million or $2.3 in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.95.

For fiscal 2025, the GAAP net income was $657 million or $5.92 per share compared with $1.38 billion or $11.17 per share a year ago. Non-GAAP net income was $1.08 billion or $9.75 per share compared to $1.05 billion or $8.49 per share in fiscal 2024.

Jabil, Inc. Price, Consensus and EPS Surprise

Jabil, Inc. Price, Consensus and EPS Surprise

Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote

JBL’s Revenues

Net sales during the quarter increased to $8.3 billion from $6.96 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.66 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.

In the fiscal fourth quarter, the Regulated Industries segment contributed 38% to revenues. The 3% year-over-year growth is driven by healthy traction in the healthcare & packaging end market.

The Intelligent Infrastructure contributed 45% of total revenues, up 62% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.

About 17% of the total revenues came from the Connected Living & Digital Commerce segment. The 14% year-over-year decline is due to soft demand for consumer-driven products. Strong growth in the digital commerce market partially reversed this trend.

JBL’s Other Details

Gross profit was $783 million compared with $663 million in the year-ago quarter. Non-GAAP operating income aggregated $337 million, up from $318 million in the year-ago period. Non-GAAP operating margin was 6.3% up from the year-ago quarter’s figure of 5.8%.

JBL’s Cash Flow & Liquidity

In fiscal 2025, Jabil generated $1.64 billion of net cash from operating activities compared to $1.71 billion a year ago. As of Aug. 31, 2025, the company had $1.93 billion in cash and cash equivalents, with $2.38 billion of notes payable and long-term debt. Free cash flow stands at $1.31 billion compared to $1.05 billion in 2024.

JBL’s Guidance

For the first quarter of fiscal 2026, revenues are expected to be in the range of $7.7-$8.3 billion. Non-GAAP operating income is projected in the $400-$460 million range. Management estimates non-GAAP earnings per share within the band of $2.47-$2.87.

Management expects AI data center infrastructure, healthcare and advanced warehouse and retail automation to be the major growth drivers in 2026. For fiscal 2026, revenues are now projected at $31.3 billion. Non-GAAP earnings per share are expected to be $11.00. The company is expected to generate more than $1.3 billion in adjusted free cash flow.

JBL’s Zacks Rank

JBL currently carries a Zacks Rank #4 (Sell).

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