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Jabil Q2 Earnings Beat Estimates on Solid Revenue Growth
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Key Takeaways
Jabil reported Q2 fiscal 2026 beats, with revenue rising to $8.3B and GAAP net income doubling YoY.
JBL saw 52% growth in Intelligent Infrastructure, fueled by AI cloud and data center demand.
Jabil raised FY2026 outlook, projecting $34B revenues and $12.25 EPS on strong AI-driven demand.
Jabil, Inc. (JBL - Free Report) reported strong second-quarter fiscal 2026 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 and healthcare end-markets.
JBL’s Net Income
Net income on a GAAP basis in the quarter was $223 million or $2.08 per share compared with $117 million or $1.06 per share in the prior-year quarter. The improvement is primarily driven by top-line growth.
Non-GAAP net income in the reported quarter was $288 million or $2.69 per share compared with $215 million or $1.94 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.54.
Net sales during the quarter increased to $8.3 billion from $6.72 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.82 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.
In the fiscal second quarter, the Regulated Industries segment contributed 36% to revenues. The 10% year-over-year growth is driven by healthy traction in the renewable energy infrastructure, healthcare & packaging end markets.
The Intelligent Infrastructure contributed 49% of total revenues, up 52% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.
About 15% of the total revenues came from the Connected Living & Digital Commerce segment. The 8% 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 $746 million compared with $576 million in the year-ago quarter. Non-GAAP operating income aggregated $436 million, up from $334 million in the year-ago period. Non-GAAP operating margin was 5.3%, up from the year-ago quarter’s figure of 5%.
JBL’s Cash Flow & Liquidity
In the second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. As of Feb. 28, 2026, the company had $1.83 billion in cash and cash equivalents, with $3.37 billion of notes payable and long-term debt. Adjusted free cash flow stands at $360 million.
JBL’s Guidance Up
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 $34 billion, up from the prior estimate of $32.4 billion. Non-GAAP earnings per share are expected to be $12.25, up from the prior estimate of $11.55. 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 #2 (Buy).
Other Stocks to Consider
Ubiquiti Inc. (UI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques.
HubSpot, Inc. (HUBS - Free Report) sports a Zacks Rank #1. It delivered an earnings surprise of 3.34% in the last reported quarter.
HubSpot is benefiting from growing user engagement across all segments. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present.
In the last reported quarter, it delivered an earnings surprise of 8.62%. With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Its strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.
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Jabil Q2 Earnings Beat Estimates on Solid Revenue Growth
Key Takeaways
Jabil, Inc. (JBL - Free Report) reported strong second-quarter fiscal 2026 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 and healthcare end-markets.
JBL’s Net Income
Net income on a GAAP basis in the quarter was $223 million or $2.08 per share compared with $117 million or $1.06 per share in the prior-year quarter. The improvement is primarily driven by top-line growth.
Non-GAAP net income in the reported quarter was $288 million or $2.69 per share compared with $215 million or $1.94 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.54.
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 $6.72 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.82 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.
In the fiscal second quarter, the Regulated Industries segment contributed 36% to revenues. The 10% year-over-year growth is driven by healthy traction in the renewable energy infrastructure, healthcare & packaging end markets.
The Intelligent Infrastructure contributed 49% of total revenues, up 52% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.
About 15% of the total revenues came from the Connected Living & Digital Commerce segment. The 8% 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 $746 million compared with $576 million in the year-ago quarter. Non-GAAP operating income aggregated $436 million, up from $334 million in the year-ago period. Non-GAAP operating margin was 5.3%, up from the year-ago quarter’s figure of 5%.
JBL’s Cash Flow & Liquidity
In the second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. As of Feb. 28, 2026, the company had $1.83 billion in cash and cash equivalents, with $3.37 billion of notes payable and long-term debt. Adjusted free cash flow stands at $360 million.
JBL’s Guidance Up
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 $34 billion, up from the prior estimate of $32.4 billion. Non-GAAP earnings per share are expected to be $12.25, up from the prior estimate of $11.55. 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 #2 (Buy).
Other Stocks to Consider
Ubiquiti Inc. (UI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques.
HubSpot, Inc. (HUBS - Free Report) sports a Zacks Rank #1. It delivered an earnings surprise of 3.34% in the last reported quarter.
HubSpot is benefiting from growing user engagement across all segments. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present.
In the last reported quarter, it delivered an earnings surprise of 8.62%. With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Its strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.