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Jabil expects fiscal 2027 revenues of about $44.5B, up 24%, with core EPS projected at $17.55.
AI-related revenues are expected to reach about $22.1B in fiscal 2027, representing 54% growth.
Jabil is adding roughly 4 million square feet of capacity for more than $8B of incremental revenues.
Jabil Inc. (JBL - Free Report) used its fiscal fourth-quarter earnings call to frame another step-up in growth, led by AI infrastructure and backed by capacity additions, broader customer relationships and improving demand across several non-AI markets.
Fourth-quarter core earnings of $4.4 per share topped the Zacks Consensus Estimate of $4.06, while revenues of $10.62 billion exceeded the $9.66 billion consensus. Management focused more heavily on the fiscal 2027 opportunity and execution requirements ahead.
CEO Michael Dastoor said that Jabil expects fiscal 2027 revenues of approximately $44.5 billion, up 24%, with core operating margin rising 30 basis points to 6.1%. Core diluted earnings are projected at $17.55 per share.
Intelligent Infrastructure is expected to generate approximately $25.6 billion, up 43%. Dastoor said AI-related revenues should reach about $22.1 billion, representing 54% growth.
Executive vice president Matt Crowley said that AI-related demand continues to accelerate, supported by cloud infrastructure, networking, power, cooling and semiconductor equipment. Management expects six Intelligent Infrastructure customers to each generate more than $1 billion in fiscal 2027.
Jabil Expands Capacity for Committed Growth
Dastoor said that Jabil is adding roughly 4 million square feet of capacity as it prepares for more than $8 billion of incremental fiscal 2027 revenues. He emphasized that the company has customer commitments supporting those investments.
Chief operating officer Andy Priestley said that Jabil has expanded capacity in the United States, India, Mexico, Brazil and Vietnam while preparing factories for increasingly complex programs.
During the Q&A, Dastoor said that revenues should be weighted about 45% to the first half and 55% to the second half. Margins are expected to be more back-end weighted as utilization, yields and ramp costs improve.
JBL Keeps Asset-Light Model Central
Chief financial officer Gregory Hebard said that fiscal 2026 adjusted free cash flow exceeded $1.5 billion, while net capital expenditures totaled about $470 million, or 1.3% of revenues.
Dastoor expects net capital expenditures to remain between 1.5% and 2% of revenues in fiscal 2027. Hebard added that Intelligent Infrastructure's capital intensity is closer to 1% of revenues.
Management forecasts approximately $1.6 billion of adjusted free cash flow for fiscal 2027. Jabil also intends to continue returning at least 80% of adjusted free cash flow to shareholders over time.
Jabil Broadens Growth Beyond AI
Executive vice president Steve Borges said that Regulated Industries should benefit from automotive, defense and aerospace, healthcare and energy infrastructure growth.
Dastoor expects Regulated Industries revenues of approximately $13.6 billion, up 7%. Healthcare and packaging are projected to grow 6%, while automotive and transportation should rise about 9%.
Senior vice president Rafael Renno mentioned that the renamed Intelligent Devices & Robotics segment is increasingly focused on automation, robotics and complex engineered products. Digital Commerce & Robotics revenues are expected to increase approximately 11%.
JBL Q&A Focuses on Execution and Supply
A JPMorgan analyst asked about margin progression as new capacity ramps. Hebard said that first-half margins should remain lighter before improving as utilization, mix and operating leverage strengthen later in the year.
A UBS analyst questioned whether additional Intelligent Infrastructure capacity could be needed. Crowley stated that Jabil has planned around a roughly 18-month horizon and currently feels well positioned for the next 12 to 18 months.
A Raymond James analyst pressed management on elevated inventory. Hebard said that net inventory days fell four sequentially to 64, while chief supply chain officer Francis McKay mentioned that component availability remains the bigger operational concern.
Jabil's Focus Into Fiscal 2027
Management's fiscal 2027 posture centers on converting committed demand and added capacity into higher utilization, margins, earnings and cash flow.
Dastoor also maintained a disciplined capital-allocation framework, balancing organic investment and capability-focused acquisitions with share repurchases while preserving an investment-grade credit profile.
JBL's Zacks Signals Remain Favorable
JBL currently carries a Zacks Rank #2 (Buy), with a Value Score of B, a Growth Score of B, a Momentum Score of A and a VGM Score of A. The Zacks methodology views A and B Style Scores as favorable, particularly when paired with a Zacks Rank #1 (Strong Buy) or #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The A Momentum and VGM Scores indicate stronger marks for price momentum and the combined value-growth-momentum profile, while the B Value and Growth Scores also fall within Zacks' preferred range. The Zacks Rank can change as analysts revise earnings estimates following the latest results.
View the Zacks #1 Rank List
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JBL Q4 Earnings Call Highlights AI-Led Fiscal 2027 Growth
Key Takeaways
Jabil Inc. (JBL - Free Report) used its fiscal fourth-quarter earnings call to frame another step-up in growth, led by AI infrastructure and backed by capacity additions, broader customer relationships and improving demand across several non-AI markets.
Fourth-quarter core earnings of $4.4 per share topped the Zacks Consensus Estimate of $4.06, while revenues of $10.62 billion exceeded the $9.66 billion consensus. Management focused more heavily on the fiscal 2027 opportunity and execution requirements ahead.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
JBL Sees AI Demand Driving Fiscal 2027
CEO Michael Dastoor said that Jabil expects fiscal 2027 revenues of approximately $44.5 billion, up 24%, with core operating margin rising 30 basis points to 6.1%. Core diluted earnings are projected at $17.55 per share.
Intelligent Infrastructure is expected to generate approximately $25.6 billion, up 43%. Dastoor said AI-related revenues should reach about $22.1 billion, representing 54% growth.
Executive vice president Matt Crowley said that AI-related demand continues to accelerate, supported by cloud infrastructure, networking, power, cooling and semiconductor equipment. Management expects six Intelligent Infrastructure customers to each generate more than $1 billion in fiscal 2027.
Jabil Expands Capacity for Committed Growth
Dastoor said that Jabil is adding roughly 4 million square feet of capacity as it prepares for more than $8 billion of incremental fiscal 2027 revenues. He emphasized that the company has customer commitments supporting those investments.
Chief operating officer Andy Priestley said that Jabil has expanded capacity in the United States, India, Mexico, Brazil and Vietnam while preparing factories for increasingly complex programs.
During the Q&A, Dastoor said that revenues should be weighted about 45% to the first half and 55% to the second half. Margins are expected to be more back-end weighted as utilization, yields and ramp costs improve.
JBL Keeps Asset-Light Model Central
Chief financial officer Gregory Hebard said that fiscal 2026 adjusted free cash flow exceeded $1.5 billion, while net capital expenditures totaled about $470 million, or 1.3% of revenues.
Dastoor expects net capital expenditures to remain between 1.5% and 2% of revenues in fiscal 2027. Hebard added that Intelligent Infrastructure's capital intensity is closer to 1% of revenues.
Management forecasts approximately $1.6 billion of adjusted free cash flow for fiscal 2027. Jabil also intends to continue returning at least 80% of adjusted free cash flow to shareholders over time.
Jabil Broadens Growth Beyond AI
Executive vice president Steve Borges said that Regulated Industries should benefit from automotive, defense and aerospace, healthcare and energy infrastructure growth.
Dastoor expects Regulated Industries revenues of approximately $13.6 billion, up 7%. Healthcare and packaging are projected to grow 6%, while automotive and transportation should rise about 9%.
Senior vice president Rafael Renno mentioned that the renamed Intelligent Devices & Robotics segment is increasingly focused on automation, robotics and complex engineered products. Digital Commerce & Robotics revenues are expected to increase approximately 11%.
JBL Q&A Focuses on Execution and Supply
A JPMorgan analyst asked about margin progression as new capacity ramps. Hebard said that first-half margins should remain lighter before improving as utilization, mix and operating leverage strengthen later in the year.
A UBS analyst questioned whether additional Intelligent Infrastructure capacity could be needed. Crowley stated that Jabil has planned around a roughly 18-month horizon and currently feels well positioned for the next 12 to 18 months.
A Raymond James analyst pressed management on elevated inventory. Hebard said that net inventory days fell four sequentially to 64, while chief supply chain officer Francis McKay mentioned that component availability remains the bigger operational concern.
Jabil's Focus Into Fiscal 2027
Management's fiscal 2027 posture centers on converting committed demand and added capacity into higher utilization, margins, earnings and cash flow.
Dastoor also maintained a disciplined capital-allocation framework, balancing organic investment and capability-focused acquisitions with share repurchases while preserving an investment-grade credit profile.
JBL's Zacks Signals Remain Favorable
JBL currently carries a Zacks Rank #2 (Buy), with a Value Score of B, a Growth Score of B, a Momentum Score of A and a VGM Score of A. The Zacks methodology views A and B Style Scores as favorable, particularly when paired with a Zacks Rank #1 (Strong Buy) or #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The A Momentum and VGM Scores indicate stronger marks for price momentum and the combined value-growth-momentum profile, while the B Value and Growth Scores also fall within Zacks' preferred range. The Zacks Rank can change as analysts revise earnings estimates following the latest results.