Jabil Inc.
JBL · NYSE
Next quarter
Reports Dec 16, 2026.
Consensus is $3.64 EPS for Nov 2026 across 4 estimates, ranging $3.54 to $3.93.
JBL Aug 2026
- 7.20%
- $3.89
- $4.17
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Highlights
- Q4 growth and beat: Revenue was $10.616 billion, up 29% year over year and 21% sequentially; core diluted EPS of $4.40 exceeded the $4.20 high end of company guidance. Supplied consensus data lists EPS of $3.89 and reported EPS of $4.17, a 7.2% beat; the release reports GAAP diluted EPS of $3.76 and core diluted EPS of $4.40.
- AI infrastructure drove the upside: Intelligent Infrastructure revenue rose 56% year over year to approximately $5.8 billion, about $900 million above the June outlook, on stronger AI demand, earlier capacity availability and better customer ramps.
- Profitability improved: GAAP operating income increased to $602 million from $337 million a year earlier, while core operating income reached $675 million and core margin was 6.4%, up from 6.3%. Core EPS rose 34% year over year to $4.40.
- Strong FY2027 outlook: Jabil forecast revenue of $44.5 billion, up 24%, core operating margin of 6.1%, core diluted EPS of $17.55, up 34%, and adjusted free cash flow of approximately $1.6 billion.
- AI growth remains substantial: Fiscal 2026 AI-related revenue was approximately $14.4 billion, up $5.4 billion; management expects $22.1 billion in FY2027, up 54%, with six Intelligent Infrastructure customers each generating more than $1 billion.
- Cash generation and capital returns: FY2026 adjusted free cash flow was $1.532 billion versus $1.318 billion a year ago; the company repurchased approximately $1.1 billion of shares and ended the year with $1.7 billion in cash and 1.3x debt to core EBITDA.
- Growth broadens beyond AI: FY2027 segment guidance calls for Regulated Industries revenue of $13.6 billion, up 7%, and Intelligent Devices & Robotics revenue of $5.3 billion, down 2%; within the latter, Digital Commerce & Robotics is expected to grow 11%, while Connected Living declines 15%.
- Capacity and working capital are execution priorities: Jabil added capacity and expects to bring on about 4 million square feet in FY2027; net inventory days fell four sequentially to 64, still above its 55–60-day target range.
Analysis
Jabil closed FY2026 with a sharp acceleration: Q4 revenue of $10.616 billion was up 29% year over year and 21% from Q3’s $8.75 billion, exceeding management’s outlook as AI infrastructure demand and capacity ramps outperformed expectations. GAAP diluted EPS was $3.76 versus $1.99 a year earlier and $2.59 in Q3; core diluted EPS of $4.40 rose 34% year over year. Supplied consensus data shows reported EPS of $4.17 against $3.89 expected, a 7.2% beat, while the release separately reports GAAP and core EPS of $3.76 and $4.40. GAAP operating income reached $602 million, up from $337 million a year ago and $445 million in Q3. For the full year, revenue grew 21% to $35.954 billion, core margin expanded 40 basis points to 5.8%, and adjusted free cash flow rose to $1.532 billion from $1.318 billion.
The quarter’s defining driver was Intelligent Infrastructure: revenue grew 56% to approximately $5.8 billion, beating the June outlook by roughly $900 million as AI demand accelerated and capacity came online sooner than planned. The second defining feature is the step-up in expectations: Jabil forecasts FY2027 revenue of $44.5 billion, up 24%, and core EPS of $17.55, up 34%, including AI-related revenue growth of 54%. Management expects capacity utilization and mix to support margin expansion, while noting that new capacity ramps can weigh on first-half profitability. Broader growth in automotive, healthcare, energy infrastructure and automation complements AI, though supply constraints and inventory above target remain execution considerations.
AI infrastructure
- Q4 demand: Intelligent Infrastructure generated approximately $5.8 billion of revenue, up 56% year over year and roughly $900 million above the June outlook. AI demand exceeded expectations, while capacity came online earlier and customer ramps progressed faster; the second hyperscaler ramp in Mexico, networking in India and the power business also contributed.
- FY2027 scale: Management expects the segment to generate approximately $25.6 billion of revenue, up 43%, with AI-related revenue of $22.1 billion, up 54% from approximately $14.4 billion in FY2026. Capital equipment is forecast to grow 40%, cloud and data center infrastructure 52%, and networking and communications 15%; management clarified that networking itself is expected to grow roughly 45%–50%, offset by subdued communications.
- Customer and capacity base: Jabil ended FY2026 with four AI-related customers above $1 billion of annual revenue and expects five in FY2027 from the segment in prepared remarks, with the full-year outlook later specifying six Intelligent Infrastructure customers above that threshold. The third hyperscaler win is expected to contribute modestly in FY2027, with a larger opportunity beyond it; capacity additions are tied to booked business.
FY2027 outlook
- Company targets: Jabil expects FY2027 revenue of $44.5 billion, up 24%, core operating margin of 6.1% (30 basis points higher), core diluted EPS of $17.55 (up 34%) and adjusted free cash flow of approximately $1.6 billion. Net capital expenditures are expected at 1.5%–2% of revenue.
- Segment mix: Regulated Industries is forecast at $13.6 billion, up 7%, including approximately $5.0 billion in automotive and transportation, $5.6 billion in healthcare and packaging, and $3.0 billion in renewable and energy infrastructure. Intelligent Devices & Robotics is expected at $5.3 billion, down 2%; Digital Commerce & Robotics grows approximately 11% to $3.0 billion, offset by a 15% decline in Connected Living to $2.3 billion.
- Quarterly guide and phasing: Q1 FY2027 revenue guidance is $10.6 billion–$11.4 billion, with core EPS of $3.80–$4.20. Management expects revenue to be relatively balanced across the year, with 45%–55% in the first half versus second half, but earnings and margins more back-end weighted as new capacity ramps, yields improve and utilization increases.
Margins and cash
Q4 GAAP operating income was $602 million, or 5.7% of revenue, compared with $337 million and 4.1% a year ago. Core operating income rose to $675 million from $519 million, and core margin edged up to 6.4% from 6.3%; core EPS of $4.40 compared with $3.29. For FY2026, core operating income increased to $2.069 billion from $1.620 billion and core margin reached 5.8%, versus 5.4% in FY2025. Management attributes the margin progress to a richer mix, operating leverage and taking on more engineering and system complexity while retaining an asset-light model.
Cash from operations was $733 million in Q4 and approximately $2.0 billion for the year. Q4 adjusted free cash flow was $541 million, bringing the FY total to $1.532 billion, above the initial outlook of at least $1.3 billion. Net capital expenditures were $470 million, or 1.3% of revenue, for FY2026. The company repurchased approximately $169 million of shares in Q4 and $1.1 billion for the year; roughly $1.4 billion remained under its new $1.5 billion authorization at year-end.
Diversified growth
- Regulated Industries: Q4 revenue was $3.4 billion, up 9% year over year and ahead of outlook, with automotive and renewable energy infrastructure stronger than expected; healthcare and packaging were held back by automation equipment delays and a customer-program timing shift. For FY2027, management expects healthcare to return to growth and defense and aerospace to contribute more as new programs enter production.
- Automotive and healthcare opportunities: Jabil said automotive revenue reached approximately $4.6 billion in FY2026 and expects about $5.0 billion in FY2027, up 9%. It has shifted its automotive portfolio toward software-defined vehicles, compute and driver-assistance programs: electrification and powertrain fell from about 80% of the mix in FY2023 to about 40% in FY2026. In drug delivery, it expects to manufacture more than 700 million injectors and delivery pens in FY2027.
- Devices and robotics: Connected Living & Digital Commerce revenue was approximately $1.4 billion in Q4, roughly flat year over year, with a 7.1% core margin. The renamed Intelligent Devices & Robotics segment is focusing on higher-value connected products and warehouse, retail and industrial automation; management described physical AI as an early-stage opportunity and did not build much contribution into the FY2027 forecast.
Execution and liquidity
- Inventory: Net inventory days improved by approximately four days sequentially to 64, but remained above the 55–60-day target. Management cited higher commodity prices, customer-supported inventory deposits and a greater cloud/data-center weighting as factors, and expects days to return to target during FY2027.
- Capacity and supply: Jabil expects to add approximately 4 million square feet of manufacturing capacity in FY2027, with committed customer business intended to fill it. Management expects a ramp-related cost and yield burden early in the year and flagged constrained component supply, particularly memory, while pointing to supplier relationships and customer coordination as mitigants.
- Balance sheet: Year-end cash was approximately $1.7 billion, balance-sheet debt approximately $3.4 billion and debt to core EBITDA 1.3x. Total available liquidity was approximately $6.1 billion, including $4.4 billion of unused borrowing capacity; management expects to fund growth and shareholder returns while maintaining an investment-grade profile.
