Jabil Inc.

What they do

Jabil provides engineering, manufacturing, and supply chain solutions across the product lifecycle, from design and planning to fabrication and delivery. Operations are conducted in facilities worldwide, including China, Malaysia, Mexico, and the United States. The company serves customers through dedicated business units that combine automated manufacturing with electronic design capabilities.

Revenue drivers

• Intelligent Infrastructure — Serves capital equipment, cloud and data center infrastructure, and networking and communications industries. Demand is driven by AI infrastructure, with management noting extremely strong demand.
• Connected Living and Digital Commerce — Focuses on digitalization and automation, including warehouse automation and robotics. Management cited better-than-expected performance in this segment.
• Regulated Industries — Serves automotive and transportation, healthcare and packaging, and renewables and energy infrastructure. Management noted improved performance in automotive within this segment.

Recent performance

For fiscal 2025, Jabil reported net revenue of $29.8 billion and net income attributable of $657 million, with diluted EPS of $5.92. In the third quarter of fiscal 2026 (quarter ended May 31, 2026), net revenue was $8.75 billion, up from $7.83 billion in the prior-year quarter, and U.S. GAAP diluted EPS was $2.59. For the nine months ended May 31, 2026, revenue was $25.34 billion, up from $21.55 billion in the prior-year period, and net income attributable was $644 million. The company reported operating cash flow of $1.64 billion for fiscal 2025.

Strategy

Management emphasizes a diversified model across segments to support growth while improving margins and free cash flow. The company is raising its fiscal 2026 outlook for revenue, core operating margins, core EPS, and free cash flow. Jabil is focused on profitable growth, capital efficiency, and delivering long-term shareholder value, with AI infrastructure demand a key driver. The company also monitors the evolving tariff landscape and has begun receiving refunds for IEEPA tariffs previously paid, which did not have a material impact.

Risks

• Customer concentration — Jabil depends on a relatively small number of customers for a significant percentage of net revenue, and customers do not commit to long-term production schedules, which can lead to order cancellations or delays.
• Demand volatility — Customer ordering behavior is subject to end-market recessions, technology changes, and shifting demand, which can result in excess or obsolete inventory and reduced gross margins.
• Tariff refund uncertainty — The company is receiving refunds for IEEPA tariffs but expects no material impact from further refunds; however, the global tariff landscape remains uncertain.
• Global operations exposure — The company derived 75.8% of net revenue from international operations in the three months ended May 31, 2026, exposing it to geopolitical and trade risks.

Outlook

For the fourth quarter of fiscal 2026, Jabil expects net revenue of $9.2 billion to $10.0 billion, U.S. GAAP diluted EPS of $3.24 to $3.64, and core diluted EPS of $3.80 to $4.20. For full fiscal 2026, the company expects net revenue of approximately $35 billion, core operating margin of 5.8%, core diluted EPS of $12.70, and adjusted free cash flow of $1.4 billion or more. Management is raising its fiscal 2026 outlook and expresses confidence in fiscal 2027.