stockrowWhat it does
Jabil is a provider of engineering, supply-chain and manufacturing services. It works for companies that outsource some or all of the work needed to turn a product concept into a finished product: design, planning, sourcing, fabrication, assembly, testing, delivery and post-production support.
Its manufacturing model combines automated production lines with engineering and design-for-manufacturability work. Customer-facing business units are generally dedicated to a single customer, with their own production equipment, workers, buyers, planners and engineers. Cross-functional teams support those units at individual sites.
The company serves three end-market groupings. Regulated Industries covers automotive and transportation, healthcare and packaging, and renewable and energy infrastructure. Intelligent Infrastructure serves capital equipment, cloud and data-center infrastructure, and networking and communications, including AI infrastructure. Intelligent Devices and Robotics, previously called Connected Living and Digital Commerce, covers digitalization and automation, including warehouse automation and robotics.
Jabil operates manufacturing facilities globally, including in China, Malaysia, Mexico and the United States. It was founded in 1966, is headquartered in St. Petersburg, and Michael Dastoor is chief executive officer. Its workforce was 135,000 people in FY2025, and it operated across approximately 120 locations in 30 countries as of August 31, 2026.
How it makes money
Jabil earns revenue by providing product design, procurement, manufacturing, assembly, testing and fulfillment services. It is a turnkey manufacturer for many programs, meaning it buys the electronic components and other materials used in the products it makes. Revenue from a manufactured product includes a materials element and an element for labor and manufacturing overhead.
Intelligent Infrastructure was the largest segment in FY2026, with $17.9 billion of revenue, or 49.7% of revenue. It serves AI infrastructure, cloud and data-center infrastructure, capital equipment, and networking and communications customers. Regulated Industries generated $12.7 billion, or 35.3% of revenue, from regulated end markets. Connected Living and Digital Commerce generated $5.4 billion, or 15.0% of revenue; from September 1, 2026, this segment has been called Intelligent Devices and Robotics. The renaming did not change the segment composition or reported segment financial information.
Profitability depends partly on the mix of materials, labor and overhead in each product, as well as plant utilization. Higher production volume and capacity utilization have generally corresponded with improved operating income margins, while lower volumes have generally reduced them. Jabil may collect customer deposits for inventory, negotiates materials-cost adjustments periodically, and manages inventory, receivables and payables as part of its working-capital cycle.
For fiscal 2026, Jabil reported net revenues of $36.0 billion and net income attributable to Jabil Inc. of $1.0 billion. Management said on the call that it was adding 4 million square feet of capacity across the organization and that capital expenditure would be 1.5% to 2%.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Intelligent Infrastructure | $17.9 billion | 49.7% | 45.1% |
| Regulated Industries | $12.7 billion | 35.3% | 6.86% |
| Connected Living and Digital Commerce | $5.4 billion | 15.0% | −3.89% |
Customers and how it sells
Jabil targets long-term relationships with companies that use global, automated, continuous-flow manufacturing. Its customers span cloud and data-center infrastructure, healthcare, energy and renewable infrastructure, automotive and transportation, warehouse automation, networking and communications, and semi-capital equipment. It markets through its website and social-media platforms, direct engagement with prospective customers, industry events and targeted outreach.
Customer concentration is material. In FY2026, 76 customers accounted for 90.0% of revenue, the five largest customers accounted for 37.0%, and Customer A accounted for 20.0%. Sales to Customer A were reported primarily in Intelligent Infrastructure.
Jabil manufactures in locations worldwide and uses its footprint to place production near customer end markets. In FY2026, Other revenue was $10.6 billion, or 29.5% of revenue; U.S. revenue was $9.7 billion, or 26.9%; Mexico revenue was $7.2 billion, or 20.0%; Malaysia revenue was $4.4 billion, or 12.2%; and China revenue was $4.1 billion, or 11.4%. The company is investing in local-for-local and local-for-regional capabilities to reduce lead times and support customers where they operate.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Other | $10.6 billion | 29.5% | 20.3% |
| U.S. | $9.7 billion | 26.9% | 30.0% |
| Mexico | $7.2 billion | 20.0% | 26.6% |
| Malaysia | $4.4 billion | 12.2% | 20.1% |
| China | $4.1 billion | 11.4% | −2.72% |
Suppliers and costs
Jabil procures components from a broad group of suppliers on an assembly-by-assembly basis. Global sourcing and purchasing locations, commodity-management teams and supplier-relationship teams manage procurement. Its electronic data interchange, cloud tools and procurement-intelligence systems support demand forecasts, purchase orders, just-in-time delivery, supplier-managed inventory and inventory optimization.
Some products require components available from only one supplier. Supply shortages can result in allocation of those parts and can substantially curtail production of every assembly that uses them. As a turnkey provider, Jabil must commit significant working capital to buying, receiving, inspecting and stocking materials.
The main cost categories are components and other materials, labor, manufacturing overhead, and adjustments for excess and obsolete inventory. Materials-price increases can pressure margins even when the company periodically negotiates customer adjustments. Management said on the call that net inventory days were 64, above the 55 to 60 day target range, citing higher commodity pricing and a greater weighting of cloud data-center infrastructure inventory.
- Revenue$36.0B
- Cost of revenue−$32.6B
- Research and development−$30.0M
- Selling, general and administrative−$1.4B
- Other operating costs−$221.0M
- Operating income$1.7B
Competitive position
Jabil competes with domestic and foreign electronic manufacturing solutions providers, diversified manufacturing service providers and design providers. It also competes with the internal manufacturing operations of current and potential customers that choose between making products themselves and outsourcing. Competition varies by service and geography, with cost, production speed, efficiency, global locations, ability to scale, technology, quality and component pricing identified as competitive factors.
It was reported on 22 October 2026 that Jabil is a major competitor to Celestica in electronics manufacturing services. No other company is directly identified as a Jabil competitor in the available information.
Our reading: Jabil’s global production footprint, centralized procurement and common enterprise resource planning system provide a meaningful operating moat because they support location choice, supply-chain visibility and production near end markets.
Our reading: Dedicated customer business units, integrated design-to-production services and automated continuous-flow manufacturing create switching and execution advantages for established programs, but customer concentration and outsourced-manufacturing competition limit their durability.
Our reading: Jabil’s proprietary technology and patent portfolio is a limited standalone moat because the company does not consider its business materially dependent on any individual patent or intellectual-property right.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Celestica | electronics manufacturing services | High |
Growth opportunities
Jabil’s growth efforts focus on customers and end markets using global, automated production and increasingly complex engineering. Its Intelligent Infrastructure segment addresses AI infrastructure, capital equipment, cloud and data-center infrastructure, and networking and communications. Intelligent Infrastructure revenue grew 45.1% in FY2026 to $17.9 billion. Regulated Industries revenue grew 6.86% to $12.7 billion, while Connected Living and Digital Commerce revenue declined −3.89% to $5.4 billion.
The company is expanding design, manufacturing and test capabilities across areas including advanced electrical assembly, thermal management, sensors, optics, silicon photonics, outsourced semiconductor assembly and test, artificial intelligence and machine learning. Management said on the call that demand continued to exceed supply for integration of highly complex racks and servers. Management also said that it was adding 4 million square feet of capacity to support revenue above its guidance.
In healthcare, management said on the call that Jabil had new wins in medical devices, patient monitoring and continuous glucose-monitoring devices. It also said that auto-injector wins across biologics, diabetes, insulin and GLP-1 applications required expansion of the North Carolina site, and that it had new wins in orthopedics and diagnostics related to advanced testing platforms.
The company is shifting Intelligent Devices and Robotics toward more highly complex, engineered solutions in automation and robotics. It expects capacity brought online to be better utilized in the back half of the year as it fills that capacity.
- $33.5BFY2022
- $34.7BFY2023
- $28.9BFY2024
- $29.8BFY2025
- $36.0BFY2026
- $44.5BFY2027 guidance
Structural risks
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Customer schedules and sourcing decisions can change. Customers generally do not commit to long-term production schedules and may cancel orders, change quantities, delay production or change sourcing strategy.
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Revenue is concentrated among a limited group of customers. Customer A accounted for 20.0% of FY2026 revenue, principally in Intelligent Infrastructure, while the five largest customers accounted for 37.0%.
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Component availability can disrupt production. Some components are single-source, and shortages can allocate supply or substantially curtail assemblies using a constrained component.
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Manufacturing margins depend on utilization, materials costs and inventory management. Low production volume has generally reduced operating income margins, while rising materials prices may negatively affect margins. Management reported net inventory days of 64 versus a 55 to 60 day target range.
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International operations face trade, regulatory, labor, currency, logistics and geopolitical risks. Tariffs, quotas, export controls and other protectionist measures could adversely affect the business.
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It was reported on 25 October 2026 that supply tightness and inventory normalization remain risks to earnings momentum and capital-return flexibility.
Bottom line
Our reading
Our reading: Jabil is a global, asset-intensive manufacturing and engineering business whose economics depend on executing complex customer programs, procuring materials and keeping production capacity utilized. Its Intelligent Infrastructure exposure is central to current growth, while Regulated Industries adds exposure to automotive, healthcare, packaging and energy infrastructure. Customer concentration, working-capital needs, component availability and international operating exposure remain consequential constraints on the model.