Jabil, Inc. (JBL) Earnings & Analysis

Latest quarter

Jabil reported Q4 FY2026 revenue of $10.6 billion, compared with $8.3 billion in Q4 FY2025, a 28.6% year-over-year increase. The company’s revenue as the consensus counts it was $10.6 billion, or 9.91% above the $9.7 billion consensus. Adjusted EPS as the consensus counts it was $4.40, or 8.37% above the $4.06 consensus.

The company reported diluted EPS of $3.75, compared with $1.99 a year earlier. Gross margin was 9.43%, compared with 9.49%, while operating margin was 5.67%, compared with 4.08%. Jabil reported free cash flow of $541.0 million, compared with $505.0 million in Q4 FY2025.

For the fiscal year, Jabil’s filing said Intelligent Infrastructure revenue increased primarily on cloud and data-center infrastructure, networking and communications, and capital-equipment revenue from existing customers. The filing said Regulated Industries revenue increased, while Connected Living and Digital Commerce revenue declined. The company’s published comparison with its own guidance covers Q3 FY2026, when revenue of $8.8 billion and GAAP operating income of $445.0 million were within the company’s guided ranges.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the Q4 FY2026 call, Chief Financial Officer Greg Hebard said the shape of FY2027 was expected to resemble the prior year, with margins lighter in the first half and increasing in the back half as new capacity is filled and utilized. Hebard said the company expected SG&A leverage and a better mix in the back half of the year.

Hebard said Jabil was adding 4 million square feet across the organization and expected that capacity to support revenue above its guidance. He said capital expenditures would be 1.5% to 2% of revenue, while capital spending for Intelligent Infrastructure and other areas was closer to 1% of revenue. Hebard said the company viewed those operations as asset light.

On cash generation, Hebard said Jabil anticipated more than $8 billion of growth in the coming year and therefore expected a dollar increase in net working-capital requirements. He said the company still expected to generate $1.6 billion of free cash flow.

In response to Melissa on inventories, Hebard said net inventory days were 64, down four days from Q3 but above Jabil’s 55-to-60-day target range. He said higher inventory deposits had increased as gross inventory rose, helping support the market. Hebard also cited higher commodity pricing and a larger weighting of inventories in cloud data-center infrastructure as factors in the inventory position.

In responding to Joe, Hebard said the company expected greater utilization of capacity coming online in the back half of the year.

Guidance

Jabil expects FY2027 revenue of $44.5 billion, non-GAAP core operating margin of 6.10%, non-GAAP core diluted EPS of $17.55, and non-GAAP adjusted free cash flow of $1.6 billion. The company said it expects to add 4 million square feet of capacity in FY2027. Jabil also said the Croatia facility ramp would continue in FY2027 and move into full production in FY2028.