Question · Q4 2025
Steven Bryant Fox asked for details on Jabil's FY26 operating margin guidance, which projects a 20 basis point expansion on increased sales. He also inquired about the material impact of product pruning and AI investments on the 5.6% margin target, and Jabil's big-picture strategy in chillers and power management compared to traditional EMS and OEM competitors.
Answer
Greg Hebard (CFO, Jabil) attributed the 20 basis point margin pickup to an improved business mix, partially offset by headwinds from unutilized capacity outside the U.S. Andy Priestley (EVP - Global Business Units, Jabil) explained the deliberate shift to higher-margin, engineering-led products. Mike Dastoor (Director & CEO, Jabil) added that mix, efficiency (targeting 10 bps annually from automation/AI), and improved capacity utilization are key drivers for the 6%+ long-term margin goal. Greg Hebard emphasized Jabil's focus on building capabilities for global scale and configuration in chillers and power management, noting triple-digit growth in this business.