Executive Summary

Q3 FY25 was strong: revenue $7.83B, GAAP EPS $2.03, core EPS $2.55; core operating margin reached 5.4% on AI-driven strength in Intelligent Infrastructure .
Jabil raised FY25 guidance: revenue to $29B, core EPS to $9.33, maintained core margin 5.4% and adjusted FCF $1.2B+ .
Q4 FY25 guidance implies continued AI momentum (enterprise revenue $7.1–$7.8B; core EPS $2.64–$3.04) while remaining prudent on EV/renewables and consumer .
Significant strategic catalyst: announced multi-year $500M U.S. manufacturing expansion supporting cloud/AI data center infrastructure, operational by mid-2026 .
Results beat Wall Street consensus on both revenue and EPS; estimates likely to recalibrate upward for FY25 given raised outlook (consensus context below; Values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

AI/data center infrastructure drove outsized performance: Intelligent Infrastructure revenue $3.4B (+~51% YoY) and core margins at 5.3%, supported by server rack integration and power/cooling solutions .
Core EPS $2.55 rose 35% YoY; core operating income $420M exceeded guidance range as mix and execution improved .
Strategic investment: announced ~$500M U.S. site to deepen AI rack, liquid cooling, and thermal capabilities; expected to diversify revenue growth across hyperscalers/colos .

Selected management quote:

“Our Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand… tracking toward record core earnings per share.” — CEO Mike Dastoor .

What Went Wrong

EV and renewables remained soft; Regulated Industries revenue ~$3.1B was flat YoY and margins down 50 bps YoY despite sequential improvement .
Networking/5G weakness diluted Intelligent Infrastructure segment margins, offsetting leverage from cloud/DCI ramp .
Consumer-centric products pressured Connected Living revenue (~$1.3B, down ~7% YoY), although restructuring and mix lifted segment margins to 5.3% (+210 bps YoY) .

Financial Results

Consolidated P&L and Margins (Quarterly)

Metric	Q1 2025	Q2 2025	Q3 2025
Net Revenue ($USD Billions)	$6.99	$6.73	$7.83
GAAP Operating Income ($USD Millions)	$197	$245	$403
GAAP Diluted EPS ($USD)	$0.88	$1.06	$2.03
Core Operating Income (Non-GAAP, $USD Millions)	$347	$334	$420
Core Diluted EPS (Non-GAAP, $USD)	$2.00	$1.94	$2.55
Core Operating Margin (%)	5.0%	5.0%	5.4%
Gross Profit ($USD Millions)	$606	$576	$681

Notes on non-GAAP: Core excludes amortization of intangibles, stock-based comp, restructuring, and divestiture-related items; Q3 core also excludes a recognized post-closing gain from Mobility divestiture adjustments (reclassified out of core) .

Segment Breakdown (Revenue and Margins)

Segment	Q2 2025 Revenue ($B)	Q2 YoY	Q2 Core Margin	Q3 2025 Revenue ($B)	Q3 YoY	Q3 Core Margin
Regulated Industries	~$2.7	-8%	4.8%	~$3.1	~0%	5.5%
Intelligent Infrastructure	~$2.6	+18%	5.3%	~$3.4	+~51%	5.3%
Connected Living & Digital Commerce	~$1.3	-13% (ex-Mobility +4%)	4.5%	~$1.3	-~7%	5.3%

KPIs and Cash Flow

KPI	Q1 2025	Q2 2025	Q3 2025
Inventory Days	56 (net)	80; net 61	74; net 59
Cash from Operations ($USD Millions)	$312	$334	$406
Net Capital Expenditures ($USD Millions)	$86	$73	$80
Adjusted Free Cash Flow ($USD Millions)	$226	$261	$326
Cash Balance ($USD Billions)	$2.06	$1.59	$1.52
Debt-to-Core EBITDA (x)	~1.4x	~1.4x	~1.4x
Share Repurchases ($USD Millions)	$232	$636 (cash flow)	$339

Consensus vs Actual (Quarterly)

Metric	Q2 2025	Q3 2025
Revenue Consensus Mean ($USD Billions)	$6.40*	$7.07*
Revenue Actual ($USD Billions)	$6.73	$7.83
Primary EPS Consensus Mean ($USD)	$1.83*	$2.32*
GAAP Diluted EPS Actual ($USD)	$1.06	$2.03
Core Diluted EPS Actual ($USD)	$1.94	$2.55

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue	Q4 FY25	N/A	$7.1B–$7.8B	New
GAAP Operating Income	Q4 FY25	N/A	$331M–$411M	New
GAAP Diluted EPS	Q4 FY25	N/A	$1.79–$2.37	New
Core Operating Income (Non-GAAP)	Q4 FY25	N/A	$428M–$488M	New
Core Diluted EPS (Non-GAAP)	Q4 FY25	N/A	$2.64–$3.04	New
Net Interest Expense	Q4 FY25	N/A	~$65M	New
Core Tax Rate	Q4 FY25	N/A	21%	New
Regulated Segment Revenue	Q4 FY25	N/A	~$2.9B (down ~5% YoY)	New
Intelligent Infrastructure Revenue	Q4 FY25	N/A	~$3.3B (+~42% YoY)	New
Connected Living & Digital Commerce Revenue	Q4 FY25	N/A	~$1.3B (-~21% YoY)	New
Net Revenue	FY25	$27.9B	$29.0B	Raised
Core Operating Margin	FY25	5.4%	5.4%	Maintained
Core Diluted EPS	FY25	$8.95	$9.33	Raised
Adjusted Free Cash Flow	FY25	$1.2B+	$1.2B+	Maintained
Dividend	Q4 FY25	—	$0.08/share declared, payable Sep 3, 2025	Maintained cadence

Earnings Call Themes & Trends

Topic	Q1 FY25 (Dec)	Q2 FY25 (Mar)	Q3 FY25 (Jun)	Trend
AI/data center initiatives	Deepening hyperscaler relationship; server rack integration; raised AI to ~$6.5–$7.5B	II +18% YoY; guidance raised; design/engineering yields at launch	AI-related revenue now ~$8.5B for FY25; II $3.4B in Q3	Accelerating
Tariffs/macro	Tariffs largely pass-through; 30 U.S. sites; well-positioned	Broadened scenarios (China/Canada/Mexico); USMCA compliance; prudence	Minimal pull-ins; monitoring U.S. legislation	Manageable uncertainty
EV/renewables	Softness; energy storage solid; prudent outlook	Continued caution in EV/renewables	Softness persists; Regulated flat YoY	Weak
Digital commerce/automation	Ex-Mobility +12% growth; warehouse/retail automation	Strength continues in warehouse automation	CLDC revenue down YoY but margins +210 bps; exploring humanoids/robots	Improving mix/margins
Photonics/transceivers	Intel acquisition enabling 100–400G; 800G/1.6T roadmap	800G ramp; 1.6T timing toward year-end	1.6T showcased; ramp expected late CY25/early CY26	Ramping
Capital allocation	80% FCF to buybacks; completing $1B auth in FY25	$364M remaining; on track	$339M repurchased; plan to complete $1B in Q4; likely renewal Jul–Sep	Consistent
U.S. manufacturing footprint	Local-for-local emphasis; rapid site ramp capability	Prepared for potential reverse lift-and-shift	Announced ~$500M Southeast U.S. site, operational mid-2026	Scaling
Healthcare/PII	PII acquisition; GLP-1/diagnostics opportunities	TAM expansion; long qualification cycles	Healthcare a bright spot; focus on drug delivery/diagnostics/pharma solutions	Building

Management Commentary

Strategic positioning: “Being a U.S. domiciled company with deep experience across 30 countries allows us to partner with customers to navigate issues like potential tariffs and supply chain complexities…” — CEO Mike Dastoor .
AI momentum: “Demand for AI hardware is not slowing down… we now project our AI-related revenue will reach approximately $8.5 billion this fiscal year, a 50%+ increase year on year.” — CEO Mike Dastoor .
Margin path: “We find ourselves with underutilized capacity… expect ~20 bps from better utilization, ~20 bps from SG&A leverage, ~20 bps from mix over the next 2–3 years” — CEO Mike Dastoor .
Capital allocation: “Returning 80% of our free cash flow to buybacks… on track to complete our current $1 billion authorization in Q4” — CFO Greg Hebard .

Q&A Highlights

Tariff/pull-in risk: Management sees minimal pull-ins; cloud/DCI and capital equipment are U.S.-centric with limited tariff impact; reciprocal tariffs could level the playing field for manufacturing .
Intelligent Infrastructure margins: Flat at 5.3% despite ~$800M revenue increase due to incremental investments and 5G dilution; leverage expected as scale builds .
U.S. expansion rationale: ~$500M site supports diversified hyperscaler/colo base; broader AI ecosystem (liquid cooling, power management) targeted; CapEx still 1.5–2% of revenue .
Photonics trajectory: 200/400G moving to 800G; 1.6T well received at OFC, expecting uptick late CY25/early CY26; photonics ramping toward ~$0.75–$0.83B near term with potential to $1B+ longer term .
Capital returns and leverage: Committed 80% FCF to buybacks; debt-to-EBITDA ~1.4x, leaving capacity for tuck-in M&A and potential larger accretive deals if warranted .

Estimates Context

Q3 FY25 beat: Revenue $7.83B vs consensus ~$7.07B; GAAP EPS $2.03 and core EPS $2.55 vs consensus ~$2.32 — both significant beats (Values retrieved from S&P Global) .
Q2 FY25 beat: Revenue $6.73B vs consensus ~$6.40B; GAAP EPS $1.06 and core EPS $1.94 vs consensus ~$1.83 (Values retrieved from S&P Global) .
FY25 outlook raised (revenue and EPS), implying potential upward revisions to full-year estimates as AI momentum increases and free cash flow tracks $1.2B+ .

Key Takeaways for Investors

AI infrastructure is the core growth engine; projected FY25 AI revenue ~$8.5B underpins raised full-year revenue/EPS guidance — a continued positive driver into Q4 and FY26 setup .
Margin trajectory constructive: enterprise core margin already 5.4%; utilization, SG&A leverage, and higher-margin mix offer a path toward 6%+ over time .
Balanced prudence: Management remains conservative on EV/renewables and consumer; segment guidance reflects caution while cloud/DCI strength persists .
Capital allocation is shareholder-friendly: ~80% of FCF to buybacks; $339M repurchased in Q3; likely authorization renewal in Jul–Sep .
Strategic U.S. footprint expansion: ~$500M site enhances domestic AI manufacturing capability; multi-year ramp with impact expected from FY27 — supports long-term growth narrative .
Cash flow resilience: Year-to-date adjusted FCF $813M; tracking $1.2B+ for FY25; debt/EBITDA ~1.4x provides flexibility for tuck-in M&A and vertical integration opportunities .
Trading implications: Near term, sustained AI momentum and raised FY25 guide are catalysts; watch tariff headlines and 5G softness for sentiment swings while focusing on Q4 execution within guidance ranges .

Additional Document References

Q3 FY25 8-K and Exhibit 99.1 (press release): revenue/EPS/guidance and non-GAAP reconciliations .
Q3 FY25 earnings call: segment performance, KPIs, Q&A detail .
U.S. expansion press release (June 17, 2025): $500M investment announcement .
Dividend press release (July 17, 2025): $0.08/share declaration .
Prior quarters: Q2 FY25 8-K/press release and call for trend analysis ; Q1 FY25 8-K/call for baseline .

JABIL INC (JBL)·Q3 2025 Earnings Summary