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JABIL INC (JBL)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 was a strong finish: revenue $8.25B, GAAP EPS $1.99, and core EPS $3.29; revenue and core EPS both exceeded the Q4 guidance range, driven by broad-based outperformance across segments and particularly AI-related demand in Intelligent Infrastructure .
  • Versus Street, Jabil delivered a material revenue and core EPS beat; EBITDA missed consensus, reflecting mix and incremental investments amid rapid AI scale-up; Q1 FY26 guidance points to continued strength with revenue $7.7–$8.3B and core EPS $2.47–$2.87 .
  • FY26 outlook: revenue ~$31.3B, core operating margin 5.6%, core EPS $11.00, adjusted FCF >$1.3B, supported by AI infrastructure, healthcare, and automation; dividend declared at $0.08 per share and a $1B buyback authorization to be fully executed in FY26 .
  • Key catalysts: accelerating AI system-level ramps (racks, power, cooling, photonics), margin mix improvement, healthcare pipeline wins, and new U.S. capacity (North Carolina) to relieve AI capacity constraints in FY27+ .

What Went Well and What Went Wrong

What Went Well

  • Intelligent Infrastructure upside: revenue reached $3.7B (+$0.4B above expectations) with core margin 5.9%; gains came from faster-than-planned efficiency in 24/7 operations, favorable mix, and a faster ramp of a second hyperscaler in storage .
  • Broad-based beat in Q4: enterprise revenue ~+$0.8B above midpoint of guidance; core operating income $519M, above the high end of guidance; core margin improved to 6.3% (+50 bps YoY) .
  • Portfolio actions lifted margins in CLDC: despite consumer softness, CLDC revenue $1.4B and core margin 6.6% (+210 bps YoY), reflecting pruning lower-margin programs and shift to warehouse/retail automation .

Management quotes:

  • “Driven by strong underlying revenue growth, core operating income for the quarter came in at $519 million, well above the high end of our expected range… core operating margin was 6.3%” .
  • “Strength in AI-driven demand across capital equipment, data centers, and networking… more than offset pressures in Automotive and Renewables” .

What Went Wrong

  • EBITDA missed Street despite revenue/EPS beats, as rapid AI scale required incremental investments and mix created pressure within Intelligent Infrastructure; 5G softness diluted segment margins .
  • Regulated Industries faced continued EV and renewables headwinds; company guides FY26 auto/transport down ~5% and FY26 Regulated Industries flat on revenue with margin expansion from healthcare .
  • Underutilized capacity outside the U.S. remains a 20–25 bps headwind to margins; capacity mismatch persists as AI ramps are U.S.-centric while surplus capacity is ex-U.S. .

Financial Results

Quarterly P&L and Margins

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Billions)$6.728 $7.828 $8.252
GAAP Diluted EPS ($)$1.06 $2.03 $1.99
Core Diluted EPS (Non-GAAP) ($)$1.94 $2.55 $3.29
Core Operating Margin %5.4% 5.4% 6.3%
GAAP Operating Income ($USD Millions)$245 $403 $337
Core Operating Income (Non-GAAP) ($USD Millions)$334 $420 $519
Gross Profit ($USD Millions)$576 $681 $783

Segment Performance

SegmentQ3 2025 Revenue ($B)Q3 2025 Core Margin %Q4 2025 Revenue ($B)Q4 2025 Core Margin %
Regulated Industries$3.1 5.5% $3.1 6.5%
Intelligent Infrastructure$3.4 5.3% $3.7 5.9%
Connected Living & Digital Commerce$1.3 5.3% $1.4 6.6%

Operating KPIs

KPIQ3 2025Q4 2025
Inventory Days74 69
Net Inventory Days (incl. deposits)59 55
Cash from Operations ($USD Millions)$406 $588
Net CapEx ($USD Millions)$80 $83
Cash and Equivalents ($USD Millions)$1,523 $1,933
Debt-to-Core EBITDA (x)1.4x 1.3x
Adjusted Free Cash Flow ($USD Millions)$813 YTD $1,318 FY

Q4 FY25 Actuals vs Street and Guidance

MetricCompany Guidance (Q4 FY25)Street Consensus*ActualSurprise
Revenue ($USD Billions)$7.1–$7.8 $7.6689*$8.252 Beat (above guidance high and Street*)
Primary/Core EPS ($)$2.64–$3.04 $2.9456*$3.29 Beat (above guidance high and Street*)
EBITDA ($USD Millions)N/A$708.5*$534*Miss vs Street*

Values retrieved from S&P Global.*

Drivers:

  • Revenue/CORE EPS beat: II segment efficiency and mix, storage ramps; RI upside from incentive-driven pull-forwards; CLDC margin accretion via portfolio pruning .
  • EBITDA miss: incremental investments and mix within II; ongoing 5G softness diluting segment margins .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($B)Q4 FY25$7.1–$7.8 $8.252 (Actual) Beat high end
Core Diluted EPS ($)Q4 FY25$2.64–$3.04 $3.29 (Actual) Beat high end
GAAP Diluted EPS ($)Q4 FY25$1.79–$2.37 $1.99 (Actual) In range
Revenue ($B)Q1 FY26N/A$7.7–$8.3 New
Core Op Income ($M)Q1 FY26N/A$400–$460 New
GAAP Op Income ($M)Q1 FY26N/A$263–$343 New
Core Diluted EPS ($)Q1 FY26N/A$2.47–$2.87 New
GAAP Diluted EPS ($)Q1 FY26N/A$1.27–$1.84 New
Net Interest Expense ($M)Q1/FY26N/A~$64 (Q1); $240–$250 (FY) New
Core Tax Rate (%)Q1/FY26N/A21% Maintained
FY26 Revenue ($B)FY26N/A$31.3 New
FY26 Core Op Margin (%)FY26N/A5.6% New
FY26 Core EPS ($)FY26N/A$11.00 New
FY26 Adjusted FCF ($B)FY26N/A>$1.3 New
Segment Revenue ($B)Q1 FY26N/ARI $3.05; II $3.67; CLDC $1.29 New
Dividend ($/share)N/AN/A$0.08 (Dec 2 pay, Nov 17 record) Announced
Share RepurchaseFY26$1B auth (Jul) Execute fully in FY26 Maintained

Earnings Call Themes & Trends

TopicQ2 FY25 MentionsQ3 FY25 MentionsQ4 FY25 (Current)Trend
AI/data center infrastructureStrength in capital equipment, cloud & data center; U.S.-domiciled footprint advantage Announced new U.S. site; AI revenue ~$8.5B FY25; racks, power, cooling; photonics ramp II revenue beat: efficiency/mix/storage ramp; AI revenue to ~$11.2B FY26; U.S. capacity constraints addressed via new NC facility Accelerating
Supply chain/regionalizationEmphasized region-for-region manufacturing amid geopolitics Expanded U.S. footprint; >30 U.S. sites; local-for-local continues Retrofitting U.S. factories for liquid cooling; leveraging network capacity Improving
Tariffs/macroGeopolitical/tariff dynamics monitored Minimal Q3 pull-ins; monitoring evolving legislation Section 232 healthcare impacts likely net positive for U.S. production (PII) Mixed but manageable
Healthcare pipelineFocus on drug delivery, diagnostics; PII opening doors Healthcare a bright spot; longer incubation; margin accretive Growth at/above ~5%; Croatia on-track for FY27; new wins incl. CGMs, auto-injectors; sterilization capability leveraged Improving
Automotive/EVSoftness persists Prudent view; EV/renewables soft; monitoring legislation FY26 auto/transport down ~5%; China OEM wins offset some weakness Soft
5G networkingSoftness in 5G demand 5G dilutive to margins Continued softness; networking ex-5G accretive; photonics ramping Soft
Digital commerce/roboticsStrength; structural labor/fulfillment investment Higher margin focus; HUMANOIDS future option CLDC margin expansion via mix shift; largest manufacturing provider in digital commerce/automation Improving

Management Commentary

  • CEO: “Fiscal 2025 was a strong year for Jabil as we grew revenue, delivered solid core margins, increased core diluted EPS, and generated robust free cash flow… Strength in AI-driven demand… more than offset pressures in Automotive and Renewables” .
  • CFO: “Core operating income for the quarter came in at $519 million… core operating margin was 6.3% of revenue, representing a 50 bps improvement year over year” .
  • Intelligent Infrastructure lead: “We reached efficiency faster than planned… moved multiple sites to 24/7 operations… benefited from a more favorable mix… ramped our second hyperscaler faster than expected” .
  • CEO on FY26: “We expect approximately 5% revenue growth to about $31.3B… core operating margin ~5.6%… core EPS $11… free cash flow >$1.3B” .

Q&A Highlights

  • AI growth and share: Management sees 25% growth in AI revenue FY26 ($11.2B) and no share loss; gaining share in data center infrastructure; networking growing ~25% with 5G diluting .
  • Healthcare: Growth at/above ~5%; Croatia facility on track for FY27; new wins in CGMs and auto-injectors; sterilization capability leveraged; PII integration progressing .
  • Capacity and margins: Retrofitting U.S. sites for liquid-cooled infrastructure; underutilized ex-U.S. capacity remains 20–25 bps margin headwind; margin trajectory supported by mix, efficiency, and utilization .
  • New NC site: 500k sq ft, scaling from 12MW to 80MW over three years; CapEx $75–$100M in 2026; meaningful contribution from FY27; demand sufficient to fill .
  • Tariffs/Section 232: Potential net positive for U.S. pharma production; healthcare and auto are region-for-region, limiting tariff impact .

Estimates Context

  • Street (S&P Global) Q4 FY25 consensus: Revenue $7.67B*, Primary EPS $2.95*, EBITDA $708M*; Jabil delivered revenue $8.25B and core EPS $3.29 (beats), EBITDA $534M* (miss)* .
  • Q1 FY26 Street: Revenue ~$8.07B*, Primary EPS ~$2.72* vs company guide revenue $7.7–$8.3B and core EPS $2.47–$2.87 .

Values retrieved from S&P Global.*

Where estimates may adjust:

  • Increase for AI-related segments (racks, power, cooling) given persistent demand and segment guidance; healthcare estimates likely trend higher on new wins and pipeline conversion; maintain caution on EV/renewables and 5G.

Key Takeaways for Investors

  • Narrative remains AI-led: system-level integration across racks, power, and liquid cooling is differentiating Jabil; expect continued revenue/margin leverage as U.S. capacity scales .
  • Mix and operational discipline are lifting margins: CLDC pruning and healthcare pipeline support margin expansion; underutilization margin drag should ease with demand normalization and capacity absorption .
  • FY26 set-up: 5% revenue growth, core margin 5.6%, core EPS $11, FCF >$1.3B provide visibility; dividend and $1B buyback underscore shareholder returns .
  • Watch 5G and EV/renewables: ongoing softness remains a headwind; healthcare and China auto OEM wins are partial offsets .
  • Capacity catalyst: North Carolina facility (mid-2026) is the release valve for AI demand; expect more pronounced impact in FY27–FY28 .
  • Near-term trading: beat-and-raise setup into FY26 with robust Q1 guide; Street may lift revenue/core EPS for AI, while scrutinizing EBITDA/mix and 5G/EV drags.