10-Q · June 30, 2026
Jabil Inc. reported strong Q3 FY2026 results, with revenue of $8.75 billion and diluted EPS of $2.59, both exceeding consensus estimates. The Intelligent Infrastructure segment saw particularly robust growth, propelling…
Earnings analysis · 10-K
JBL earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Jabil’s fiscal 2026 results show a strong strategic shift toward AI infrastructure and engineered solutions, with revenue up 20.6% to $35.954 billion and Intelligent Infrastructure becoming half of company revenue.…
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Jabil’s fiscal 2026 results show a strong strategic shift toward AI infrastructure and engineered solutions, with revenue up 20.6% to $35.954 billion and Intelligent Infrastructure becoming half of company revenue. Margins and adjusted free cash flow improved, supported by favorable mix, lower restructuring charges, and $1.532 billion of adjusted free cash flow. The principal offsets are the FDA warning letter and production pause at Pii, sharply higher working-capital balances, customer concentration, and increased debt.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $9.75
What stood out
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AI infrastructure drove strong revenue growth
Fiscal 2026 revenue increased 20.6% to $35.954 billion from $29.802 billion, led by Intelligent Infrastructure revenue growth of 45%, including a 33% increase in cloud and data center infrastructure revenue from existing customers.
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Mix shifted toward higher-value infrastructure
Intelligent Infrastructure represented 50% of fiscal 2026 revenue, up from 41% in fiscal 2025 and 32% in fiscal 2024. Segment income increased to $1.069 billion from $664 million, with margin expanding to 6.0% from 5.4%.
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Cash generation improved materially
Adjusted free cash flow increased to $1.532 billion in fiscal 2026 from $1.318 billion in fiscal 2025 and $1.055 billion in fiscal 2024. Operating cash flow reached $2.002 billion despite inventory increasing to $7.413 billion from $4.681 billion.
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Underlying profitability and restructuring improved
Gross margin improved to 9.2% from 8.9% in fiscal 2025, primarily due to product mix in Intelligent Infrastructure. Core operating margin rose to 5.8% from 5.4%, while restructuring charges declined to $97 million from $181 million.
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Roadmap emphasizes engineered automation
Jabil is expanding its engineered and automation offering: Connected Living and Digital Commerce was renamed Intelligent Devices and Robotics effective September 1, 2026. The company also acquired Hanley for $752 million to expand rack-level data-center infrastructure capabilities and Rebound Technologies for $133 million.
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Shareholder returns remain a priority
Capital returns remained substantial: Jabil repurchased $1.060 billion of stock and paid $35 million of dividends in fiscal 2026. A new $1.5 billion repurchase authorization was approved, with $898 million remaining as of October 20, 2026.
What to watch
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FDA warning letter pauses Pii operations
On August 27, 2026, Jabil received an FDA Warning Letter regarding manufacturing practices and quality systems at the Pii facility in Hunt Valley, Maryland. Manufacturing at the site was paused, and the company said it will begin full remediation after FDA approval of its corrective-action plan; no dollar exposure was disclosed.
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Working capital and inventory exposure increased
Working-capital intensity increased materially: inventories rose to $7.413 billion from $4.681 billion, accounts receivable rose to $6.513 billion from $4.039 billion, and days in inventory increased to 82 from 69 year over year. Management attributed the inventory increase primarily to shipment timing in Intelligent Infrastructure.
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Customer and supply-chain concentration
Customer concentration remains material as the five largest customers represented approximately 37% of fiscal 2026 revenue, while Customer A alone represented 20% and accounted for 33% of accounts receivable. The company also stated that some products require components available from only a single source.
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Higher debt and financing costs
Debt increased to $3.379 billion from $2.885 billion, including the issuance of $1.0 billion of 4.200% and 4.750% senior notes. Net interest expense increased to $181 million from $147 million, and $499 million of debt is due within one year.
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Acquisition and goodwill execution risk
Fiscal 2026 included $852 million of cash paid for business and intangible-asset acquisitions, while goodwill increased to $1.225 billion from $841 million. The company’s acquisition-driven expansion increases integration and impairment risk, although its annual goodwill test found no impairment.
Management's outlook
The 10-K does not provide annual revenue or EPS guidance; annual outlook was addressed in the Q4 earnings press release/call. The MD&A does quantify fiscal 2027 net capital expenditures at 1.5% to 2.0% of net revenue.
Earlier filings 2
10-Q · April 8, 2026
Jabil reported a strong quarter and YTD with revenue of $8,282 million in the quarter (up from $6,728 million) and $16,587 million YTD (up from $13,722 million). Gross margin expanded slightly to ~9.0% for the quarter…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.