Jabil’s fourth quarter delivered results that met Wall Street’s expectations, with strength attributed to robust demand in its Intelligent Infrastructure segment and steady contributions from Regulated Industries and Connected Living and Digital Commerce. CEO Michael Dastoor credited the company’s diversified model for the performance, highlighting particularly strong execution in cloud and data center infrastructure, as well as networking. Dastoor explained, “AI continues to be the primary driver of growth, but all three segments contributed to our better-than-expected performance.” Management also pointed to operational discipline and a healthy pipeline as factors supporting the quarter’s results.
Is now the time to buy JBL? Find out in our full research report (it’s free for active Edge members).
Jabil (JBL) Q4 CY2025 Highlights:
- Revenue: $8.31 billion vs analyst estimates of $8.00 billion (18.7% year-on-year growth, 3.8% beat)
- Adjusted EPS: $2.85 vs analyst estimates of $2.73 (4.4% beat)
- Adjusted EBITDA: $721 million vs analyst estimates of $598.3 million (8.7% margin, 20.5% beat)
- The company lifted its revenue guidance for the full year to $32.4 billion at the midpoint from $31.3 billion, a 3.5% increase
- Management raised its full-year Adjusted EPS guidance to $11.55 at the midpoint, a 5% increase
- Operating Margin: 3.4%, in line with the same quarter last year
- Market Capitalization: $25.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Jabil’s Q4 Earnings Call
- Ruplu Bhattacharya (Bank of America) asked about the impact of new hyperscale program wins and whether the raised guidance for the year remains conservative. CEO Michael Dastoor explained the upside comes from new customer ramps and recent acquisitions, stating the guidance is appropriately conservative given the healthy pipeline.
- Ruplu Bhattacharya (Bank of America) followed up on operating margin progression, inquiring about the path to 6% or higher margins. Dastoor cited better mix, higher capacity utilization, and future leverage from acquisitions as the main contributors, but refrained from making firm commitments beyond this year.
- Unknown Analyst (J.P. Morgan) asked about the scale and drivers for the second hyperscale customer and whether recent wins reflect stronger demand or execution. Dastoor responded that both factors contributed, emphasizing ongoing discussions with additional hyperscalers and a robust outlook for further growth.
- Steven Fox (Fox Advisors) questioned whether Jabil could accelerate growth in health care given its high margins. Dastoor said the company is actively exploring M&A and B2B opportunities to add capabilities and sees health care as a key diversification area.
- Melissa Dailey Fairbanks (Raymond James) asked about the outlook and geographic trends for automotive, given cautious sentiment in Europe. Dastoor reiterated a conservative near-term approach, but expects longer-term upside as new program wins materialize over the next year or two.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch for (1) the scale and profitability of new hyperscale and data center customer ramps, (2) execution on health care and regulated markets M&A to bolster high-margin growth, and (3) the integration and impact of Hanley Energy’s modular power systems. Developments in automation and warehouse robotics, as well as progress on advanced cooling retrofits, will also be important signposts.
Jabil currently trades at $235.10, up from $212.56 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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