Jabil — Fiscal Year 2026 Earnings Summary

Financial Performance

• Fiscal 2026 net revenue reached $36.0 billion, a 21% increase from $29.8 billion in fiscal 2025; fourth quarter 2026 revenue was $10.6 billion compared to $8.3 billion in the prior year quarter.
• U.S. GAAP operating income for fiscal 2026 was $1.7 billion, up from $1.2 billion in fiscal 2025; fourth quarter 2026 U.S. GAAP operating income was $602 million versus $337 million in the prior year quarter.
• U.S. GAAP diluted earnings per share (EPS) for fiscal 2026 were $9.75, compared to $5.92 in fiscal 2025; fourth quarter 2026 diluted EPS was $3.76 versus $1.99 in the prior year quarter.
• Core (Non-GAAP) operating income for fiscal 2026 was $2.1 billion, up from $1.6 billion in fiscal 2025; fourth quarter 2026 core operating income was $675 million versus $519 million in the prior year quarter.
• Core (Non-GAAP) diluted EPS for fiscal 2026 was $13.09, up from $9.75 in fiscal 2025; fourth quarter 2026 core diluted EPS was $4.40 versus $3.29 in the prior year quarter.
• Adjusted free cash flow for fiscal 2026 was approximately $1.5 billion, up from $1.3 billion in fiscal 2025.
• Total assets increased to $27.4 billion at August 31, 2026, from $18.5 billion at August 31, 2025.
• Total liabilities increased to $25.8 billion at August 31, 2026, from $17.0 billion at August 31, 2025.
• Cash and cash equivalents were $1.7 billion at August 31, 2026, down from $1.9 billion at August 31, 2025.
• Accounts receivable, net, increased to $6.5 billion at August 31, 2026, from $4.0 billion at August 31, 2025.
• Inventories, net, increased to $7.4 billion at August 31, 2026, from $4.7 billion at August 31, 2025.
• Notes payable and long-term debt (including current installments) totaled $3.4 billion at August 31, 2026, compared to $2.9 billion at August 31, 2025.
• Operating margin (U.S. GAAP) for fiscal 2026 was 4.7%, up from 4.0% in fiscal 2025; fourth quarter 2026 operating margin was 5.7% versus 4.1% in the prior year quarter.
• Core operating margin (Non-GAAP) for fiscal 2026 was 5.8%, up from 5.4% in fiscal 2025; fourth quarter 2026 core operating margin was 6.4% versus 6.3% in the prior year quarter.

Guidance and Future Outlook

• First quarter fiscal 2027 net revenue is projected between $10.6 billion and $11.4 billion.
• First quarter fiscal 2027 U.S. GAAP operating income is projected between $481 million and $541 million.
• First quarter fiscal 2027 U.S. GAAP diluted EPS is projected between $2.78 and $3.18.
• First quarter fiscal 2027 core operating income (Non-GAAP) is projected between $592 million and $652 million.
• First quarter fiscal 2027 core diluted EPS (Non-GAAP) is projected between $3.80 and $4.20.
• Full fiscal 2027 net revenue guidance is $44.5 billion, representing 24% growth.
• Full fiscal 2027 core operating margin (Non-GAAP) is expected to expand 30 basis points to 6.1%.
• Full fiscal 2027 core diluted EPS (Non-GAAP) is expected to grow 34% to $17.55.
• Full fiscal 2027 adjusted free cash flow is expected to be approximately $1.6 billion.
• Management cites accelerating AI demand and solid growth in automotive, healthcare, energy infrastructure, defense, aerospace, and warehouse and retail automation as key drivers.

Business Segments and Product Lines

• The company reported significant growth in AI infrastructure.
• New capacity was brought online during the period to support customer needs.
• The company is moving up the value chain by taking on more customer engineering and manufacturing complexity while maintaining an asset-light model.
• Specific segment revenue breakdowns or product line performance details beyond the end markets listed in the outlook are not provided in the text.

Market and Competitive Landscape

• Jabil serves a diversified portfolio of customers across multiple end markets including AI, automotive, healthcare, energy infrastructure, defense, aerospace, and warehouse and retail automation.
• The company leverages a network of over 100 sites worldwide and 60 years of experience.
• Management notes opportunities to sustain profitable growth as customers seek Jabil for engineering, supply chain, and manufacturing needs.

Risks and Challenges

• Risks include dependence on a limited number of customers and suppliers for critical components.
• Potential for rapid declines or increases in customer demand.
• Risks associated with international sales, geopolitical uncertainties, and currency fluctuations.
• Challenges related to managing rapid growth, capital expenditures, and manufacturing capacity efficiency.
• Risks involving information systems security, regulatory compliance, environmental laws, and litigation.
• Potential for design or manufacturing defects and intellectual property risks.
• Risks related to acquisitions, restructuring activities, and achieving expected profitability from acquisitions.
• Exposure to energy price increases, natural disasters, and climate change.

Management Commentary and Tone

• CEO Mike Dastoor described the fourth quarter as exceeding expectations and the fiscal 2026 year as "exceptional."
• Management expressed confidence in the year ahead due to the breadth of growth, expanding customer relationships, and committed business supporting new capacity.
• The tone reflects pride in team performance and progress in building a stronger business.
• Management highlighted the ability to return substantial capital to shareholders while investing in capabilities.

Other Key Points

• Fiscal 2026 included $97 million in restructuring, severance, and related charges (fiscal 2025: $181 million).
• Fiscal 2026 included $89 million in amortization of intangibles (fiscal 2025: $62 million).
• Fiscal 2026 included $140 million in stock-based compensation expense (fiscal 2025: $107 million).
• Fiscal 2026 included a $1 million loss from the divestiture of businesses (fiscal 2025: $53 million), which primarily related to a pre-tax loss on the divestiture of operations in Italy and post-closing adjustments for the Mobility Business.
• Fiscal 2026 included $8 million of gains on forward foreign exchange contracts related to the acquisition of Hanley Energy Group.
• Cash paid for business and intangible asset acquisitions, net of cash, was $852 million in fiscal 2026, compared to $392 million in fiscal 2025.
• Payments to acquire treasury stock were $1.06 billion in fiscal 2026, compared to $1.0 billion in fiscal 2025.
• Dividends paid to stockholders were $35 million in fiscal 2026, compared to $36 million in fiscal 2025.
• Net cash provided by operating activities was $2.0 billion in fiscal 2026, up from $1.6 billion in fiscal 2025.
• Net cash used in investing activities was $1.3 billion in fiscal 2026, compared to $714 million in fiscal 2025.
• Net cash used in financing activities was $866 million in fiscal 2026, compared to $1.2 billion in fiscal 2025.
• The company held a conference call on September 30, 2026, to discuss results.