Jabil (NYSE:JBL) Posts Earnings Results, Beats Estimates By $0.35 EPS

Jabil (NYSE:JBL) posted its quarterly earnings results on Wednesday. The technology company reported $4.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.05 by $0.35, reports. The business had revenue of $10.62 billion during the quarter, compared to analyst estimates of $9.69 billion. Jabil had a net margin of 2.57% and a return on equity of 83.93%. The firm’s revenue was up 28.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.29 earnings per share. Jabil updated its Q1 2027 guidance to 3.800-4.200 EPS and its FY 2027 guidance to 17.550-17.550 EPS.

Here are the key takeaways from Jabil’s conference call:

• Jabil expects fiscal 2027 revenue of approximately $44.5 billion, up 24% year over year, with core EPS of $17.55, up about 34%, and core operating margin expanding 30 basis points to 6.1%.
• Intelligent Infrastructure remains the primary growth engine, with expected revenue of $25.6 billion, up 43%, including $22.1 billion of AI-related revenue, up 54%; growth is supported by cloud infrastructure, networking, liquid cooling, power, and semiconductor equipment.
• Management emphasized broadening diversification beyond AI, including expected growth in defense and aerospace, automotive, healthcare, renewable and energy infrastructure, and warehouse and retail automation. Digital Commerce and Robotics is forecast to grow 11%, although this will be offset by a projected 15% decline in Connected Living.
• The company plans to maintain its asset-light model, with net capital expenditures targeted at 1.5%–2% of revenue and approximately $1.6 billion of fiscal 2027 free cash flow. Jabil also reiterated its commitment to return at least 80% of adjusted free cash flow to shareholders, supported by a new $1.5 billion repurchase authorization.
• Execution and supply-chain risks remain significant as Jabil ramps roughly 4 million square feet of new capacity. Management cited constrained memory availability, higher working-capital needs, and front-loaded ramp costs, with margins expected to be lower in the first half before improving as utilization and yields rise.

Jabil Stock Performance

Jabil stock traded down $32.63 during trading hours on Wednesday, hitting $286.21. The stock had a trading volume of 2,885,895 shares, compared to its average volume of 1,211,343. The company has a 50-day moving average of $318.09 and a two-hundred day moving average of $325.39. The company has a quick ratio of 0.66, a current ratio of 0.98 and a debt-to-equity ratio of 2.17. The company has a market cap of $29.99 billion, a PE ratio of 35.70, a price-to-earnings-growth ratio of 0.71 and a beta of 1.29. Jabil has a fifty-two week low of $189.60 and a fifty-two week high of $428.93.

Jabil Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 2nd. Investors of record on Friday, August 14th were paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 0.1%. The ex-dividend date was Friday, August 14th. Jabil’s payout ratio is currently 4.00%.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on JBL shares. Argus set a $475.00 price objective on shares of Jabil in a research note on Thursday, June 18th. Zacks Research lowered shares of Jabil from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Stifel Nicolaus set a $460.00 price target on shares of Jabil and gave the company a “buy” rating in a report on Thursday, June 18th. JPMorgan Chase & Co. increased their price objective on Jabil from $395.00 to $450.00 and gave the stock an “overweight” rating in a report on Thursday, June 18th. Finally, UBS Group upgraded Jabil from a “neutral” rating to a “buy” rating and set a $430.00 target price on the stock in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Jabil presently has an average rating of “Buy” and a consensus price target of $441.78.

Key Stories Impacting Jabil

Here are the key news stories impacting Jabil this week:

• Positive Sentiment: Jabil reported fiscal fourth-quarter revenue of $10.62 billion, well above the $9.69 billion analyst consensus, while earnings exceeded expectations at approximately $4.17-$4.40 per share versus estimates near $4.05-$4.06. Revenue increased 28.6% year over year, and full-year fiscal 2026 revenue grew 21%. Jabil quarterly earnings report
• Positive Sentiment: Management forecast fiscal 2027 EPS of $17.55 and revenue of $44.5 billion, above consensus estimates of $16.58 and $42.6 billion, respectively. First-quarter fiscal 2027 guidance also exceeded expectations, with EPS guidance of $3.80-$4.20 and revenue guidance of $10.6-$11.4 billion. Jabil forecasts full-year results above estimates
• Positive Sentiment: Demand from AI data centers is a key growth driver. Jabil also highlighted more than $1.5 billion in adjusted free cash flow and a 40-basis-point expansion in core operating margin during fiscal 2026. Jabil fiscal 2026 results
• Neutral Sentiment: Analysts’ average price target implies roughly 35% potential upside, and positive earnings-estimate revisions and strong momentum could support the stock. However, the article cautions that consensus price targets are an imperfect indicator. Jabil analyst price targets
• Negative Sentiment: The immediate decline suggests a “sell-the-news” reaction: investors may have expected an even stronger outlook after Jabil’s roughly 448% prior run. With the stock trading at a relatively elevated earnings multiple, strong results may not have been sufficient to trigger additional buying. Jabil posts strong earnings but stock falls

Insider Buying and Selling at Jabil

In other news, EVP Matthew Crowley sold 94 shares of Jabil stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $345.00, for a total transaction of $32,430.00. Following the sale, the executive vice president directly owned 57,536 shares in the company, valued at approximately $19,849,920. The trade was a 0.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.35% of the company’s stock.

About Jabil

Jabil Inc is a global manufacturing services and technology company that helps brands design, manufacture, and manage products and supply chains. Its capabilities include product design and engineering, prototyping, production, assembly, testing, packaging, logistics, and aftermarket services.

The company serves customers across a range of industries, including healthcare, automotive, cloud and data infrastructure, communications, connected devices, industrial equipment, energy, and consumer products.