Jabil 2025 Q3 Earnings Beats Expectations as Net Income Surges 72.1%

Jabil (JBL) reported its fiscal 2025 Q3 earnings on June 30th, 2025. Jabil surpassed analyst estimates with net revenue reaching $7.83 billion, exceeding the expected $7.059 billion. The company's adjusted EPS also beat projections, coming in at $2.55 compared to the consensus of $2.31, reflecting a robust performance. Jabil raised its guidance for the fourth quarter, projecting net revenues between $7.1 billion and $7.8 billion, and an adjusted EPS of $2.64 to $3.04. For fiscal 2025, the company anticipates revenues of approximately $29 billion and non-GAAP earnings per share of $9.33, indicating continued growth momentum.

Revenue
Jabil reported an impressive 15.7% increase in total revenue for 2025 Q3, reaching $7.83 billion compared to $6.76 billion in 2024 Q3. The Regulated Industries segment contributed $3.06 billion, while Intelligent Infrastructure generated $3.43 billion. The Connected Living and Digital Commerce segment added $1.34 billion, culminating in a total revenue of $7.83 billion for the quarter.

Earnings/Net Income
Jabil's EPS rose significantly by 89.8% to $2.05 in 2025 Q3 from $1.08 in 2024 Q3. Net income also saw substantial growth, increasing 72.1% to $222 million from $129 million in the previous year. The EPS performance was notably strong, demonstrating Jabil's earning potential.

Post Earnings Price Action Review
Jabil’s post-earnings strategy of purchasing shares when revenue exceeds expectations and holding for 30 days has proven effective, yielding a substantial return of 515.35%. This performance significantly outpaces the benchmark return of 68.06%, resulting in an excess return of 447.28%. With a compound annual growth rate of 46.09%, the strategy showcases robust growth potential. Despite experiencing a maximum drawdown of -35.69%, it maintains a relatively high Sharpe ratio of 1.34, indicating favorable risk-adjusted returns. The volatility rate of 34.40% reflects the dynamic market activity and inherent risks associated with the technology sector. Overall, this approach underscores Jabil's ability to capitalize on favorable earnings outcomes, offering promising returns despite the associated market volatility.

CEO Commentary
CEO Mike Dastoor highlighted Jabil's strong third-quarter performance, stating, "We delivered a strong third quarter, outperforming expectations across key end-markets." He emphasized that the Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand, while acknowledging challenges in areas like electric vehicles, renewables, and 5G. Dastoor underscored the importance of Jabil's diversified portfolio and operational discipline, which have positioned the company toward achieving record core earnings per share. He conveyed an optimistic outlook on enhancing core margins, optimizing cash flow, and returning value to shareholders through share repurchases and targeted investments.

Guidance
Jabil expects fourth-quarter revenues to range between $7.1 billion and $7.8 billion, with non-GAAP earnings per share projected between $2.64 and $3.04. For fiscal year 2025, the company anticipates revenues of approximately $29 billion and non-GAAP earnings per share of $9.33. Management indicated that the cloud, data center infrastructure, capital equipment, and digital commerce markets will be significant growth drivers moving forward.

Additional News
In a strategic move to bolster its manufacturing capabilities, Jabil announced a $500 million investment aimed at expanding its footprint in the Southeast United States. This investment is intended to support growing demand in cloud and AI data center infrastructure, enhancing Jabil's capacity to cater to hyperscalers and AI ecosystem components such as liquid cooling and power management. The company is in the final stages of selecting a site, with operations expected to commence by mid-2026. This expansion reflects Jabil's commitment to adapting to market demands and positioning itself as a key player in the AI-driven technological landscape, aligning with national security interests.