Jabil 2025 Q3 Earnings Strong Performance as Net Income Surges 72%

Jabil (JBL) reported its fiscal 2025 Q3 earnings on Jun 16th, 2025. Jabil exceeded expectations with a significant increase in net income and EPS, reflecting robust financial health. The company raised its fiscal year guidance, projecting a rise in both revenue and profitability. Jabil now expects fiscal 2025 revenue of $29 billion, up from its previous forecast of $27.9 billion, and an adjusted profit per share of $9.33. This upward revision showcases confidence in its strategic initiatives.

Revenue

The total revenue of Jabil increased by 15.7% to $7.83 billion in 2025 Q3, up from $6.76 billion in 2024 Q3.

Earnings/Net Income

Jabil's EPS rose 89.8% to $2.05 in 2025 Q3 from $1.08 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $222 million in 2025 Q3, marking 72.1% growth from $129 million in 2024 Q3. The earnings per share growth reflects a strong financial performance.

Price Action

The stock price of Jabil has edged up 1.44% during the latest trading day, has edged up 1.94% during the most recent full trading week, and has jumped 8.37% month-to-date.

Post-Earnings Price Action Review

The strategy of buying JBL shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has delivered strong returns over the past three years. This approach resulted in a compound annual growth rate of 49.89%, with an overall return of 233.53%. The Sharpe ratio of 1.39 indicates good risk-adjusted returns. However, the strategy experienced a maximum drawdown of -35.14% and exhibited a volatility of 35.88%, suggesting significant price fluctuations. Investors have seen substantial gains, but they must also consider the potential for notable price variability.

CEO Commentary

Jabil Inc. (NYSE: JBL) CEO Mike Dastoor emphasized a strong performance in the third quarter, highlighting outperformance in key sectors such as cloud and data center infrastructure, driven by AI demand. He noted that while there is softness in segments like EVs and Renewables, the company's diversified portfolio and operational discipline position Jabil for record core earnings per share. Dastoor conveyed an optimistic outlook, focusing on enhancing core margins, optimizing cash flow, and prioritizing shareholder value through share repurchases and strategic investments in higher-margin opportunities.

Guidance

Jabil anticipates fourth-quarter net revenue between $7.1 billion and $7.8 billion, with U.S. GAAP operating income of $331 million to $411 million and diluted earnings per share ranging from $1.79 to $2.37. For fiscal year 2025, the company expects net revenue of $29 billion, a core operating margin of 5.4%, core diluted earnings per share of $9.33, and adjusted free cash flow exceeding $1.2 billion.

Additional News

Jabil has announced a planned multi-year $500 million investment in U.S. manufacturing, focusing on cloud and AI data center infrastructure, as part of its ongoing expansion strategy. In leadership news, Jabil appointed a new director to its board, strengthening its governance structure. Additionally, the company declared a quarterly dividend, illustrating its commitment to returning value to shareholders. These developments underscore Jabil’s strategic focus on growth and shareholder engagement, positioning it to capitalize on emerging opportunities in key markets.