Jabil 2026 Q1 Earnings Strong Performance as Net Income Surges 46%

Jabil (JBL) reported Q1 fiscal 2026 earnings on Dec. 17, 2025, surpassing revenue and profit expectations while raising full-year guidance. The electronics manufacturing giant delivered a 18.7% year-over-year revenue increase and a 53.9% EPS growth, driven by AI infrastructure demand and strategic acquisitions.

Revenue

Driven by Intelligent Infrastructure’s 42% growth to $3.76 billion, Jabil’s total revenue surged to $8.30 billion in Q1 2026, up from $6.99 billion a year earlier. Regulated Industries and Connected Living segments also contributed, with healthcare resilience and automation initiatives supporting diversified growth.

Earnings/Net Income

Jabil’s EPS rose to $1.37, a 53.9% year-over-year increase, while net income expanded by 46.0% to $146 million. These results underscore the company’s margin expansion and operational efficiency, with AI-driven demand and cost discipline amplifying profitability.

Post-Earnings Price Action Review

The strategy of buying JBL when revenues miss and holding for 30 days resulted in a 596.86% return, significantly outperforming the benchmark return of 87.47%. The strategy’s excess return was 509.39%, with a CAGR of 47.90%. Although the strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 1.38, it also exhibited high volatility, with a 34.77% drawdown.

CEO Commentary

CEO Mike Dastoor credited Jabil’s performance to a diversified portfolio and AI-driven growth, particularly in cloud and data center infrastructure. He highlighted a 35% year-over-year AI revenue increase to $12.1 billion and reaffirmed priorities including margin expansion, capital efficiency, and buybacks.

Guidance

Jabil raised FY 2026 revenue guidance to $32.4 billion (from $31.3 billion) and core operating margins to 5.7% (from 5.6%). Q2 revenue is expected to range between $7.5–8.0 billion, with core diluted EPS of $2.27–2.67.

Additional News

Jabil announced the acquisition of Hanley Energy Group, a modular power solutions provider, to bolster its Intelligent Infrastructure segment. The $783 million deal, expected to close in January 2026, adds $200 million in annual revenue. CEO Mike Dastoor emphasized AI and cloud infrastructure as growth pillars, with Connected Living and Regulated Industries segments showing resilience. The company also reiterated its commitment to share repurchases, citing strong free cash flow generation and a target of >$1.3 billion in adjusted free cash flow for FY 2026.