What is the market's earnings forecast for Jabil next quarter?

Did Jabil beat or miss consensus estimates last quarter?

What is Jabil's gross profit margin?

What factors drove the changes in Jabil's revenue and profit?

What does Jabil do and what are its main business segments?

What guidance did Jabil's management provide for the next earnings period?

What is Jabil's latest dividend and current dividend yield?

What were the key takeaways from Jabil's earnings call?

- **AI-Driven Growth**: FY 2026 AI revenue to reach $11.2 billion (+25%), fueled by 24/7 U.S. manufacturing and new North Carolina facility. 
- **Health Care Expansion**: Mid-single-digit growth in health care from GLP-1 devices and Pii CDMO wins, offsetting 5% decline in automotive.
- **Margin Expansion**: 20 bps core margin improvement to 5.6% despite 20-25 bps headwind from underutilized capacity.
- **Capital Allocation**: $1.3 billion+ free cash flow, 80% returned to shareholders via buybacks/dividends. $75-100M invested in AI infrastructure.
- **Geopolitical Resilience**: 46% revenue from Americas in FY 2025, balanced regional footprint reduces tariff risk.

**【CEO Summary Section】**
- **FY 2025 Performance**: Revenue reached $30.3 billion, with AI-related revenue growing 25% to $9 billion. Core operating margin expanded to 5.4%, driven by margin improvements in health care and intelligent infrastructure.
- **FY 2026 Outlook**: Revenue expected to grow 5% to $31.3 billion. Core operating margin to expand 20 basis points to 5.6%. AI-related revenue projected to reach $11.2 billion, up 25% year-over-year.
- **Strategic Priorities**: Invest in AI infrastructure, health care, and digital commerce; return 80% of free cash flow to shareholders; maintain investment-grade balance sheet.
- **Long-Term Goals**: Target 6%+ core operating margin and $1.5 billion+ free cash flow by leveraging system-level capabilities, automation, and regional manufacturing.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $8.3 billion (vs. $8.0 billion midpoint guidance), core operating income $519 million (vs. $450-480 million range). Core EPS $3.29, up 18% year-over-year.
- **Cash Flow**: Adjusted free cash flow $1.3 billion for FY 2025. Share buybacks completed $1 billion program, with new $1 billion authorization for FY 2026.
- **Balance Sheet**: Debt-to-core EBITDA 1.3x, cash $1.9 billion. Net CapEx 1.1% of revenue, with $75-100 million allocated to new North Carolina AI facility.

**【Q&A Highlights】**
- **AI Growth**: 25% AI revenue growth in FY 2026, driven by liquid-cooled rack manufacturing and hyperscale customer expansion. New North Carolina facility to add 80 MW capacity by FY 2027.
- **Health Care Expansion**: Health care revenue expected to grow mid-single digits, supported by GLP-1 auto-injectors and Pii CDMO wins. Croatia facility on track for FY 2027 launch.
- **Margin Dynamics**: FY 2026 margin expansion (20 bps) offset by 20-25 bps headwind from underutilized non-U.S. capacity. Long-term margin improvement via automation, mix shift, and capacity utilization.
- **Geopolitical Strategy**: U.S. manufacturing prioritized (30+ sites) with 46% revenue from Americas in FY 2025. India investments focused on domestic demand, with no immediate tariff impact on decision-making.


Jabil Inc. (JBL) Q4 2025 Earnings Call Transcript

- **Record Q3 Growth**: $7.8B revenue (+16% YoY), core EPS $2.55 (+35% YoY), driven by 51% surge in AI-related infrastructure. 
- **$500M U.S. Expansion**: New AI/data center factory to support 2027+ growth, with 1.5%-2% annualized CapEx. 
- **Margin Ambition**: Targeting 6%+ operating margin via utilization, SG&A leverage, and high-margin AI solutions. 
- **Free Cash Flow**: $1.2B+ FY25, with 80%+ allocated to buybacks. 
- **Risk Management**: Prudent EV/renewables outlook offset by health care and digital commerce growth.

**【Management Opening Remarks】**
Adam Berry kicked off the call, highlighting Jabil's strong Q3 performance and emphasizing the company's strategic focus on AI-driven growth and U.S. manufacturing expansion. He noted the importance of the upcoming Virtual Investor Briefing in September for further updates on fiscal 2026 outlook.

**【CFO Financial Commentary】**
- **Q3 Results**: Revenue of $7.8 billion (+16% YoY), core operating income of $420 million, and core EPS of $2.55 (+35% YoY). 
- **Segment Performance**: 
  - *Intelligent Infrastructure*: $3.4 billion (+51% YoY), driven by cloud, data center, and AI-related demand. 
  - *Connected Living & Digital Commerce*: $1.3 billion (-7% YoY) due to consumer product softness, but margin improvement to 5.3%. 
- **Q4 Guidance**: Revenue $7.1-7.8 billion, core EPS $2.64-3.04. Free cash flow expected to exceed $1.2 billion for FY25. 
- **Capital Allocation**: $339 million in share buybacks Q3, with $1 billion authorization on track for Q4 completion.

**【CEO Commentary】**
- **Strategic Investments**: $500 million U.S. manufacturing expansion for AI/data center infrastructure, with first site operational mid-2026. 
- **Margin Outlook**: Targeting 6%+ operating margin through capacity utilization (20bps), SG&A leverage (20bps), and higher-margin business mix (20bps). 
- **Segment Growth**: Health care and digital commerce (warehouse automation, robotics) as key growth drivers. 
- **Risk Management**: Diversified portfolio mitigates EV/renewables headwinds; U.S. manufacturing reduces tariff exposure.

**【Q&A Highlights】**
- **AI Growth**: Q3 AI-related revenue $8.5 billion (+50% YoY), with 2026+ expansion driven by hyperscalers and liquid cooling. 
- **Margin Pressures**: Networking (5G) dilutive, but photonics/transceivers (+200/400G) growing 3x+ in 2025. 
- **Capacity Utilization**: 75% global (vs. 85% target), with U.S. sites underutilized due to AI demand mismatch. 
- **M&A Strategy**: Capability-driven (e.g., photonics, liquid cooling) over buybacks, with 1.4x debt/EBITDA allowing flexibility.

Jabil (JBL)-17 Jun 25-2025 Q3 Earnings call transcript

- **AI-Driven Growth**: AI-related revenue to reach $7.5 billion (+40% YoY), led by data center infrastructure and photonics.
- **U.S. Manufacturing Advantage**: 30 U.S. sites and 80-90% Mexico business compliant with U.S. MCA support tariff mitigation.
- **Healthcare Expansion**: $20 billion addressable market via PII acquisition in aseptic drug manufacturing.
- **FY25 Financials**: $27.9 billion revenue, 5.4% core margins, $8.95 EPS, >$1.2 billion free cash flow.
- **Key Risks**: Prudent outlook for EVs, renewables, and 5G; 13% sequential decline in Connected Living.

**【Management Opening Remarks】**
- Adam Berry welcomed participants and highlighted the company's strong Q2 performance, emphasizing resilience and strategic positioning amid geopolitical uncertainties.

**【CFO Financial Commentary】**
- **Q2 2025 Results**: Revenue of $6.7 billion (3% YoY growth excluding divested mobility business). Core operating income of $334 million, with 5% core margins.
- **Segment Performance**: 
  - **Regulated Industries**: $2.7 billion revenue (-8% YoY) due to EV and renewable energy weakness, but margin improved 20bps to 4.8%.
  - **Intelligent Infrastructure**: $2.6 billion revenue (+18% YoY), driven by AI, cloud, and data center growth. Margin expanded 110bps to 5.3%.
  - **Connected Living & Digital Commerce**: $1.3 billion revenue (-13% YoY), but +4% ex-mobility. Sequential decline due to holiday seasonality.
- **Cash Flow**: Q2 free cash flow of $261 million, with FY25 guidance >$1.2 billion. Debt-to-core EBITDA at 1.4x, $1.6 billion cash.
- **Q3 Guidance**: Revenue $6.7-7.3 billion, core EPS $2.08-2.48. FY25 outlook: $27.9 billion revenue, 5.4% core margins, $8.95 EPS.

**【CEO Strategic Remarks】**
- **AI & Infrastructure Growth**: AI-related revenue expected to reach $7.5 billion (+40% YoY), driven by servers, photonics, and liquid-cooled data centers. Expansion in India for photonics capabilities.
- **Healthcare Expansion**: Acquisition of PII to enter $20 billion aseptic drug manufacturing market, complementing existing auto-injector expertise.
- **Tariff Resilience**: U.S.-based manufacturing advantage with 30 U.S. sites. 80-90% of Mexico business compliant with U.S. MCA. Quick factory setup capability (e.g., 6-month hyperscale build).
- **Segment Outlook**: Prudent on EVs and renewables, optimistic on digital commerce (+14% FY25) and healthcare.

**【Q&A Highlights】**
- **Tariff Strategy**: Customers exploring U.S. manufacturing shifts, but end-market specific. Jabil's U.S. footprint and automation expertise enable rapid capacity expansion.
- **Cloud & AI Momentum**: Q2 AI revenue up 40% YoY, with hyperscale testing gear and photonics driving growth. 1.6Tbps photonics showcased at OFC 2025.
- **Margin Management**: CLDC segment seasonal weakness offset by digital commerce growth. Intelligent Infrastructure margins improving due to mix shift.
- **Future Opportunities**: Expansion in India for sovereign data centers. CPO assembly positioning via silicon photonics and liquid cooling acquisitions.
- **Risk Mitigation**: Prudent guidance adjustments for EV, renewables, and 5G. Focus on high-margin AI and healthcare segments.

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