Jabil Inc. reported first‑quarter fiscal 2026 revenue of $8.305 billion, a 19% year‑over‑year increase from $6.99 billion in Q1 FY2025. Core diluted earnings per share rose to $2.85, up 42.5% from $2.00 in the prior year, and beat consensus estimates of $2.72 by $0.13 per share.
The revenue lift was driven by the Intelligent Infrastructure segment, which accounted for 46% of total sales and grew 54% YoY, fueled by demand for AI data‑center and cloud infrastructure. Regulated Industries contributed 37% of revenue and grew 4% YoY, providing steady support to the overall top line.
Core operating margin expanded to 5.7%, up from 5.3% in the prior quarter, reflecting a higher mix of high‑margin AI and healthcare contracts and disciplined cost management that offset modest raw‑material price increases. The margin improvement underscores the company’s successful shift toward technology‑heavy services.
Management raised its fiscal 2026 revenue outlook to $32.4 billion and core operating margin guidance to 5.7%, signaling confidence in sustained demand and continued margin expansion. Core EPS guidance was increased to $11.55, up from the previous $10.80, reflecting the company’s belief that the AI‑driven growth trajectory will persist.
Jabil reaffirmed its commitment to return 80% of free cash flow to shareholders, having generated $272 million in adjusted free cash flow in Q1 FY2026. The company also announced a $500 million investment in a new U.S. facility to support AI‑related manufacturing, expected to be operational by mid‑2026.
Pre‑market trading showed a 5–6% lift in Jabil’s stock, with analysts highlighting the earnings beat, robust margin expansion, and the raised full‑year outlook as key drivers of the positive market reaction.
CEO Mike Dastoor said, “Fiscal 2026 is off to an excellent start, with Q1 performance ahead of expectations across revenue, core operating margins, and core EPS. Our Intelligent Infrastructure segment remains a major growth engine, supported by accelerating demand across cloud, data‑center infrastructure, networking, and capital equipment.” He added that the company will continue to focus on profitable growth, margin expansion, and shareholder returns.
While the company noted ongoing macro uncertainties and supply‑chain disruptions, it emphasized that the strong demand for AI and cloud services provides a resilient tailwind, and it remains confident in its ability to navigate short‑term headwinds while capitalizing on long‑term growth opportunities.
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