Jabil Inc. priced a total of $1.0 billion in senior notes on January 15 2026, issuing $500 million of 4.200% notes due 2029 and an additional $500 million of 4.750% notes due 2033. The coupon rates match current market levels, indicating favorable borrowing conditions for the company.
The proceeds will refinance maturing 2026 senior notes that carry a 1.700% coupon and provide liquidity for capital expenditures, share repurchases, and other strategic initiatives. The financing expands Jabil’s long‑term options while maintaining a low leverage stance, with a net debt to EBITDA ratio of 1.2× as of November 30 2025.
The issuance follows a strong Q1 FY2026 earnings report in which revenue rose 18.7% to $8.3 billion and GAAP diluted EPS climbed to $1.35, beating estimates by $0.45. Gross margin expanded to 8.9% and operating margin to 3.4%, driven by robust demand in the Intelligent Infrastructure segment, especially cloud and data‑center infrastructure.
Management highlighted that the Intelligent Infrastructure segment—encompassing cloud, data‑center infrastructure, networking, and capital equipment—was the primary growth engine, with revenue growth of 54% YoY. CEO Mike Dastoor praised the momentum, saying, “Fiscal 2026 is off to an excellent start, with Q1 performance ahead of expectations across revenue, core operating margins, and core EPS.” CFO Greg Hebard added, “Jabil beat Q1 guidance with $8.3 billion in revenue, $454 million core operating income and $2.85 core diluted EPS, driven by strength in Intelligent Infrastructure.”
The financing also supports Jabil’s recent acquisition of Hanley Energy Group for $751 million, which will enhance its data‑center energy‑management capabilities and contribute to FY2026 revenue. The company’s S&P Global rating of BBB‑ for the new notes reflects a stable credit profile.
Analysts noted that the new notes’ coupon rates align with market expectations, and the refinancing of the 2026 notes at a lower 1.7% rate is viewed as a prudent move to optimize the capital structure. The overall effect is to strengthen the balance sheet while preserving flexibility for future growth.
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