Jabil Inc. reported preliminary, unaudited financial results for its first quarter of fiscal year 2025, exceeding both profit and revenue estimates. The company posted net revenue of $6.994 billion, which represents a 1% year-over-year increase when excluding the approximately $1.45 billion associated with the Mobility divestiture in the prior year quarter. Core operating income reached $347 million, resulting in a 5% core operating margin, and core diluted earnings per share was $2.00.
The strong performance was primarily driven by incremental strength in Jabil's Intelligent Infrastructure segment, particularly from AI-related cloud, data center infrastructure, and capital equipment markets. Despite continued weakness in renewable energy and electric vehicle markets within the Regulated Industries segment, Jabil generated robust cash flow, with $312 million from operations and $226 million in adjusted free cash flow for the quarter. The market reacted positively to the news, with Jabil's stock rising after the announcement.
Following these results, Jabil raised its fiscal year 2025 outlook, now anticipating approximately $27.3 billion in net revenue, a core operating margin of 5.4%, and core diluted earnings per share of $8.75. The company also reiterated its expectation for $1.2 billion in adjusted free cash flow for the year. For the second quarter of fiscal year 2025, Jabil provided guidance of $6.1 billion to $6.7 billion in net revenue and core diluted earnings per share between $1.60 and $2.00.
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