Core Insights - Jabil, Inc. (JBL) is leveraging its diverse product offerings to maintain a strong presence in various end markets, including AI data center infrastructure, capital equipment, warehouse automation, 5G wireless, cloud computing, renewable energy, and automotive [1] - The company is expanding its market reach through strategic collaborations, acquisitions, and organic growth, notably partnering with Axiado Corporation to develop AI-driven security systems for AMD Servers [2] - Jabil has introduced the J-422G server, designed for high efficiency in AI, machine learning, and high-performance computing, while also entering the renewable energy market focusing on inverters and battery modules [3][4] - The company reported revenues of $29.8 billion in fiscal 2025, an increase from $28.9 billion in 2024, with projections of $31.3 billion for fiscal 2026, driven by growth in AI data centers, healthcare, and advanced warehouse automation [5][9] Market Position and Performance - Jabil's stock has increased by 63.4% over the past year, compared to the Electronic-Manufacturing Services industry's growth of 129.6% [8] - The company's shares are currently trading at a price/earnings ratio of 18, which is lower than the industry average of 25.56 [10] - Earnings estimates for 2025 have remained stable over the past 60 days, indicating consistent performance expectations [11]

Core Insights - Jabil's (JBL.US) MSCI ESG rating has been downgraded from A to BBB as of October 20, 2025 [1] Summary by Category - **Company ESG Rating** - Jabil's ESG rating was adjusted from A to BBB by MSCI [1]

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Jabil provides global engineering, manufacturing, and supply chain solutions, reporting **$29.8 billion** net revenues and **$657 million** net income in FY2025 - Jabil is a leading global provider of engineering, manufacturing, and supply chain solutions, offering comprehensive design, production, and product management services across diverse industries[13](index=13&type=chunk) Fiscal Year 2025 Key Financials | Metric | Amount | | :--------------------------------- | :------------- | | Net Revenues (FY2025) | $29.8 billion | | Net Income Attributable to Jabil Inc. (FY2025) | $657 million | - The company's business is reported in three segments: Regulated Industries (automotive, healthcare, renewables), Intelligent Infrastructure (AI infrastructure, capital equipment, cloud/data center, networking), and Connected Living and Digital Commerce (digitalization, automation, warehouse automation, robotics)[16](index=16&type=chunk) - Key strategies include establishing and maintaining long-term customer relationships, product diversification towards higher-return segments, utilizing customer-centric business units, leveraging global production capabilities, expanding value-added services, delivering design expertise, and pursuing strategic acquisitions[20](index=20&type=chunk)[21](index=21&type=chunk) - R&D efforts focus on advanced manufacturing and testing technologies, including automation, next-generation electronic interconnections, advanced materials science, ceramic/metal/plastic injection molding, advanced coating solutions, thermal management, advanced sensor integration, optical sensors, co-packaged optics, silicon photonics, sterilization, device filling, fluid management, outsourced semiconductor assembly and test (OSAT), sustainable materials, and artificial intelligence/machine learning[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[35](index=35&type=chunk) Net Revenue Concentration by Customer | Customer | Percentage of Net Revenue (FY2025) | | :--------- | :--------------------------------- | | Customer A | 16 % | - As of **August 31, 2025**, Jabil had a global workforce of **135,000 employees** across approximately **100 locations** in **30 countries**[39](index=39&type=chunk) - Michael Dastoor was named Chief Executive Officer in May 2024, and Gregory B. Hebard was named Chief Financial Officer in May 2024[58](index=58&type=chunk)[59](index=59&type=chunk) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from customer dependence, supply chain disruptions, international operations, and regulatory compliance - The company's ability to schedule production and maximize efficiency is highly dependent on customer actions, with most customers not committing to firm production schedules for more than **one quarter**, leading to risks of order cancellations, quantity changes, or delays[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - A significant portion of net revenue depends on a limited number of customers; in fiscal year 2025, the **five largest customers** accounted for approximately **36% of net revenue**, making the company vulnerable to reductions in business from these key clients[74](index=74&type=chunk)[30](index=30&type=chunk) - Supply chain risks include component shortages (especially single-source components), increased prices due to inflation, and the potential inability to pass these costs to customers, which can impact gross profit margins[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Extensive international operations (majority of revenues) expose the company to risks such as geopolitical unrest (e.g., Russia/Ukraine conflict, Israel-Hamas war), tariffs and trade barriers (e.g., U.S. tariffs on Chinese goods), currency fluctuations, rising labor costs, and complex foreign laws and regulations[79](index=79&type=chunk)[93](index=93&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[138](index=138&type=chunk) - Cybersecurity threats, including security breaches, data losses, and outages, pose significant risks, potentially exacerbated by the increased use of AI technologies, leading to operational disruptions, litigation, and reputational harm[113](index=113&type=chunk) - Compliance with extensive government regulations and industry standards, including FDA's Quality System Regulation (QSR) for medical devices and environmental laws, is critical; non-compliance could lead to fines, production suspension, or reputational damage[114](index=114&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk) - Financial risks include exposure to financially troubled customers or suppliers, which can lead to difficulties in recovering amounts owed, increased inventory carrying costs, and adverse impacts on operating results and cash flows[129](index=129&type=chunk) - The company is subject to the risk of increased taxes due to changes in tax laws, interpretations by taxing authorities, or changes in the mix of earnings between jurisdictions, with the OECD's **15% global minimum corporate tax rate** potentially impacting future effective tax rates[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 1B. Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) Jabil Inc. reports no unresolved written comments from the SEC staff regarding its periodic or current reports - No unresolved written comments from the SEC staff regarding periodic or current reports[145](index=145&type=chunk) [Item 1C. Cybersecurity](index=28&type=section&id=Item%201C.%20Cybersecurity) Jabil's cybersecurity program, integrated into enterprise risk management, identifies and mitigates risks under Board oversight - Jabil's cybersecurity risk management program is integrated into its global enterprise risk management framework, focusing on identifying, monitoring, and mitigating key strategic risks, including data protection and cybersecurity[147](index=147&type=chunk) - Key components of the program include cybersecurity policies, risk assessments, industry-standard technical safeguards, regular employee training, engagement of third-party cybersecurity experts, and a Cybersecurity Incident Response Team (CIRT) for prevention, detection, mitigation, and remediation[147](index=147&type=chunk)[148](index=148&type=chunk) - The Board's Cybersecurity Committee oversees the company's cybersecurity programs and risks, receiving **quarterly reports** from the Chief Information Security Officer (CISO)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - The CISO, with over **39 years of experience** and industry certifications, leads the Corporate Information Security organization, while a new CISO with over 20 years of experience transitioned into the role effective September 1, 2025[152](index=152&type=chunk)[154](index=154&type=chunk) [Item 2. Properties](index=30&type=section&id=Item%202.%20Properties) Jabil owns or leases approximately **35 million square feet** of global facilities, primarily in Asia, Americas, and Europe, deemed adequate for operations - Jabil owns or leases facilities globally, primarily in Asia, Americas, and Europe, which are considered in good condition and adequate for business operations[155](index=155&type=chunk) Approximate Square Footage of Facilities (as of August 31, 2025) | Region | Approximate Square Footage (in millions) | | :--------- | :--------------------------------------- | | Asia | 17 | | Americas | 13 | | Europe | 5 | | **Total** | **35** | - Approximately **10%** of the total square footage is not currently used in business operations. The total includes **14 million square feet** in owned facilities and **21 million square feet** in leased facilities[156](index=156&type=chunk) [Item 3. Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 19 – 'Commitments and Contingencies' to the Consolidated Financial Statements - Legal proceedings information is incorporated by reference from Note 19 – 'Commitments and Contingencies' to the Consolidated Financial Statements[157](index=157&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Jabil Inc - This item is not applicable[158](index=158&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Jabil's common stock trades on the NYSE, with **956 holders** as of October 10, 2025, and the company repurchased **103,031 shares** in Q4 FY2025 - Jabil's common stock trades on the New York Stock Exchange under the symbol "JBL". As of **October 10, 2025**, there were **956 holders of record**[159](index=159&type=chunk)[161](index=161&type=chunk) - The company expects to continue declaring and paying **quarterly dividends** in amounts similar to past declarations, subject to Board review of financial performance and global economic conditions[160](index=160&type=chunk) Cumulative Total Stockholder Return (5-Year Period Ending August 31, 2025) | August 31 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | :---------- | :--- | :--- | :--- | :--- | :--- | :--- | | Jabil Inc. | $100 | $182 | $179 | $340 | $326 | $612 | | S&P 500 Index | $100 | $131 | $116 | $135 | $172 | $199 | | Peer Group | $100 | $157 | $150 | $164 | $280 | $396 | Issuer Purchases of Equity Securities (Three Months Ended August 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | | :--------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------- | | June 1, 2025 – June 30, 2025 | — | — | — | | July 1, 2025 – July 31, 2025 | 10,018 | $225.14 | 4,050 | | August 1, 2025 – August 31, 2025 | 93,013 | $219.10 | 93,013 | | **Total** | **103,031** | **$219.69** | **97,063** | - In **July 2025**, the Board authorized a new **$1.0 billion** share repurchase program (2026 Share Repurchase Program), with **$865 million** remaining available as of **October 10, 2025**[167](index=167&type=chunk)[271](index=271&type=chunk) - A warrant was issued to Amazon.com NV Investment Holdings LLC on **December 27, 2024**, to acquire up to **1,158,539 ordinary shares** at an initial exercise price of **$137.7671 per share**, vesting over a seven-year term[167](index=167&type=chunk)[275](index=275&type=chunk) [Item 6. [Reserved]](index=32&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no content - This item is reserved and contains no content[168](index=168&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Jabil's financial performance, highlighting a **3.2% increase** in net revenue to **$29.8 billion** in FY2025, with decreased operating income and strong liquidity - Jabil provides comprehensive electronics design, production, and product management services, with revenue primarily derived from manufacturing services[169](index=169&type=chunk) Summary of Key Operating Results (in millions, except per share data) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Net revenue | $29,802 | $28,883 | $34,702 | | Gross profit | $2,646 | $2,676 | $2,867 | | Operating income | $1,182 | $2,013 | $1,537 | | Net income attributable to Jabil Inc. | $657 | $1,388 | $818 | | Earnings per share – diluted | $5.92 | $11.17 | $6.02 | Key Financial Performance Indicators (Three Months Ended) | Indicator | August 31, 2025 | May 31, 2025 | August 31, 2024 | | :------------------------ | :-------------- | :----------- | :-------------- | | Sales cycle | 18 days | 24 days | 34 days | | Inventory turns (annualized) | 5 turns | 5 turns | 5 turns | | Days in accounts receivable | 44 days | 46 days | 46 days | | Days in inventory | 69 days | 74 days | 76 days | | Days in accounts payable | 96 days | 96 days | 88 days | - Net revenue increased by **3.2%** in FY2025 compared to FY2024, primarily driven by a **34% increase** in the Intelligent Infrastructure segment, offset by a **25% decrease** in the Connected Living and Digital Commerce segment due to the divestiture of the Mobility Business[193](index=193&type=chunk)[194](index=194&type=chunk) - Gross profit as a percentage of net revenue decreased to **8.9%** in FY2025 from **9.3%** in FY2024, mainly due to product mix changes in the Connected Living and Digital Commerce and Intelligent Infrastructure segments[197](index=197&type=chunk) Restructuring, Severance, and Related Charges (in millions) | Category | FY2025 | FY2024 | FY2023 | | :------------------------------------- | :----- | :----- | :----- | | Restructuring, severance and related charges | $181 | $296 | $57 | - In FY2025, the company recognized a pre-tax loss of **$53 million** from divestitures, primarily due to the sale of Italian operations, partially offset by post-closing adjustments from the Mobility Business divestiture. This contrasts with a **$942 million** pre-tax gain in FY2024 from the Mobility Business divestiture[210](index=210&type=chunk)[211](index=211&type=chunk) Adjusted Free Cash Flow (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $1,640 | $1,716 | $1,734 | | Acquisition of PP&E | $(468) | $(784) | $(1,030) | | Proceeds and advances from sale of PP&E | $146 | $123 | $322 | | **Adjusted free cash flow** | **$1,318**| **$1,055**| **$1,026**| - In FY2025, Jabil acquired Pharmaceutics International, Inc. for **$309 million** (enhancing Regulated Industries) and Mikros Technologies LLC for **$63 million** (for liquid cooling solutions in Intelligent Infrastructure)[239](index=239&type=chunk)[241](index=241&type=chunk) - As of **August 31, 2025**, Jabil had approximately **$1.9 billion** in cash and cash equivalents, with a significant portion held by foreign subsidiaries, most of which could be repatriated without potential tax expense[251](index=251&type=chunk) Total Notes Payable and Long-Term Debt (in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2025 | $2,885 | | 2024 | $2,880 | Dividends Paid and Share Repurchases (in millions) | Fiscal Year | Dividends Paid | Share Repurchases | | :------------ | :------------- | :---------------- | | 2025 | $36 | $1,000 | | 2024 | $42 | $2,500 | | 2023 | $45 | $487 | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Jabil manages market risks from foreign currency and interest rate fluctuations using derivative instruments, with hypothetical changes not materially affecting financials - Jabil is subject to foreign currency exchange rate fluctuations and uses forward foreign exchange contracts to economically hedge transactional exposure from commitments in non-U.S. dollar currencies, primarily Chinese yuan renminbi, Euro, Indian Rupee, Malaysian Ringgit, and Mexican peso[280](index=280&type=chunk)[281](index=281&type=chunk) - The company is exposed to interest rate risk primarily on intra-quarter variable rate borrowings under its Credit Facility and commercial paper program[284](index=284&type=chunk) - Jabil periodically enters into interest rate swaps to manage interest rate risk, with **$100 million** in aggregate notional amount of forward interest rate swaps scheduled to expire on **July 31, 2026**, as of **August 31, 2025**[286](index=286&type=chunk) - A hypothetical **10% change** in foreign currency exchange rates or a **100-basis-point change** in interest rates would not have a material effect on the consolidated financial statements[282](index=282&type=chunk)[285](index=285&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item incorporates financial statements and supplementary data by reference from Item 7 and Item 15 of this report - Information required by this item is included in Item 7 under "Quarterly Results" and incorporated by reference from Item 15 of Part IV[287](index=287&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=51&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Jabil Inc. reports no changes in or disagreements with its accountants on accounting and financial disclosure - There have been no changes in or disagreements with Jabil's accountants on accounting and financial disclosure[288](index=288&type=chunk) [Item 9A. Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Jabil's CEO and CFO concluded disclosure controls and internal control over financial reporting were effective as of August 31, 2025, affirmed by auditors - The CEO and CFO concluded that Jabil's disclosure controls and procedures were effective as of **August 31, 2025**[289](index=289&type=chunk) - Management assessed and concluded that the company maintained effective internal control over financial reporting as of **August 31, 2025**, a conclusion supported by an audit report from Ernst & Young LLP[290](index=290&type=chunk)[319](index=319&type=chunk) - No modifications to internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control over financial reporting were identified for the fiscal quarter ended **August 31, 2025**[294](index=294&type=chunk) [Item 9B. Other Information](index=52&type=section&id=Item%209B.%20Other%20Information) This section details Rule 10b5-1 trading plans adopted, modified, or terminated by executive officers during the three months ended August 31, 2025 - Michael Dastoor, CEO, entered into a Rule 10b5-1 plan on **June 27, 2025**, for the sale of up to **54,381 shares**, terminated it on **July 7, 2025**, and entered a new plan on **July 8, 2025**, for the same number of shares[295](index=295&type=chunk) - Gregory Hebard, CFO, entered into a Rule 10b5-1 trading plan on **June 26, 2025**, for the sale of up to **8,944 shares**[296](index=296&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=53&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on executive officers is in Item 1 of Part I; other details on directors, corporate governance, and audit committee matters are incorporated by reference from the Proxy Statement - Information on executive officers is in Item 1 of Part I; other details on directors, corporate governance, and audit committee matters are incorporated by reference from the Proxy Statement[298](index=298&type=chunk) [Item 11. Executive Compensation](index=53&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation, director compensation, and Compensation Committee details is incorporated by reference from Jabil's Proxy Statement - Information on executive compensation, director compensation, and Compensation Committee interlocks and insider participation is incorporated by reference from the Proxy Statement[299](index=299&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=53&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership by principal stockholders and management, and equity compensation plan details, is incorporated by reference from the Proxy Statement - Information on security ownership by principal stockholders and management, and equity compensation plan information, is incorporated by reference from the Proxy Statement[300](index=300&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=53&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships and related transactions, and director independence, is incorporated by reference from Jabil's Proxy Statement - Information on certain relationships and related transactions, and director independence determinations, is incorporated by reference from the Proxy Statement[301](index=301&type=chunk) [Item 14. Principal Accounting Fees and Services](index=53&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services, including the Audit Committee's pre-approval policy, is incorporated by reference from Jabil's Proxy Statement - Information on principal accounting fees and services, and the Audit Committee's policy on pre-approval, is incorporated by reference from the Proxy Statement[302](index=302&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=54&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This item lists consolidated financial statements, schedules, and various exhibits, including auditor reports and corporate documents - The report includes consolidated financial statements and related notes, along with a financial statement schedule[303](index=303&type=chunk)[307](index=307&type=chunk) - A comprehensive exhibit list is provided, detailing corporate documents, debt instruments, equity incentive plans, and other agreements incorporated by reference or filed herewith[306](index=306&type=chunk)[308](index=308&type=chunk)[310](index=310&type=chunk) [Index to Consolidated Financial Statements and Schedule](index=57&type=section&id=Index%20to%20Consolidated%20Financial%20Statements%20and%20Schedule) This section indexes consolidated financial statements and schedules, including Management's Report on Internal Control, auditor reports, and various financial statements - The index lists Management's Report on Internal Control over Financial Reporting, Reports of Independent Registered Public Accounting Firm, and the Consolidated Financial Statements (Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, Cash Flows, and Notes)[313](index=313&type=chunk) - Schedule II – Valuation and Qualifying Accounts is also included in the index[313](index=313&type=chunk) [Management's Report on Internal Control over Financial Reporting](index=58&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20over%20Financial%20Reporting) Jabil's management, under CEO and CFO supervision, assessed and concluded internal control over financial reporting was effective as of August 31, 2025, affirmed by Ernst & Young LLP - Management is responsible for establishing and maintaining adequate internal control over financial reporting[316](index=316&type=chunk) - Based on an assessment using the COSO framework, management concluded that Jabil maintained effective internal control over financial reporting as of **August 31, 2025**[318](index=318&type=chunk)[319](index=319&type=chunk) - Ernst & Young LLP, the independent registered public accounting firm, issued an unqualified audit report on the effectiveness of the company's internal control over financial reporting[319](index=319&type=chunk) [Report of Independent Registered Public Accounting Firm (Internal Control)](index=59&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(Internal%20Control)) Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s effective internal control over financial reporting as of August 31, 2025, based on COSO criteria - Ernst & Young LLP expressed an unqualified opinion that Jabil Inc. maintained effective internal control over financial reporting as of **August 31, 2025**, based on the COSO criteria[323](index=323&type=chunk) - The audit was conducted in accordance with PCAOB standards, aiming to obtain reasonable assurance about the maintenance of effective internal control over financial reporting[326](index=326&type=chunk)[327](index=327&type=chunk) [Report of Independent Registered Public Accounting Firm (Financial Statements)](index=60&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(Financial%20Statements)) Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s consolidated financial statements for the three years ended August 31, 2025, identifying uncertain tax positions as a critical audit matter - Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s consolidated financial statements for the three years ended **August 31, 2025**, stating they are presented fairly in all material respects in conformity with U.S. GAAP[333](index=333&type=chunk) - The critical audit matter identified was 'Uncertain Tax Positions,' specifically regarding the application of transfer pricing rules to intercompany transactions, due to the judgmental nature of recognition and measurement based on interpretations of tax laws[337](index=337&type=chunk)[339](index=339&type=chunk) - The audit addressed this matter by testing internal controls, assessing technical merits with tax professionals, evaluating assumptions, and testing calculation accuracy[339](index=339&type=chunk) [Consolidated Financial Statements](index=62&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=62&type=section&id=Consolidated%20Balance%20Sheets) Presents Jabil Inc.'s financial position, including assets, liabilities, and equity, as of August 31, 2025, and 2024 Consolidated Balance Sheets (in millions) | ASSETS | August 31, 2025 | August 31, 2024 | | :----------------------------------------- | :-------------- | :-------------- | | Cash and cash equivalents | $1,933 | $2,201 | | Accounts receivable, net | $4,039 | $3,533 | | Inventories, net | $4,681 | $4,276 | | Total current assets | $13,720 | $12,791 | | Property, plant and equipment, net | $2,847 | $3,024 | | Goodwill | $841 | $661 | | Total assets | $18,543 | $17,351 | | LIABILITIES AND EQUITY | | | | Accounts payable | $7,937 | $6,190 | | Accrued expenses | $5,185 | $5,499 | | Total current liabilities | $13,714 | $11,782 | | Notes payable and long-term debt, less current installments | $2,386 | $2,880 | | Total liabilities | $17,026 | $15,614 | | Total Jabil Inc. stockholders' equity | $1,513 | $1,737 | | Total equity | $1,517 | $1,737 | [Consolidated Statements of Operations](index=63&type=section&id=Consolidated%20Statements%20of%20Operations) Presents Jabil Inc.'s financial performance, including revenues, expenses, and net income, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Operations (in millions, except per share data) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Net revenue | $29,802 | $28,883 | $34,702 | | Cost of revenue | $27,156 | $26,207 | $31,835 | | Gross profit | $2,646 | $2,676 | $2,867 | | Operating income | $1,182 | $2,013 | $1,537 | | Income before income tax | $892 | $1,751 | $1,262 | | Income tax expense | $235 | $363 | $444 | | Net income attributable to Jabil Inc. | $657 | $1,388 | $818 | | Earnings per share – diluted | $5.92 | $11.17 | $6.02 | [Consolidated Statements of Comprehensive Income](index=64&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents Jabil Inc.'s comprehensive income, including net income and other comprehensive income components, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Comprehensive Income (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :----- | :----- | :----- | | Net income | $657 | $1,388 | $818 | | Change in foreign currency translation | $16 | $(5) | $25 | | Change in derivative instruments | $19 | $(2) | $17 | | Actuarial loss | $(11) | $(17) | $(19) | | Prior service credit (cost) | $5 | $(5) | $2 | | Total other comprehensive income (loss) | $29 | $(29) | $25 | | Comprehensive income | $686 | $1,359 | $843 | [Consolidated Statements of Stockholders' Equity](index=65&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Presents changes in Jabil Inc.'s stockholders' equity, including retained earnings and treasury stock, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Stockholders' Equity (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Total stockholders' equity, beginning balances | $1,737 | $2,867 | $2,452 | | Additional paid-in capital, ending balances | $3,047 | $2,841 | $2,795 | | Retained earnings, ending balances | $6,382 | $5,760 | $4,412 | | Accumulated other comprehensive loss, ending balances | $(17) | $(46) | $(17) | | Treasury stock, ending balances | $(7,899) | $(6,818) | $(4,324) | | Total stockholders' equity, ending balances | $1,517 | $1,737 | $2,867 | [Consolidated Statements of Cash Flows](index=66&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Presents Jabil Inc.'s cash flows from operating, investing, and financing activities for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Cash Flows (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $1,640 | $1,716 | $1,734 | | Net cash (used in) provided by investing activities | $(714) | $1,351 | $(723) | | Net cash used in financing activities | $(1,204) | $(2,668) | $(680) | | Net (decrease) increase in cash and cash equivalents | $(268) | $397 | $326 | | Cash and cash equivalents at end of period | $1,933 | $2,201 | $1,804 | [Notes to Consolidated Financial Statements](index=67&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Description of Business and Summary of Significant Accounting Policies](index=67&type=section&id=Note%201.%20Description%20of%20Business%20and%20Summary%20of%20Significant%20Accounting%20Policies) Describes Jabil Inc.'s business, including its services and revenue sources, and outlines significant accounting policies, estimates, and asset classification criteria - Jabil Inc. provides comprehensive electronics design, production, and product management services, primarily deriving revenue from manufacturing services[357](index=357&type=chunk)[384](index=384&type=chunk) - The consolidated financial statements include Jabil and its wholly-owned and majority-owned subsidiaries, with all significant intercompany balances eliminated[358](index=358&type=chunk) - Management makes estimates and assumptions in preparing financial statements, which affect reported amounts of assets, liabilities, revenues, and expenses[359](index=359&type=chunk) - Assets and liabilities are classified as held for sale when specific criteria are met, including management commitment to a sale plan and probable transfer within **one year**[360](index=360&type=chunk) - Revenue is generally recognized over time for manufactured products with no alternative use and an enforceable right to payment for work completed, based on costs incurred to date[386](index=386&type=chunk)[389](index=389&type=chunk) - Stock-based compensation expense is recognized on a straight-line basis over the vesting period, with fair value measured at grant date for time-based and performance-based awards, and using a Monte Carlo model for market-based awards[394](index=394&type=chunk)[395](index=395&type=chunk)[396](index=396&type=chunk) - Deferred tax assets and liabilities are recognized for future tax consequences of temporary differences, with a valuation allowance established for assets not deemed more likely than not to be realized[400](index=400&type=chunk) [Note 2. Trade Accounts Receivable Sale Programs](index=72&type=section&id=Note%202.%20Trade%20Accounts%20Receivable%20Sale%20Programs) Details Jabil's programs for selling trade accounts receivable to financial institutions without recourse, including outstanding balances and pre-tax losses on sales - Jabil regularly sells designated pools of high credit quality trade accounts receivable to unaffiliated financial institutions without recourse under uncommitted sale programs[405](index=405&type=chunk) - The outstanding balance of receivables sold and not yet collected was approximately **$927 million** as of **August 31, 2025**, compared to **$367 million** as of **August 31, 2024**[406](index=406&type=chunk) Trade Accounts Receivable Sale Programs Financials (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------- | :-------- | :-------- | :-------- | | Trade accounts receivable sold | $11,358 | $8,214 | $10,784 | | Cash proceeds received | $11,300 | $8,170 | $10,748 | | Pre-tax losses on sale of receivables | $58 | $44 | $36 | [Note 3. Inventories](index=73&type=section&id=Note%203.%20Inventories) Provides a detailed breakdown of Jabil's inventory composition, including raw materials, work in process, finished goods, and reserves for excess and obsolete inventory Inventories Composition (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Raw materials | $3,905 | $3,903 | | Work in process | $335 | $190 | | Finished goods | $508 | $246 | | Reserve for excess and obsolete inventory | $(67) | $(63) | | **Inventories, net** | **$4,681** | **$4,276** | [Note 4. Property, Plant and Equipment](index=74&type=section&id=Note%204.%20Property%2C%20Plant%20and%20Equipment) Details Jabil's property, plant, and equipment, including land, buildings, machinery, and construction in progress, along with accumulated depreciation and related expenses Property, Plant and Equipment (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Land and improvements | $95 | $108 | | Buildings | $1,486 | $1,451 | | Machinery and equipment | $4,122 | $4,125 | | Construction in progress | $356 | $346 | | Property, plant and equipment | $7,817 | $7,760 | | Less accumulated depreciation and amortization | $4,970 | $4,736 | | **Property, plant and equipment, net** | **$2,847** | **$3,024** | Depreciation and Maintenance Expenses (in millions) | Expense | FY2025 | FY2024 | FY2023 | | :----------------------- | :----- | :----- | :----- | | Depreciation expense | $612 | $656 | $891 | | Maintenance and repair expense | $271 | $335 | $431 | [Note 5. Leases](index=74&type=section&id=Note%205.%20Leases) Provides details on Jabil's operating and finance lease assets and liabilities, net lease costs, weighted-average lease terms, discount rates, and maturity analysis of lease liabilities Lease Assets and Liabilities (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------ | :-------------- | :-------------- | | Operating lease right-of-use assets | $462 | $360 | | Finance lease assets | $391 | $378 | | Current operating lease liabilities | $93 | $93 | | Current finance lease liabilities | $199 | $119 | | Non-current operating lease liabilities | $388 | $284 | | Non-current finance lease liabilities | $166 | $235 | Net Lease Cost (in millions) | Metric | FY2025 | FY2024 | | :--------------- | :----- | :----- | | Operating lease cost | $119 | $118 | | Finance lease cost | | | | Amortization of leased assets | $42 | $50 | | Interest on lease liabilities | $11 | $10 | | **Net lease cost** | **$172** | **$178** | Weighted-Average Lease Terms and Discount Rates | Lease Type | August 31, 2025 (Remaining Lease Term) | August 31, 2025 (Discount Rate) | August 31, 2024 (Remaining Lease Term) | August 31, 2024 (Discount Rate) | | :-------------- | :------------------------------------- | :------------------------------ | :------------------------------------- | :------------------------------ | | Operating leases | 7.7 years | 4.39 % | 5.7 years | 3.80 % | | Finance leases | 6.5 years | 3.57 % | 5.2 years | 4.23 % | Maturity Analysis of Lease Liabilities (as of August 31, 2025, in millions) | Fiscal Year Ended August 31, | Operating Leases | Finance Leases | Total | | :--------------------------- | :--------------- | :------------- | :---- | | 2026 | $112 | $208 | $320 | | 2027 | $91 | $43 | $134 | | 2028 | $74 | $22 | $96 | | 2029 | $67 | $16 | $83 | | 2030 | $51 | $14 | $65 | | Thereafter | $199 | $119 | $318 | | **Total lease payments** | **$594** | **$422** | **$1,016** | [Note 6. Goodwill and Other Intangible Assets](index=76&type=section&id=Note%206.%20Goodwill%20and%20Other%20Intangible%20Assets) Discusses Jabil's goodwill and intangible assets, including segment reorganization, impairment testing, and estimated future amortization expense - Jabil reorganized its internal structure on **September 1, 2024**, resulting in three new operating segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce. Goodwill was tested for impairment before and after the reorganization, with no impairment found[413](index=413&type=chunk)[414](index=414&type=chunk) - The annual goodwill impairment analysis for FY2025 determined that the fair values of the reporting units exceeded their carrying values, indicating no impairment[415](index=415&type=chunk) Goodwill by Reportable Segment (in millions) | Segment | August 31, 2025 | August 31, 2024 | | :----------------------------- | :-------------- | :-------------- | | Regulated Industries | $673 | $490 | | Intelligent Infrastructure | $76 | $69 | | Connected Living and Digital Commerce | $92 | $102 | | **Total** | **$841** | **$661** | Intangible Assets (in millions) | Category | August 31, 2025 (Net Carrying Amount) | August 31, 2024 (Net Carrying Amount) | | :------------------------------------- | :------------------------------------ | :------------------------------------ | | Contractual agreements and customer relationships | $202 | $91 | | Intellectual property | $58 | $17 | | Finite-lived trade names | $13 | $35 | | **Total intangible assets** | **$273** | **$143** | Estimated Future Amortization Expense (in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2026 | $50 | | 2027 | $41 | | 2028 | $37 | | 2029 | $30 | | 2030 | $28 | | Thereafter | $87 | | **Total** | **$273** | [Note 7. Notes Payable and Long-Term Debt](index=77&type=section&id=Note%207.%20Notes%20Payable%20and%20Long-Term%20Debt) Outlines Jabil's notes payable and long-term debt, including senior notes, credit facilities, debt maturities, and compliance with debt covenants Notes Payable and Long-Term Debt Outstanding (in millions) | Note Type | Maturity Date | August 31, 2025 | August 31, 2024 | | :------------------ | :------------ | :-------------- | :-------------- | | 3.950% Senior Notes | Jan 12, 2028 | $499 | $498 | | 3.600% Senior Notes | Jan 15, 2030 | $498 | $497 | | 3.000% Senior Notes | Jan 15, 2031 | $595 | $594 | | 1.700% Senior Notes | Apr 15, 2026 | $499 | $499 | | 4.250% Senior Notes | May 15, 2027 | $497 | $496 | | 5.450% Senior Notes | Feb 1, 2029 | $297 | $296 | | **Total** | | **$2,885** | **$2,880** | - On **June 18, 2025**, Jabil entered into a new five-year revolving credit facility of **$3.2 billion**, which may be increased by up to **$1.0 billion**, expiring on **June 18, 2030**[419](index=419&type=chunk) - As of **August 31, 2025**, Jabil had **$4.0 billion** in available unused borrowing capacity under its existing revolving credit facilities, including **$3.2 billion** under the new Revolving Credit Facility[421](index=421&type=chunk) Debt Maturities (as of August 31, 2025, in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2026 | $499 | | 2027 | $497 | | 2028 | $499 | | 2029 | $297 | | 2030 | $498 | | Thereafter | $595 | | **Total** | **$2,885** | - Jabil was in compliance with all debt covenants as of **August 31, 2025**, and **2024**[423](index=423&type=chunk) [Note 8. Asset-Backed Securitization Program](index=78&type=section&id=Note%208.%20Asset-Backed%20Securitization%20Program) Describes Jabil's asset-backed securitization program for selling trade accounts receivable, including program amendments, financial metrics, and covenant compliance - Jabil continuously sells designated pools of trade accounts receivable to a special purpose entity, which then sells them at a discount to unaffiliated financial institutions without recourse[425](index=425&type=chunk) - The terms of the global asset-backed securitization program were amended on **January 23, 2025**, extending the termination date from January 2025 to **January 2028**, with a maximum available net cash proceeds of **$700 million**[429](index=429&type=chunk) Asset-Backed Securitization Program Financials (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------- | :-------- | :-------- | :-------- | | Trade accounts receivable sold | $4,152 | $4,000 | $4,101 | | Cash proceeds received | $4,111 | $3,953 | $4,061 | | Pre-tax losses on sale of receivables | $41 | $47 | $40 | - Jabil was in compliance with all covenants under the global asset-backed securitization program as of **August 31, 2025**, **2024**, and **2023**[431](index=431&type=chunk) [Note 9. Accrued Expenses](index=79&type=section&id=Note%209.%20Accrued%20Expenses) Provides a breakdown of Jabil's accrued expenses, including inventory deposits, contract liabilities, and accrued compensation and employee benefits Accrued Expenses Composition (in millions) | Category | August 31, 2025 | August 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Inventory deposits | $1,205 | $1,582 | | Contract liabilities | $1,016 | $1,017 | | Accrued compensation and employee benefits | $756 | $699 | | Other accrued expenses | $2,208 | $2,201 | | **Accrued expenses** | **$5,185** | **$5,499** | [Note 10. Postretirement and Other Employee Benefits](index=79&type=section&id=Note%2010.%20Postretirement%20and%20Other%20Employee%20Benefits) Details Jabil's defined benefit pension plans and other employee benefits, including benefit obligations, plan assets, net periodic benefit costs, investment policies, and expected contributions - Jabil maintains qualified defined benefit pension plans for employees in the UK and Switzerland, and other plans from acquired operations in Europe, Asia, and Mexico[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk) Benefit Obligation and Plan Assets (in millions) | Metric | August 31, 2025 | August 31, 2024 | | :----------------------------------- | :-------------- | :-------------- | | Ending Projected Benefit Obligation (PBO) | $537 | $513 | | Ending Fair Value of Plan Assets | $548 | $524 | | Funded status | $11 | $11 | Net Periodic Benefit Cost (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------- | :----- | :----- | :----- | | Service cost | $23 | $21 | $18 | | Interest cost | $11 | $12 | $12 | | Expected long-term return on plan assets | $(18) | $(17) | $(17) | | **Net periodic benefit cost** | **$13** | **$11** | **$3** | - The investment policy for plan assets aims to generate income and capital growth to meet future benefits, limit risk, and minimize long-term costs through diversification across equity and debt securities[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk) Fair Value of Plan Assets by Category (as of August 31, 2025, in millions) | Asset Category | Fair Value (in millions) | Asset Allocation (%) | | :---------------------- | :----------------------- | :------------------- | | Cash and cash equivalents | $16 | 3 % | | Global equity securities | $249 | 46 % | | Corporate bonds | $232 | 42 % | | Government bonds | $40 | 7 % | | Insurance contracts | $11 | 2 % | | **Total** | **$548** | **100 %** | - Jabil expects to contribute between **$26 million** and **$32 million** to its funded pension plans in fiscal year 2026[445](index=445&type=chunk) - The company contributed approximately **$80 million**, **$78 million**, and **$74 million** to defined contribution plans for domestic and international employees in fiscal years 2025, 2024, and 2023, respectively[447](index=447&type=chunk) [Note 11. Derivative Financial Instruments and Hedging Activities](index=83&type=section&id=Note%2011.%20Derivative%20Financial%20Instruments%20and%20Hedging%20Activities) Explains Jabil's use of derivative instruments, primarily forward foreign exchange contracts and interest rate swaps, to manage foreign currency and interest rate risks, including notional amounts and hedging strategies - Jabil uses derivative instruments, primarily forward foreign exchange contracts, to manage foreign currency risk associated with anticipated revenues and expenses, designating them as cash flow hedges or net investment hedges[448](index=448&type=chunk)[450](index=450&type=chunk)[451](index=451&type=chunk)[452](index=452&type=chunk) - The aggregate notional amount of outstanding cash flow hedges was **$433 million** as of **August 31, 2025**, and **$353 million** as of **August 31, 2024**[451](index=451&type=chunk) Net Investment Hedges Notional Amounts (in millions) | Maturity date | August 31, 2025 | August 31, 2024 | | :------------ | :-------------- | :-------------- | | October 2024 | $— | $140 | | January 2025 | $— | $106 | | July 2025 | $— | $55 | | October 2025 | $103 | $— | | January 2026 | $200 | $106 | | April 2026 | $42 | $— | | July 2026 | $45 | $— | | **Total** | **$390** | **$407** | - Non-designated forward foreign exchange contracts, used to economically hedge transactional exposure, had an aggregate notional amount of **$3.2 billion** as of **August 31, 2025**, compared to **$2.6 billion** as of **August 31, 2024**[454](index=454&type=chunk) - Jabil periodically enters into interest rate swaps to manage interest rate risk, with **$100 million** in aggregate notional amount of forward interest rate swaps outstanding as of **August 31, 2025**, scheduled to expire on **July 31, 2026**[458](index=458&type=chunk)[459](index=459&type=chunk) [Note 12. Accumulated Other Comprehensive Income](index=85&type=section&id=Note%2012.%20Accumulated%20Other%20Comprehensive%20Income) Details changes in Jabil's accumulated other comprehensive income (AOCI) by component, including foreign currency translation, derivative instruments, and actuarial gains/losses Changes in Accumulated Other Comprehensive Income (AOCI) by Component (in millions) | Component | Balance as of August 31, 2024 | Other comprehensive income (loss) | Amounts reclassified from AOCI | Balance as of August 31, 2025 | | :------------------------- | :---------------------------- | :-------------------------------- | :----------------------------- | :---------------------------- | | Foreign Currency Translation Adjustment | $(44) | $34 | $— | $(10) | | Net Investment Hedges | $(24) | $(18) | $— | $(42) | | Derivative Instruments | $12 | $19 | $5 | $31 | | Actuarial Gain (Loss) | $29 | $(11) | $(7) | $18 | | Prior Service (Cost) Credit | $(19) | $5 | $5 | $(14) | | **Total** | **$(46)** | **$29** | **$3** | **$(17)** | - Total other comprehensive income (loss) for FY2025 was **$29 million**, a positive change from **$(29) million** in FY2024[348](index=348&type=chunk)[462](index=462&type=chunk) [Note 13. Stockholders' Equity](index=86&type=section&id=Note%2013.%20Stockholders%27%20Equity) Provides information on Jabil's stockholders' equity, including stock-based compensation, equity incentive plans, dividends, common stock outstanding, share repurchases, and warrants Stock-Based Compensation Expense (in millions) | Category | FY2025 | FY2024 | FY2023 | | :---------------------------- | :----- | :----- | :----- | | Restricted stock units | $89 | $70 | $81 | | Employee stock purchase plan | $18 | $19 | $14 | | **Total** | **$107** | **$89** | **$95** | - The 2021 Equity Incentive Plan has **7,135,170 shares** available for grant as of **August 31, 2025**[465](index=465&type=chunk)[466](index=466&type=chunk) - Jabil declared **quarterly cash dividends** of **$0.08 per share** throughout fiscal year 2025, totaling **$35 million**[472](index=472&type=chunk) Common Stock Outstanding (Shares) | Fiscal Year Ended August 31, | Outstanding Shares | | :--------------------------- | :----------------- | | 2025 | 107,480,895 | | 2024 | 113,744,167 | | 2023 | 131,294,422 | - The **$1.0 billion** 2025 Share Repurchase Program, authorizing $1.0 billion, was fully utilized in FY2025, repurchasing **6.6 million shares**[474](index=474&type=chunk) - A warrant was issued to Amazon.com NV Investment Holdings LLC on **December 27, 2024**, to acquire up to **1,158,539 ordinary shares**, with **59,582 shares** vested upon issuance[478](index=478&type=chunk)[480](index=480&type=chunk) [Note 14. Concentration of Risk and Segment Data](index=89&type=section&id=Note%2014.%20Concentration%20of%20Risk%20and%20Segment%20Data) Analyzes Jabil's concentration of risk from major customers and provides detailed net revenue and income margin data by segment and geography - In fiscal year 2025, Jabil's **five largest customers** accounted for approximately **36% of its net revenue**, and **87 customers** accounted for approximately **90% of net revenue**[483](index=483&type=chunk) Net Revenue by Segment (in millions) | Segment | FY2025 | FY2024 | FY2023 | | :----------------------------- | :-------- | :-------- | :-------- | | Regulated Industries | $11,879 | $12,261 | $13,039 | | Intelligent Infrastructure | $12,317 | $9,197 | $11,072 | | Connected Living and Digital Commerce | $5,606 | $7,425 | $10,591 | | **Total Net Revenue** | **$29,802** | **$28,883** | **$34,702** | Segment Income Margin | Segment | FY2025 (%) | FY2024 (%) | FY2023 (%) | | :----------------------------- | :--------- | :--------- | :--------- | | Regulated Industries | 5.4 % | 5.3 % | 5.0 % | | Intelligent Infrastructure | 5.4 % | 5.1 % | 5.0 % | | Connected Living and Digital Commerce | 5.6 % | 6.2 % | 5.0 % | | **Total Segment Income Margin** | **5.4 %** | **5.5 %** | **5.0 %** | Net Revenue by Geography (in millions) | Country | FY2025 Net Revenue | FY2024 Net Revenue | FY2023 Net Revenue | | :-------- | :----------------- | :----------------- | :----------------- | | Mexico | $5,689 | $5,872 | $6,083 | | China | $4,196 | $4,810 | $5,868 | | Malaysia | $3,644 | * | * | | Singapore | * | $4,486 | $7,385 | | U.S. | $7,444 | $5,047 | $4,935 | [Note 15. Restructuring, Severance and Related Charges](index=92&type=section&id=Note%2015.%20Restructuring%2C%20Severance%20and%20Related%20Charges) Summarizes Jabil's restructuring, severance, and related charges, detailing costs for employee severance, lease costs, asset write-offs, and other expenses for various plans Summary of Restructuring, Severance and Related Charges (in millions) | Category | FY2025 | FY2024 | FY2023 | | :------------------------------------- | :----- | :----- | :----- | | Employee severance and benefit costs | $58 | $177 | $48 | | Lease costs | $6 | $2 | $— | | Asset write-off costs | $53 | $79 | $5 | | Other costs | $64 | $38 | $4 | | **Total restructuring, severance and related charges** | **$181** | **$296** | **$57** | - The 2025 Restructuring Plan, approved on **September 24, 2024**, is expected to incur approximately **$200 million** in pre-tax costs, including **$60-70 million** for employee severance, **$65-70 million** for asset write-offs, and **$55-65 million** for contract termination costs[495](index=495&type=chunk)[496](index=496&type=chunk) - The 2024 Restructuring Plan, approved on **September 26, 2023**, totaled approximately **$300 million** in pre-tax costs and was substantially complete as of **August 31, 2024**[498](index=498&type=chunk)[499](index=499&type=chunk) [Note 16. Income Taxes](index=94&type=section&id=Note%2016.%20Income%20Taxes) Presents Jabil's income tax information, including income before tax by geography, effective tax rates, tax incentives, indefinitely reinvested earnings, and unrecognized tax benefits Income (Loss) Before Income Tax Expense by Geography (in millions) | Geography | FY2025 | FY2024 | FY2023 | | :-------- | :----- | :----- | :----- | | Domestic | $(255) | $(366) | $(315) | | Foreign | $1,147 | $2,117 | $1,577 | | **Total** | **$892** | **$1,751** | **$1,262** | Effective Income Tax Rate | Fiscal Year Ended August 31, | Rate (%) | | :--------------------------- | :------- | | 2025 | 26.4 % | | 2024 | 20.7 % | | 2023 | 35.2 % | - Tax incentives in Malaysia, Singapore, Vietnam, Brazil, and Israel resulted in tax benefits of approximately **$75 million** in FY2025, **$54 million** in FY2024, and **$74 million** in FY2023[503](index=503&type=chunk) - As of **August 31, 2025**, Jabil had **$1.2 billion** in indefinitely reinvested earnings from foreign subsidiaries for which taxes had not been provided, with an estimated unrecognized deferred tax liability of approximately **$0.1 billion**[505](index=505&type=chunk) Unrecognized Tax Benefits (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :----- | :----- | :----- | | Beginning balance | $168 | $257 | $253 | | Ending balance | $142 | $168 | $257 | | Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $89 | $94 | $150 | - It is reasonably possible that the **August 31, 2025**, unrecognized tax benefits could decrease by **$16 million** during the next **12 months**, primarily due to lapses in statutes of limitations[510](index=510&type=chunk) [Note 17. Business Acquisitions and Divestitures](index=98&type=section&id=Note%2017.%20Business%20Acquisitions%20and%20Divestitures) Details Jabil's business acquisitions, including Pharmaceutics International, Inc. and Mikros Technologies LLC, and divestitures, such as Italian operations and the Mobility Business - On **February 3, 2025**, Jabil acquired Pharmaceutics International, Inc. (Pii) for **$309 million**, enhancing its Regulated Industries segment with contract development and manufacturing services[514](index=514&type=chunk)[515](index=515&type=chunk) - On **October 1, 2024**, Jabil acquired Mikros Technologies LLC for **$63 million**, a leader in liquid cooling solutions, allocated to the Intelligent Infrastructure segment[516](index=516&type=chunk)[517](index=517&type=chunk) - On **August 1, 2025**, Jabil divested its operations in Italy, resulting in a pre-tax loss of **$97 million**[520](index=520&type=chunk) - On **December 29, 2023**, Jabil completed the sale of its Mobility Business for approximately **$2.2 billion** in cash, resulting in a **$942 million** pre-tax gain in FY2024, with an additional **$54 million** pre-tax gain recognized in **March 2025** from post-closing adjustments[521](index=521&type=chunk)[523](index=523&type=chunk) [Note 18. Fair Value Measurements](index=99&type=section&id=Note%2018.%20Fair%20Value%20Measurements) Presents the fair value of Jabil's financial assets and liabilities, including cash equivalents, investments, and derivatives, and notes payable and long-term debt Fair Value of Financial Assets and Liabilities (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------------- | :-------------- | :-------------- | | Cash equivalents | $392 | $303 | | Short-term investments | $27 | $27 | | Derivatives designated as hedging instruments (assets) | $20 | $11 | | Derivatives not designated as hedging instruments (assets) | $26 | $25 | | Derivatives designated as hedging instruments (liabilities) | $14 | $34 | | Derivatives not designated as hedging instruments (liabilities) | $9 | $22 | - The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, accounts payable, and accrued expenses approximate fair value due to their short-term nature[526](index=526&type=chunk) Fair Value of Notes Payable and Long-Term Debt (in millions) | Note Type | August 31, 2025 (Carrying Amount) | August 31, 2025 (Fair Value) | August 31, 2024 (Carrying Amount) | August 31, 2024 (Fair Value) | | :------------------ | :-------------------------------- | :--------------------------- | :-------------------------------- | :--------------------------- | | 3.950% Senior Notes | $499 | $496 | $498 | $487 | | 3.600% Senior Notes | $498 | $480 | $497 | $468 | | 3.000% Senior Notes | $595 | $551 | $594 | $529 | | 1.700% Senior Notes | $499 | $492 | $499 | $476 | | 4.250% Senior Notes | $497 | $500 | $496 | $495 | | 5.450% Senior Notes | $297 | $308 | $296 | $306 | [Note 19. Commitments and Contingencies](index=101&type=section&id=Note%2019.%20Commitments%20and%20Contingencies) States that Jabil is involved in various legal actions incidental to its business but does not expect a material adverse effect on its financial position or results - Jabil is involved in various legal actions incidental to its business but does not believe these proceedings will have a material adverse effect on its financial position, results of operations, or cash flows[529](index=529&type=chunk) [Note 20. New Accounting Guidance](index=101&type=section&id=Note%2020.%20New%20Accounting%20Guidance) Reports that new accounting guidance adopted during the period and recently issued guidance are not expected to have a material impact on the company - New accounting guidance adopted during the period did not have a material impact on the company[530](index=530&type=chunk) - Recently issued accounting guidance is not applicable or is not expected to have a material impact on the company[531](index=531&type=chunk) [Note 21. Related Party Transactions](index=101&type=section&id=Note%2021.%20Related%20Party%20Transactions) Details related party transactions with Amazon's home security business, which became a related party after a Jabil director returned to Amazon as a Vice President - During fiscal year 2025, Jabil provided manufacturing services to Amazon's home security business, which became a related party transaction after James Siminoff, a Jabil director, returned to Amazon as a Vice President[532](index=532&type=chunk) - These related party transactions were not material to Jabil individually or in the aggregate for the fiscal year ended **August 31, 2025**[532](index=532&type=chunk) [Signatures](index=102&type=section&id=Signatures) The Form 10-K report is officially signed by Jabil Inc.'s Chief Executive Officer, Michael Dastoor, and other directors and officers, affirming compliance with the Securities Exchange Act of 1934 - The report is signed by Michael Dastoor, Chief Executive Officer, and other directors and officers, as required by the Securities Exchange Act of 1934[535](index=535&type=chunk)[538](index=538&type=chunk) [Financial Statement Schedule](index=104&type=section&id=Financial%20Statement%20Schedule) [Schedule II – Valuation and Qualifying Accounts](index=104&type=section&id=Schedule%20II%20%E2%80%93%20Valuation%20and%20Qualifying%20Accounts) Presents detailed schedules for Jabil's reserve for excess and obsolete inventory and the valuation allowance for deferred taxes for the fiscal years ended August 31, 2025, 2024, and 2023 Reserve for Excess and Obsolete Inventory (in millions) | Fiscal Year Ended August 31, | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Write-offs | Balance at End of Period | | :--------------------------- | :----------------------------- | :-------------------------------------- | :--------- | :----------------------- | | 2025 | $63 | $26 | $(22) | $67 | | 2024 | $58 | $40 | $(35) | $63 | | 2023 | $82 | $34 | $(31) | $58 | Valuation Allowance for Deferred Taxes (in millions) | Fiscal Year Ended August 31, | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions/ (Reductions) Charged to Other Accounts | Reductions Charged to Costs and Expenses | Balance at End of Period | | :--------------------------- | :----------------------------- | :-------------------------------------- | :------------------------------------------------ | :--------------------------------------- | :----------------------- | | 2025 | $368 | $30 | $23 | $(21) | $400 | | 2024 | $303 | $96 | $3 | $(34) | $368 | | 2023 | $281 | $28 | $9 | $(15) | $303 |

Core Insights - Axiado Corporation and Jabil Inc. are collaborating to develop AI-driven cybersecurity solutions and modular hardware systems for next-generation AI and cloud workloads, to be showcased at the OCP Global Summit 2025 [1][2][3] Company Collaboration - Axiado's Secure Control Module (SCM3002) will be integrated into Jabil's AMD EPYC "Turin"-based 2U platform server, enhancing security and system management capabilities [2][3] - The partnership leverages Axiado's strengths in AI-driven security and Jabil's advanced server design to create a unified solution for data centers and hyperscalers [3] Product Availability - Axiado's Trusted Control/Compute Units (TCUs) and OCP DC-SCM 2.0 compliant modules (SCM3002 and SCM3003) are currently available for purchase [4] Company Background - Axiado is focused on redefining platform security and system management at the silicon level, utilizing autonomous AI agents to optimize systems in real-time for hyperscale data centers and AI-driven workloads [5]

Key Takeaways Jabil expects 2025 sales and EPS to rise 5.1% and 13.3%, supported by AI and automation demand.Arista projects 2025 sales and EPS to grow 25.4% and 23.8%, driven by AI networking momentum.JBL trades at 17.7 forward earnings versus ANET's 47.2, yet ANET's AI exposure gives it the edge.Jabil Inc. (JBL) and Arista Networks, Inc. (ANET) are two leading players in the technology manufacturing industry. Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solution ...

Core Insights - Jabil has seen a significant stock price increase of approximately 40% year-to-date, outperforming the S&P 500's 18% rise, driven by demand from AI infrastructure and data center clients, along with a $1 billion share buyback announcement [2][3] - Despite the stock's performance, Jabil's fundamentals do not fully support the current market excitement, indicating potential caution for investors [3] Financial Performance - Jabil's revenue has shown a slight increase of 3% over the past twelve months, reaching $30 billion, but has regressed by about 3% annually over the last three years [5][6] - The latest quarter reported an 18% year-over-year revenue increase, primarily due to AI and data center demand, yet long-term growth trends appear stagnant compared to the S&P 500's steady mid-single-digit growth [6] Profitability Analysis - Jabil's operating margin is less than 5%, and its net margin is only 2%, significantly lower than the average of approximately 12% for major U.S. firms [7] - The company's ability to convert revenue into profit is limited, particularly in cyclical sectors like electronics and automotive manufacturing [8] Financial Stability - Jabil maintains a robust balance sheet with a current debt level of about $3 billion, supported by a market capitalization of approximately $22 billion, and a debt-to-equity ratio close to 15% [9] - The company has around $2 billion in cash, resulting in a healthy 10% cash-to-assets ratio, providing flexibility for investments and share repurchases [10] Market Resilience - Historically, Jabil's stock has shown volatility, with significant declines during economic downturns, including a 29% drop during the 2022 inflation crisis and a 57% drop during the 2020 pandemic [11][12] - Although the stock has managed to recover from past downturns, its sensitivity to economic fluctuations and supply chain issues remains a concern [12] Final Assessment - Jabil's fundamentals do not justify its recent price increase, with weak growth prospects, thin margins, and inconsistent operational performance [13] - Despite the current interest in AI-driven demand and share buybacks, the stock appears unfavorable when evaluating risk versus reward, as it operates in a cyclical, low-margin business within an unstable global landscape [14]

Insider Stock Moves - The CEO of Gemma Power Systems, a subsidiary of an engineering and construction firm, sold 5,000 shares for $1.4 million, with the stock up more than 90% this year [2] - A senior VP at Snowflake sold nearly 12,000 shares for a total of $2.6 million, with the stock up more than 50% this year [2] - A board member at Jabil sold over 12,000 shares for $1.5 million, with the stock up about 40% year to date [3] - The CFO of JM Smucker sold about 11,000 shares for more than $1.2 million, reducing his holdings by almost 25%, with the stock up about 4% over the last four months [3]

Group 1 - Jabil Inc. is recognized as a top stock in the contract manufacturing space, with Jim Cramer defending the company after its fiscal fourth quarter earnings report released on September 25th [2] - Despite a decline in stock price following the earnings report, Cramer maintains confidence in Jabil Inc., attributing the drop to broader negative market sentiment rather than company performance [2][3] - Cramer describes Jabil as "one of the greatest technology companies" that is versatile in manufacturing across various sectors, emphasizing its strong demand and adaptability to tariffs [3] Group 2 - The article suggests that while Jabil has potential as an investment, there are AI stocks that may offer higher returns with limited downside risk [3] - A free report is mentioned that highlights an extremely cheap AI stock benefiting from Trump tariffs and onshoring, indicating a competitive landscape in the investment space [3]

Core Viewpoint - Jabil's stock dropped after its fiscal 2025 fourth-quarter results, despite stronger-than-expected performance, presenting a potential buying opportunity for investors [1][2]. Group 1: Financial Performance - Jabil reported a 15% increase in non-GAAP earnings to $9.75 per share in the previous fiscal year, with management forecasting a 13% increase to $11.00 per share for the current fiscal year [10]. - The company experienced a 17% year-over-year increase in revenue last quarter, alongside a 43% increase in earnings [6]. - Jabil's overall revenue is expected to grow by 5% in fiscal 2026, while AI revenue is projected to spike by 25% [5]. Group 2: AI Business Growth - Jabil's AI revenue surged by 80% in the previous fiscal year, reaching $9 billion, significantly outpacing the company's overall revenue growth of 3% to $29.8 billion [4]. - The AI business now accounts for 30% of Jabil's total revenue, with expectations for further growth in fiscal 2026 [5]. - The AI server market is anticipated to grow at an annual rate of nearly 39% through 2030, indicating strong long-term growth potential for Jabil's AI segment [8]. Group 3: Strategic Investments - Jabil plans to invest $500 million in a new facility in North Carolina to enhance manufacturing capabilities for cloud and AI data center components, addressing capacity constraints [7]. - The company is well-positioned to capitalize on the strong demand for AI-driven solutions, as indicated by management's comments on the latest earnings call [7]. Group 4: Valuation and Market Position - Jabil's stock trades at a forward earnings multiple of 20, which is lower than the Nasdaq-100 index's multiple of 27, suggesting potential for price appreciation [12]. - Analysts project that if Jabil achieves earnings of $14.66 per share by fiscal 2028, the stock price could increase to $396, representing an 82% upside from current levels [12][13].

Core Viewpoint - Jabil Inc. is highlighted as a strong performer in the contract manufacturing sector, with recent financial results exceeding expectations, despite a temporary stock sell-off following the announcement [1] Company Summary - Jabil provides outsourced manufacturing services across various industries, including healthcare, automotive, and electronics [1] - The company reported a strong quarterly performance, with better-than-expected guidance for the upcoming quarter [1] - Following the earnings report, Jabil's stock experienced a decline of nearly 7% in a single session, although it has since recovered about one-third of those losses [1] - The conservative revenue guidance may have contributed to the stock's initial sell-off, alongside profit-taking behavior from investors [1] Industry Summary - The contract manufacturing sector is currently experiencing a quiet bull market, with companies like Jabil benefiting from increased demand for outsourced manufacturing [1] - The sector is characterized by companies that provide a wide range of manufacturing services beyond traditional contract manufacturing [1]