Core Insights - Jabil, Inc. (JBL) reported strong fourth-quarter fiscal 2025 results, with both net income and revenues exceeding expectations, driven by growth in data center infrastructure, capital equipment, healthcare, and retail automation markets [1] Financial Performance - Net income on a GAAP basis for the quarter was $218 million or $1.99 per share, up from $138 million or $1.18 in the prior-year quarter, primarily due to top-line growth [2] - Non-GAAP net income for the quarter was $360 million or $3.29 per share, compared to $270 million or $2.30 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $2.95 [2] - For fiscal 2025, GAAP net income was $657 million or $5.92 per share, down from $1.38 billion or $11.17 per share a year ago; non-GAAP net income was $1.08 billion or $9.75 per share, compared to $1.05 billion or $8.49 per share in fiscal 2024 [3] Revenue Growth - Net sales for the quarter increased to $8.3 billion from $6.96 billion in the year-ago quarter, beating the consensus estimate of $7.66 billion, driven by strong demand in the Intelligent Infrastructure segment [4] - The Regulated Industries segment contributed 38% to revenues, with a 3% year-over-year growth attributed to the healthcare and packaging end market [4] - Intelligent Infrastructure accounted for 45% of total revenues, with a significant 62% year-over-year increase, supported by demand in capital equipment and AI-related cloud and data center infrastructure [5] - The Connected Living & Digital Commerce segment contributed 17% of total revenues, experiencing a 14% year-over-year decline due to soft demand for consumer-driven products, although strong growth in digital commerce partially mitigated this trend [5] Profitability Metrics - Gross profit for the quarter was $783 million, up from $663 million in the year-ago quarter; non-GAAP operating income was $337 million, an increase from $318 million in the prior year [6] - Non-GAAP operating margin improved to 6.3%, up from 5.8% in the year-ago quarter [6] Cash Flow and Liquidity - In fiscal 2025, Jabil generated $1.64 billion of net cash from operating activities, slightly down from $1.71 billion a year ago; as of August 31, 2025, the company had $1.93 billion in cash and cash equivalents, with $2.38 billion in notes payable and long-term debt [7] - Free cash flow stood at $1.31 billion, compared to $1.05 billion in 2024 [7] Future Guidance - For the first quarter of fiscal 2026, revenues are expected to be in the range of $7.7 billion to $8.3 billion, with non-GAAP operating income projected between $400 million and $460 million; non-GAAP earnings per share are estimated to be between $2.47 and $2.87 [8][9] - Management anticipates that AI data center infrastructure, healthcare, and advanced warehouse and retail automation will be the major growth drivers in 2026, projecting fiscal 2026 revenues at $31.3 billion and non-GAAP earnings per share at $11.00 [9]

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Group 1 - Jabil Inc. (NYSE:JBL) is recognized as a relatively undervalued stock within the S&P 500, with positive remarks from Jim Cramer highlighting its role as a contract manufacturer in electronics [1] - The company provides a range of manufacturing and design solutions, serving various industries including healthcare, mobility, cloud, and automotive [1] - Jabil has been actively buying back stock at an annual rate of 5%, indicating strong financial health and commitment to shareholder value [1] Group 2 - The competitive landscape includes Celestica, which is performing well, suggesting that Jabil may need to enhance its value proposition to remain competitive [1] - While Jabil shows potential as an investment, there are AI stocks that may offer greater upside potential and lower downside risk, indicating a shift in investment focus within the tech sector [1]

Group 1 - The article does not provide any specific information or data regarding companies or industries [1]

Corporate Earnings Overview - Corporate earnings are a primary driver of stock market returns, with the current bull market supported by a resilient corporate backdrop, particularly in the tech sector due to an investment boom in artificial intelligence [1][2] - Total earnings growth in Q2 was 12.5% year-over-year, with revenues up 6.2%, both exceeding estimates, indicating strong corporate performance despite concerns like tariffs [3][4] - S&P 500 earnings for Q3 are expected to rise by 5.1% year-over-year, with a 6% increase in revenues, although this reflects a deceleration compared to Q3 2024 [5] Earnings Revisions and Outlook - The trend of earnings estimate revisions for Q3 has been mainly positive since April-May, with increases noted in sectors like technology and financials, which is seen as a bullish sign [7] - Annual S&P 500 earnings are projected to increase by 9.3% in 2025, supported by a 4.1% rise in revenues, with expectations for accelerated growth in the coming years [9][10] Company-Specific Insights - Jabil (JBL) reported fiscal Q4 earnings of $3.29 per share, surpassing estimates by 11.5%, with revenues of $8.25 billion, exceeding consensus by 7.67% [13][14] - Costco (COST) is expected to report fiscal Q4 earnings of $5.81 per share, reflecting a 12.8% growth year-over-year, with revenues projected at $86.23 billion [16][20] - Costco's performance will provide insights into membership trends and consumer behavior, particularly in a value-focused retail environment [17][20]

Core Insights - Jabil reported fiscal fourth-quarter 2025 results that exceeded Wall Street expectations, with adjusted earnings per share of $3.29 compared to the consensus estimate of $2.92 [1] - The company experienced a quarterly net revenue of $8.25 billion, representing an 18.5% year-over-year increase, surpassing the analyst consensus estimate of $7.59 billion [2] - Jabil's core EBITDA for the quarter was $674 million, an increase from $558 million a year ago, indicating strong financial performance [3] Revenue Breakdown - Regulated Industries revenue grew by 3% year-over-year, while Intelligent Infrastructure revenue surged by 62% year-over-year [2] - Connected Living & Digital Commerce revenue saw a decline of 14% year-over-year [2] Strategic Outlook - Jabil anticipates fiscal first-quarter 2026 net revenue between $7.7 billion and $8.3 billion, exceeding the analyst estimate of $7.52 billion, and adjusted EPS of $2.47 to $2.87, against a consensus estimate of $2.40 [5] - For fiscal 2026, the company projects net revenue of $31.3 billion, compared to the analyst consensus of $29.12 billion, and adjusted EPS of $11.00, versus a consensus estimate of $9.40 [5] Market Commentary - CEO Mike Dastoor highlighted the strength in AI-driven demand across various sectors, which helped offset pressures in Automotive and Renewables, showcasing the resilience of Jabil's diversified business model [4] - The company's performance reflects its ability to execute effectively in a dynamic environment while advancing its long-term strategy [4]

All right, let's uh let's squeeze in a quick mad dash here as we get ready to open trading an hour, hour, a minute and a half from now. Uh Jay, Bill. >> Okay, so remember I said they're throwing out the good with the bad.J Bill had an excellent quarter today. Beat every single number and suddenly people find something wrong. I mean, look, they reported 329 people looking for for 295.It was fabulous. The forecast was great. But today's a bad day.So there everything goes down. I don't want you to read into Ja ...

Group 1 - Company reported strong quarterly results, exceeding expectations with 329 people looking for 295, indicating a solid performance despite market negativity [1] - The market reaction is not reflective of the company's actual performance, as good companies are being unfairly impacted by broader market trends [2] - There is a concern about market integrity, with mentions of insider selling and erratic price movements affecting investor sentiment [3] Group 2 - The overall market sentiment is negative, leading to a sell-off of even well-performing stocks, suggesting a disconnect between company performance and market valuation [2] - The commentary highlights the need for investors to differentiate between strong companies and broader market issues, indicating potential investment opportunities in undervalued stocks [2][3]

Financial Performance - Jabil reported quarterly earnings of $3.29 per share, exceeding the Zacks Consensus Estimate of $2.95 per share, and up from $2.30 per share a year ago, representing an earnings surprise of +11.53% [1] - The company posted revenues of $8.25 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 7.67%, compared to $6.96 billion in the same quarter last year [2] Market Performance - Jabil shares have increased approximately 56.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 12.9% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.47 on revenues of $7.47 billion, and for the current fiscal year, it is $10.97 on revenues of $30.72 billion [7] - The Zacks Industry Rank indicates that the Electronics - Manufacturing Services sector is in the top 19% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8]

Financial Data and Key Metrics Changes - For Q4, the company reported approximately $8.3 billion in revenue, exceeding guidance by roughly $800 million, with core operating income at $519 million and core operating margin at 6.3%, a 50 basis point improvement year-over-year [9][10] - Core diluted earnings per share was $3.29, while GAAP diluted earnings per share came in at $1.99 [9][10] - Full-year adjusted free cash flow was over $1.3 billion, with a healthy balance sheet showing a debt-to-core EBITDA ratio of 1.3x and cash balances of approximately $1.9 billion [12][13] Segment Performance Changes - Regulated Industries revenue was $3.1 billion, with a year-over-year increase of approximately 3% and core operating margin expanding by 40 basis points to 6.5% [10] - Intelligent Infrastructure revenue reached $3.7 billion, $400 million above expectations, with a core operating margin of 5.9% [10][11] - Connected Living and Digital Commerce revenue totaled $1.4 billion, reflecting a year-over-year decline of approximately 14%, but core operating margin improved by 210 basis points to 6.6% [11][34] Market Data and Key Metrics Changes - The automotive and transportation market is experiencing a decline of 5% due to slowing demand for battery electric vehicles in the U.S. and Europe, while healthcare outsourcing is expected to enter a growth phase [49][50] - The company anticipates Intelligent Infrastructure revenue to grow by 18% in FY 2026, driven by AI-related demand across capital equipment and cloud infrastructure [54][55] Company Strategy and Industry Competition - The company is focusing on system-level integration across its segments, particularly in Intelligent Infrastructure, to enhance customer deployment speed and reduce costs [51][52] - A deliberate shift in the Connected Living and Digital Commerce segment is underway, moving away from lower-margin legacy consumer programs towards higher-margin automation and advanced technologies [7][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified model despite mixed dynamics across end markets, with strong performance in AI-related sectors offsetting weaknesses in automotive and renewables [36][60] - The company expects approximately 5% revenue growth for FY 2026, with core operating margin expanding to around 5.6% [57][58] Other Important Information - The company completed a $1 billion share repurchase authorization and plans to return 80% of annual adjusted free cash flow to shareholders [12][14] - The company is investing in AI and automation across its operations to enhance efficiency and competitiveness [44][46] Q&A Session Summary Question: Can you provide details on growth areas in AI? - The company expects 25% year-over-year growth in AI revenue, with significant growth in capital equipment and cloud infrastructure, while maintaining strong positions in existing markets [64][65]