Financial Performance - Q2 FY2025 - Net revenue was $6.728 billion, a slight decrease compared to $6.767 billion in the same period last year[4] - U.S GAAP operating income was $245 million, a significant decrease from $1.131 billion in the prior year[4] - Core operating income (non-GAAP) was $334 million, slightly down from $338 million year-over-year[4] - Core diluted earnings per share (non-GAAP) increased to $1.94, compared to $1.68 in the previous year[4] Segment Results - Q2 FY2025 - Regulated Industries net revenue decreased by 8% year-over-year, with a core margin of 4.8%[8] - Intelligent Infrastructure net revenue increased by 18% year-over-year, with a core margin of 5.3%[8] - Connected Living & Digital Commerce net revenue decreased by 13% year-over-year, with a core margin of 4.5%[8] Cash Flow - Q2 FY2025 - Net cash provided by operating activities was $334 million[10] - Adjusted free cash flow (non-GAAP) was $261 million[10] - Share repurchases amounted to $404 million[10] FY25 Outlook - The company anticipates full year net revenue of $27.9 billion[24] - The company anticipates full year core operating margin of 5.4%[24] - The company anticipates full year core EPS of $8.95[24]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business in the prior year quarter [8] - Core operating income was $334 million with core operating margins at 5% [8] - GAAP diluted earnings per share was $1.06, while core diluted earnings per share was $1.94, up $0.26 from Q2 of last year [9][30] - Adjusted free cash flow for Q2 was $261 million, bringing year-to-date adjusted free cash flow to $487 million, with expectations to exceed $1.2 billion for the year [16][37] Performance by Business Segment - Regulated Industry segment reported revenue of approximately $2.7 billion, down 8% year-on-year due to weakness in renewable energy and EV markets, but core operating margin increased to 4.8% [10] - Intelligent Infrastructure segment saw revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure [11] - Connected Living & Digital Commerce segment revenue was $1.3 billion, down 13% year-on-year, but grew approximately 4% when excluding the divested mobility business [12] Market Data and Key Metrics Changes - Anticipated revenue for the Intelligent Infrastructure segment in Q3 is expected to be $2.8 billion, up approximately 22% year-over-year [19] - Revenue for the Connected Living & Digital Commerce segment in Q3 is expected to be $1.2 billion, down 16% year-over-year [20] - Overall company revenue for Q3 is expected to be in the range of $6.7 billion to $7.3 billion [21] Company Strategy and Industry Competition - The company is focusing on maintaining a large-scale global manufacturing footprint to navigate geopolitical complexities and potential tariffs [25] - Jabil is well-positioned to support customers in shifting manufacturing to the U.S., with 30 sites across the country [45] - The company anticipates strong growth in AI-related business, expecting approximately $7.5 billion in revenue for FY 2025, representing a 40% year-on-year increase [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified portfolio, with certain markets like capital equipment and data center infrastructure outperforming [30] - Caution was advised regarding electric vehicles, renewables, and 5G markets due to current uncertainties [39] - The company is actively monitoring tariff situations and believes it is well-positioned to adapt to changes [38] Other Important Information - The company completed the acquisition of Pharmaceuticals International Inc., enhancing its capabilities in the pharmaceutical sector and opening a $20 billion addressable market [35] - Inventory days increased to 80 days sequentially but decreased by 7 days year-on-year, reflecting typical seasonality [13] Q&A Session Summary Question: Can you talk about your existing footprint in the US and the ability to support customers who want to move manufacturing? - Management highlighted the extensive U.S. footprint with 30 sites and the capability to quickly establish operations to support customer needs [45][46] Question: Can you elaborate on the opportunity with silicon photonics and how you see that market growing? - Management indicated strong growth in AI revenue and highlighted the acquisition from Intel that enhanced capabilities in silicon photonics [51][52] Question: What should we read into the slight reductions in networking and healthcare forecasts for fiscal 2025? - Management clarified that the reductions were primarily due to uncertainties in the 5G infrastructure market [56] Question: Can you expand on the comment about GPU racks and liquid cooling continuing to accelerate? - Management explained that improved yields at launch are driven by design architecture and engineering capabilities, with significant potential in liquid cooling solutions [101][102] Question: How confident are you about EV production for the second half of the year? - Management expressed prudence in forecasts but noted that there are positive developments in the Chinese EV market that could offset some concerns [105][106]

Core Insights - Jabil (JBL) reported quarterly earnings of $1.94 per share, exceeding the Zacks Consensus Estimate of $1.81 per share, and showing an increase from $1.68 per share a year ago, representing an earnings surprise of 7.18% [1] - The company achieved revenues of $6.73 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 4.93%, although this is a slight decrease from $6.77 billion in the same quarter last year [2] - Jabil has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $6.73 billion, and for the current fiscal year, it is $8.76 on revenues of $27.32 billion [7] - The estimate revisions trend for Jabil is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Manufacturing Services industry, to which Jabil belongs, is currently ranked in the top 4% of over 250 Zacks industries, suggesting a strong outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business [6][7] - Core operating income was $334 million with core operating margins at 5% [7] - GAAP diluted earnings per share was $1.06, while core diluted earnings per share was $1.94, an increase of $0.26 from Q2 of the previous year [7][19] - Adjusted free cash flow for the quarter was $261 million, bringing year-to-date adjusted free cash flow to $487 million, with expectations to exceed $1.2 billion for the full year [10][25] Performance by Business Segment - Regulated Industry segment reported revenue of approximately $2.7 billion, down 8% year-on-year due to weakness in renewable energy and EV markets, but core operating margin increased by 20 basis points to 4.8% [7][8] - Intelligent Infrastructure segment saw revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure [8][19] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down 13% year-on-year, but grew approximately 4% when excluding the divested mobility business [8][9] Market Data and Key Metrics Changes - Inventory days increased by four days sequentially to 80 days, but decreased by seven days year-on-year [9] - The company anticipates revenue for Q3 2025 to be between $6.7 billion and $7.3 billion, with core operating income estimated between $348 million and $408 million [12] Company Strategy and Industry Competition - The company is well-positioned to navigate potential tariffs and geopolitical complexities, emphasizing its U.S. domicile manufacturing footprint [15][18] - Jabil expects to play a significant role in the Indian market, particularly in photonics capabilities [21][22] - The company is focusing on growth in AI-related business, projecting approximately $7.5 billion in revenue for FY 2025, representing a 40% year-on-year increase [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified portfolio, with certain markets like capital equipment and data center infrastructure outperforming [19][27] - Caution was advised regarding the EV and renewable energy markets, with expectations for continued growth in Intelligent Infrastructure [24][25] - The company is actively monitoring supply chain dynamics and customer procurement strategies in light of potential tariffs [99][100] Other Important Information - The company completed the acquisition of U.S.-based Pharmaceuticals International Inc., enhancing its capabilities in the pharmaceutical sector [23][106] - Jabil repurchased 2.5 million shares during the quarter, with $364 million remaining on its share repurchase authorization [10] Q&A Session Summary Question: Can you talk about your existing footprint in the U.S.? - Management highlighted the extensive U.S. footprint with 30 sites and the capability to support customers wanting to move manufacturing [30][34] Question: Can you elaborate on the opportunity with silicon photonics? - The company is well-positioned in silicon photonics, with significant growth expected in this area due to recent acquisitions and capabilities [36][38] Question: What should we read into the slight reduction in networking and healthcare forecasts? - The reduction is primarily due to uncertainty in the 5G infrastructure side, not affecting AI-related revenue [40] Question: What is driving the positive change in Intelligent Infrastructure? - Growth in semi-cap and cloud data center infrastructure is driving confidence, with strong demand for automated testing and custom chips [46][48] Question: Can you expand on GPU racks and liquid cooling? - The company is improving yields at launch due to better design architecture and engineering capabilities, with liquid cooling opening new opportunities [81][82] Question: How confident are you about EV production in the second half of the year? - Management is being prudent with forecasts, but sees potential growth in the Chinese EV market offsetting some concerns [84] Question: How are customers responding to potential tariffs? - Customers are considering localized supply chains, but no major changes have been completed yet [100][101] Question: Are there any other capabilities you are looking to acquire? - The company is actively exploring further acquisitions to fill capability gaps, particularly in pharmaceuticals [106][107]

Financial Performance - Net revenue for Q2 fiscal year 2025 was $6.7 billion, slightly down from $6.8 billion in Q2 fiscal year 2024[5]. - U.S. GAAP operating income for Q2 was $245 million, compared to $1.1 billion in the same quarter last year[17]. - Core diluted earnings per share (Non-GAAP) for Q2 was $1.94, down from $7.31 in Q2 fiscal year 2024[17]. - The company reported a net income of $117 million for Q2, significantly lower than $927 million in Q2 fiscal year 2024[17]. - Net income for the six months ended February 28, 2025, was $217 million, a decrease from $1,121 million for the same period in 2024, representing a decline of approximately 80.7%[19]. - Operating income (U.S. GAAP) for the six months ended February 28, 2025, was $442 million, down from $1,434 million in the prior year, reflecting a decrease of about 69.1%[20]. - Diluted earnings per share (U.S. GAAP) for the six months ended February 28, 2025, was $1.93, down from $8.66 in the same period of 2024, a decline of approximately 77.7%[20]. Revenue Outlook - The company expects third quarter net revenue to be between $6.7 billion and $7.3 billion[3]. - Fiscal year 2025 net revenue outlook is set at $27.9 billion, with a core operating margin of 5.4%[4]. Cash Flow and Assets - Adjusted free cash flow for fiscal year 2025 is projected to exceed $1.2 billion[4]. - Total current assets as of February 28, 2025, were $12.6 billion, a decrease from $12.8 billion as of August 31, 2024[15]. - Cash and cash equivalents at the end of the period were $1,592 million, down from $2,566 million at the end of the same period in 2024, a decrease of about 37.9%[19]. - The company reported a net cash provided by operating activities of $646 million for the six months ended February 28, 2025, compared to $666 million for the same period in 2024, a slight decrease of 3%[22]. - Adjusted free cash flow (Non-GAAP) for the six months ended February 28, 2025, was $487 million, significantly higher than $221 million for the same period in 2024, indicating an increase of approximately 120%[22]. - Total cash flows used in financing activities for the six months ended February 28, 2025, were $746 million, compared to $1,455 million in the same period of 2024, a decrease of about 48.8%[19]. - The company reported a decrease in cash flows from investing activities, with a net cash used of $503 million for the six months ended February 28, 2025, compared to a net cash provided of $1,558 million in the prior year[19]. Business Operations - Jabil's diversified portfolio continues to show resilience, particularly in capital equipment and cloud infrastructure markets[2]. - The company incurred $361 million in cash paid for business and intangible asset acquisitions, net of cash, during the six months ended February 28, 2025, compared to $93 million in the prior year[19]. - The company recorded a gain from the divestiture of businesses of $942 million in the prior year, which significantly impacted the year-over-year comparison[20].

Financial Performance - Jabil Inc. is set to release its second-quarter financial results on March 20, with expected earnings of $1.83 per share, an increase from $1.68 per share in the same period last year [1] - The company projects quarterly revenue of $6.4 billion, down from $6.77 billion a year earlier [1] Strategic Collaborations - On February 25, Jabil announced a pilot and strategic collaboration with Apptronik to develop Apollo humanoid robots for integration into specific manufacturing operations [2] Analyst Ratings - Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $160 to $179 [4] - Barclays analyst George Wang maintained an Overweight rating and increased the price target from $157 to $179 [4] - Stifel analyst Matthew Sheerin reiterated a Buy rating and boosted the price target from $150 to $160 [4] - UBS analyst David Vogt maintained a Neutral rating and increased the price target from $128 to $152 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating but cut the price target from $137 to $133 [4]

Core Insights - Jabil (JBL) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 5.05% [1] - The company reported earnings of $2 per share for the most recent quarter, surpassing the expected $1.87 per share, resulting in a surprise of 6.95% [2] - For the previous quarter, Jabil's actual earnings were $2.30 per share against an estimate of $2.23, yielding a surprise of 3.14% [2] Earnings Estimates and Predictions - Recent estimates for Jabil have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a likelihood of an earnings beat [3] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - Jabil currently has an Earnings ESP of +0.92%, suggesting analysts are optimistic about its near-term earnings potential [6] Zacks Rank and Earnings Release - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a strong possibility of another earnings beat for Jabil [6] - The next earnings report for Jabil is anticipated to be released on March 20, 2025 [6] Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings outcomes, as a negative value can diminish its predictive power, but does not necessarily indicate a miss [7] - Companies can still beat consensus EPS estimates despite a negative Earnings ESP, and some stocks may remain stable even if they miss estimates [7] - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell prior to earnings reports [8]

Financial Performance - Jabil Inc. is set to release its second-quarter financial results on March 20, with analysts expecting earnings of $1.83 per share, an increase from $1.68 per share in the same period last year [1] - The company projects quarterly revenue of $6.4 billion, down from $6.77 billion a year earlier [1] - Goldman Sachs analyst Mark Delaney has maintained a Buy rating on Jabil and raised the price target from $160 to $179 [1] Dividend Information - Jabil currently offers an annual dividend yield of 0.24%, with a quarterly dividend of 8 cents per share, totaling 32 cents annually [2] - To earn $500 monthly from dividends, an investment of approximately $2,542,875 or around 18,750 shares is required, while $100 monthly would need about $508,575 or 3,750 shares [2] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on stock price changes [3] Market Reaction - Jabil's shares fell by 2% to close at $135.62 on Tuesday [4]

Core Viewpoint - Jabil Inc. is expected to report a revenue decline in Q2 fiscal 2025 due to competition, demand softness, and macroeconomic challenges, despite strategic acquisitions and innovations potentially providing some support [2][5]. Group 1: Earnings Expectations - Jabil is set to release its Q2 fiscal 2025 results on March 20, with a consensus revenue estimate of $6.41 billion, down from $6.77 billion in the same quarter last year [6]. - The consensus estimate for earnings per share (EPS) is $1.81, reflecting an improvement from $1.68 reported in the prior-year quarter [6]. - The company achieved a trailing four-quarter earnings surprise of 3.52% on average, with a 6.95% surprise in the last reported quarter [1][6]. Group 2: Strategic Developments - Jabil has collaborated with Apptronik to support the production of Apollo humanoid robots, which will be integrated into its manufacturing operations for various tasks, enhancing its position in manufacturing automation [3]. - The acquisition of Pharmaceutics International, Inc. is expected to significantly enhance Jabil's pharmaceutical product offerings, allowing for the development of advanced solutions for pharma companies [4]. Group 3: Market Challenges - Soft demand trends in sectors like Networks and Communications and Connected Living are anticipated to hinder net sales growth [5]. - Increased competition from both domestic and international electronic manufacturers and service providers is impacting margins [5].

Company Performance - Jabil's stock closed at $157.51, reflecting a -1% change from the previous trading day, which lagged behind the S&P 500's daily loss of 0.47% [1] - Over the past month, Jabil's shares experienced a loss of 0.27%, outperforming the Computer and Technology sector's loss of 4.34% and the S&P 500's loss of 1.78% [1] Earnings Estimates - Jabil is expected to report an EPS of $1.81, representing a 7.74% increase compared to the same quarter last year [2] - Revenue is forecasted to be $6.41 billion, indicating a 5.25% decline from the corresponding quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $8.78 per share, with revenue expected to be $27.35 billion, reflecting changes of +3.42% and -5.31% respectively from the previous year [3] - Changes in analyst estimates are crucial as they indicate the evolving nature of near-term business trends, with positive revisions suggesting analyst optimism [3] Valuation Metrics - Jabil has a Forward P/E ratio of 18.13, which is lower than the industry average Forward P/E of 18.92, suggesting that Jabil is trading at a discount [6] - The company has a PEG ratio of 1.45, compared to the industry average PEG ratio of 1.26, indicating a relatively higher valuation when considering growth [7] Industry Context - The Electronics - Manufacturing Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 4, placing it in the top 2% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]