Jabil Q4 Earnings Surpass Estimates on Strong Revenue Growth

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]