Jabil Q1 Earnings Surpass Estimates on Strong Revenue Growth

Core Insights - Jabil, Inc. (JBL) reported strong first-quarter fiscal 2026 results, with both net income and revenues exceeding the Zacks Consensus Estimate, driven by growth in data center infrastructure, capital equipment, and healthcare markets [1] Financial Performance - Net income on a GAAP basis was $146 million or $1.35 per share, up from $100 million or 88 cents in the prior-year quarter, primarily due to top-line growth [2] - Non-GAAP net income for the quarter was $309 million or $2.85 per share, compared to $228 million or $2 per share in the prior-year quarter, surpassing the Zacks Consensus Estimate of $2.72 [2] - Revenues increased to $8.3 billion from $6.99 billion year-over-year, beating the consensus estimate of $8.07 billion, with strong demand in the Intelligent Infrastructure segment [3] Segment Performance - The Regulated Industries segment contributed 37% to revenues, showing a 4% year-over-year growth driven by healthcare and packaging markets [3] - The Intelligent Infrastructure segment accounted for 46% of total revenues, surging 54% year-over-year, supported by demand in capital equipment, AI-related cloud, and data center infrastructure [4] - The Connected Living & Digital Commerce segment contributed 17% of total revenues, experiencing a 10% year-over-year decline due to soft demand for consumer-driven products, although growth in digital commerce partially mitigated this trend [4] Profitability Metrics - Gross profit was $742 million, up from $606 million in the year-ago quarter [5] - Non-GAAP operating income was $454 million, an increase from $347 million in the prior-year period, with a non-GAAP operating margin of 5.5%, up from 5% [5] Cash Flow and Liquidity - Jabil generated $323 million of net cash from operating activities, compared to $312 million a year ago [6] - As of November 30, 2025, the company had $1.57 billion in cash and cash equivalents, with $2.38 billion in notes payable and long-term debt [6] - Free cash flow stood at $272 million, compared to $226 million a year ago [6] Future Outlook - Management anticipates AI data center infrastructure, healthcare, and advanced warehouse and retail automation to be key growth drivers in 2026 [7] - For fiscal 2026, revenues are projected at $32.4 billion, with non-GAAP earnings per share expected to be $11.55, and the company aims to generate over $1.3 billion in adjusted free cash flow [7]