Jabil Eyes Strong Fiscal 2026 with $31.3 Billion Revenue Target and Robust Free Cash Flow
2025 Results Underscore Resilient Diversification and AI-Led Growth
Jabil Inc. (NYSE: JBL) wrapped up its fiscal year 2025 with strong numbers across the board, fueled by a resilient and diversified business model. According to preliminary results for the period ended August 31, 2025, Jabil reported notable revenue growth and a substantial increase in core diluted earnings per share (EPS), navigating pressures in Automotive and Renewables thanks to robust AI-driven demand across data centers, capital equipment, and networking. The company's focus on portfolio shifts in Connected Living and Digital Commerce further underpinned this outperformance.
Financial Highlights Show Broad-Based Improvement
| Key Metrics | Q4 FY25 | FY25 |
|---|---|---|
| Net Revenue | $8.30 billion | $29.80 billion |
| GAAP Operating Income | $337 million | $1.20 billion |
| GAAP Diluted EPS | $1.99 | $5.92 |
| Core Operating Income (Non-GAAP) | $519 million | $1.60 billion |
| Core Diluted EPS (Non-GAAP) | $3.29 | $9.75 |
| Adjusted Free Cash Flow (Non-GAAP) | $1.32 billion (FY25) | |
2026 Guidance Signals Confidence in AI, Healthcare, and Automation Expansion
Looking to fiscal 2026, Jabil is projecting revenue to reach approximately $31.3 billion, a core operating margin of 5.6%, and core diluted EPS of $11.00. Management also expects adjusted free cash flow to exceed $1.3 billion. This outlook is anchored by expected tailwinds from ongoing investments in AI data center infrastructure, healthcare technologies, and advanced automation solutions for warehouse and retail. These growth areas are anticipated to help offset volatility in other segments, a testament to Jabil’s adaptable portfolio strategy.
| Fiscal 2026 Outlook | Value |
|---|---|
| Net Revenue | $31.30 billion |
| Core Operating Margin (Non-GAAP) | 5.60% |
| Core Diluted EPS (Non-GAAP) | $11.00 |
| Adjusted Free Cash Flow (Non-GAAP) | $1.30+ billion |
Strong Cash Flow and Capital Allocation Highlight Balance Sheet Strength
Jabil ended FY25 with $1.93 billion in cash and cash equivalents and demonstrated disciplined capital management. Net cash from operating activities totaled $1.64 billion, while significant investments in property, plant, and equipment as well as strategic buybacks underscored a continued focus on strengthening the business and enhancing shareholder returns. Total equity stood at $1.52 billion, despite ongoing portfolio adjustments and share repurchases.
CEO’s Perspective: Execution, Adaptability, and Opportunity
CEO Mike Dastoor highlighted that "Fiscal 2025 was a strong year for Jabil as we grew revenue, delivered solid core margins, increased core diluted EPS, and generated robust free cash flow." He added that AI-driven demand, alongside deliberate portfolio actions, more than offset challenges in some end markets. With its fiscal 2026 guidance, Jabil aims to build on these foundations by targeting growth opportunities in emerging technology segments, signaling continued confidence in its diversified operating model.
Takeaway: Diversified Model Supports Long-Term Value Creation
Jabil’s fiscal 2025 performance and its ambitious 2026 outlook paint the picture of a company leveraging diversification, operational efficiency, and technological tailwinds. For investors and industry observers, Jabil’s forward focus on AI infrastructure, healthcare, and automation may be worth monitoring, as execution in these segments will likely define whether Jabil sustains or accelerates its value creation path in the years ahead.
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