Jabil FY2026 slides: AI drives 54% growth outlook despite stock decline
Jabil Inc. (NYSE: JBL) reported its fiscal fourth quarter and full-year 2026 results on September 30, 2026, highlighting robust growth fueled by artificial intelligence (AI) infrastructure and regulated industries. Despite a 6.11% decline in stock price to $296.81, the company exceeded analyst expectations with revenue reaching $10.6 billion (a 29% year-over-year increase) and core earnings per share at $4.40 (a 34% year-over-year increase).
The company's fiscal 2026 performance totaled $36.0 billion in revenue, marking a 21% year-over-year increase, and issued an ambitious forecast of $44.5 billion in revenue for fiscal 2027, indicating a 24% growth projection. The transition from a traditional contract manufacturing model to an engineering-led, asset-light approach has significantly bolstered profitability, with core return on invested capital nearly tripling to 59% since fiscal 2020.
Jabil's strategic initiatives, including core operating income growth of 28% (to $2.069 billion), core operating margin expansion of 40 basis points (to 5.8%), and cash flow generation more than tripling to $1.532 billion, underscore the company's focus on scaling profitably while maintaining capital discipline. The company's diversified segment performance included a 56% year-over-year surge in the Intelligent Infrastructure segment (55% of revenue), a steady 9% increase in Regulated Industries (32% of revenue), and a flat but high-margin performance in Connected Living & Digital Commerce (13% of revenue).
Jabil's financial strength, including $6.1 billion in total liquidity and a debt-to-core-EBITDA ratio of 1.3x, underscores its investment-grade credit standing. The company has returned $8.8 billion to shareholders since 2013, reducing shares outstanding by 49% through share repurchases and dividends. Management has set a target of returning over 80% of adjusted free cash flow to shareholders over time, with a new $1.5 billion share repurchase program authorized in July 2026.
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