Surging Artificial Intelligence Demand
Jabil forecasts $44.5 billion fiscal year revenue on surging artificial intelligence demand.
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Key Points
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Jabil forecast a fiscal 2027 non-GAAP core operating margin of 6.1%, alongside its revenue and EPS outlook.
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Beyond Intelligent Infrastructure, Regulated Industries accounted for 32% of quarterly revenue, grew 9% year over year and recorded a 5.8% core margin. Connected Living and Digital Commerce revenue was flat, with a 7.1% core margin.
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Jabil’s fourth-quarter GAAP net income rose to $398 million from $218 million a year earlier, and diluted GAAP EPS increased to $3.76 from $1.99.
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CEO Mike Dastoor said the fiscal 2027 outlook also reflected growth across automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation.
Jabil reported fiscal 2026 fourth-quarter revenue of $10.6 billion, up 29% year over year, and beat profit expectations with core diluted earnings per share of $4.40 TipRanks. The electronics manufacturer forecast fiscal 2027 revenue of $44.5 billion and core EPS of $17.55, both ahead of Wall Street estimates, driven by surging demand for AI data-center systems. Despite the strong beat and forward guidance, Jabil shares fell about 2% in premarket trading.
For full-year fiscal 2026, Jabil's revenue rose 21% to $35.95 billion, and core EPS increased 34% to $13.09 GuruFocus. The company's Intelligent Infrastructure segment—which includes AI servers and rack systems—posted revenue up 56% and accounted for 55% of quarterly sales. CEO Mike Dastoor said growth was supported by AI demand plus solid gains in automotive, healthcare, energy infrastructure, defense, aerospace, and warehouse automation CommunicationsToday.
Intelligent Infrastructure Segment Accelerates on AI Boom
Jabil's Intelligent Infrastructure segment was the earnings star, with revenue climbing 56% year over year Pulse2. The segment generated roughly 55% of fourth-quarter revenue and posted a 6.5% core margin. Executive Vice President Matt Crowley said AI infrastructure demand "remains strong and continues to accelerate," noting that Jabil exited fiscal 2026 with four customers generating more than $1 billion annually in AI-related revenue Pulse2.
For fiscal 2027, Jabil projects $22.1 billion in AI-related revenue, a 54% increase from the prior year. The company is making specialized capacity investments across Southeast Asia, the United States, Mexico, and India to serve hyperscaler customers building out data centers. TipRanks
Regulated Industries and Other Segments Show Steady Growth
Beyond AI, Jabil's Regulated Industries segment—which serves healthcare, energy, and defense sectors—generated 32% of quarterly revenue and grew 9% year over year with a 5.8% core margin. Connected Living and Digital Commerce revenue was flat compared to the prior year but posted a healthy 7.1% core margin GuruFocus. These segments provide a diversified revenue base outside the AI infrastructure boom.
Stock Falls Despite Beat-and-Raise, Margin Concerns Emerge
Jabil delivered a double beat—top and bottom line—and raised full-year guidance, yet shares fell about 2% before market open and continued sliding during regular trading. Investors cited concerns over margin expansion. For fiscal 2027, Jabil forecast a core operating margin of 6.1%, just 30 basis points higher than fiscal 2026 TipRanks. Adjusted free cash flow is projected near $1.6 billion, roughly flat versus the prior year, as capital spending and inventory scaling weigh on cash generation.
Management countered that Jabil is shifting upmarket, taking on more complex engineering and manufacturing work for cloud and data-center customers while maintaining an asset-light model. Dastoor emphasized that the company "delivered a fourth quarter that exceeded our expectations, closing an exceptional fiscal 2026." Core return on invested capital nearly tripled to 59% since fiscal 2020, signaling improving capital efficiency Pulse2.
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