Jabil Beats Fourth-Quarter Outlook and Raises Fiscal 2027 Revenue
Fourth-quarter net revenue reached $10.6 billion, above the $9.2 billion to $10.0 billion range Jabil had set, as the company posted a fiscal 2027 outlook of $44.5 billion.
Jabil Inc. (JBL) closed fiscal 2026 with fourth-quarter net revenue of $10.6 billion, above the $9.2 billion to $10.0 billion range it had issued after the third quarter, and said the quarter exceeded its expectations.
The electronics manufacturing services company reported U.S. GAAP operating income of $602 million and diluted earnings of $3.76 a share, both above the $526 million to $586 million operating-income and $3.24 to $3.64 earnings ranges it had given for the period. Core operating income was $675 million and core diluted earnings were $4.40 a share, versus a $589 million to $649 million core operating-income range and $3.80 to $4.20 core earnings range.
Sequential net revenue increased from $8.8 billion in the third quarter of fiscal 2026. U.S. GAAP operating income rose from $445 million and GAAP diluted earnings from $2.59 a share. Core operating income rose from $504 million and core diluted earnings from $3.16 a share.
Chief Executive Mike Dastoor said the company supported significant growth in AI infrastructure, delivered strong performance across several other end markets and brought critical new capacity online. He said the results reflected progress in moving up the value chain, taking on more of customers’ engineering and manufacturing complexity while maintaining an asset-light model.
For the three months ended August 31, 2026, U.S. GAAP operating margin was 5.7%, versus 4.1% a year earlier. Core operating margin was 6.4%, versus 6.3% a year earlier. GAAP diluted earnings were $3.76 a share, versus $1.99 a year earlier; core diluted earnings were $4.40 a share, versus $3.29 a year earlier.
Restructuring, severance and related charges were $9 million in the fourth quarter, versus $37 million a year earlier. The 2026 charges related to targeted restructuring to optimize cost structure. Loss from the divestiture of businesses was zero, versus $98 million a year earlier, when the company recorded a $97 million pre-tax loss on its Italy operations.
For the fiscal year ended August 31, 2026, net revenue was $36.0 billion, up 21% from $29.8 billion in fiscal 2025. U.S. GAAP operating income was $1.7 billion, versus $1.2 billion a year earlier, and GAAP diluted earnings were $9.75 a share, versus $5.92. Core operating income was $2.1 billion, versus $1.6 billion, and core diluted earnings were $13.09 a share, versus $9.75. U.S. GAAP operating margin was 4.7%, versus 4.0%; core operating margin was 5.8%, versus 5.4%.
Adjusted free cash flow was $1.53 billion in fiscal 2026, versus $1.32 billion in fiscal 2025. Net cash provided by operating activities was $2.00 billion, versus $1.64 billion. Capital expenditures were $628 million, versus $468 million.
After the second quarter, Jabil had raised its fiscal 2026 outlook to $34 billion of revenue, 5.7% core operating margin, $12.25 core earnings a share and $1.3+ billion of adjusted free cash flow. After the third quarter it raised the outlook again, to $35 billion of revenue, 5.8% core operating margin, $12.70 core earnings a share and $1.4+ billion of cash flow. Actual fiscal 2026 results of $36.0 billion of revenue, 5.8% core operating margin, $13.09 core earnings a share and $1.53 billion of adjusted free cash flow exceeded those raised guides.
At August 31, 2026, accounts receivable were $6.51 billion and inventories $7.41 billion, versus $4.04 billion and $4.68 billion at August 31, 2025. Accounts payable were $14.44 billion, versus $7.94 billion. Cash and cash equivalents were $1.74 billion.
For the first quarter of fiscal 2027, Jabil guided net revenue of $10.6 billion to $11.4 billion, U.S. GAAP operating income of $481 million to $541 million, GAAP diluted earnings of $2.78 to $3.18 a share, core operating income of $592 million to $652 million and core diluted earnings of $3.80 to $4.20 a share.
The company issued a fiscal 2027 outlook of $44.5 billion of revenue, up 24%, core operating margin of 6.1%, core diluted earnings of $17.55 a share and adjusted free cash flow of approximately $1.6 billion. Dastoor said the outlook reflects accelerating AI demand complemented by growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation.