US earnings: Jabil beats revenue outlook; Nike sales fall
Micron reported higher quarterly revenue, CarMax accelerated unit sales growth and McCormick's acquisition accounted for most of its reported sales increase.
Jabil exceeded its fiscal fourth-quarter revenue guidance, while Nike reported a 4% year-over-year sales decline in its fiscal first quarter. Profit measures also diverged: FactSet's quarterly GAAP operating margin contracted, while its adjusted diluted earnings per share increased. Those differences made operating results and accounting adjustments central to the week's earnings stories.
Jabil and Micron report higher revenue
Jabil's fiscal fourth-quarter revenue reached $10.6 billion, above its $9.2 billion to $10.0 billion guidance and up from $8.8 billion in the preceding quarter. CEO Mike Dastoor said Jabil supported significant AI infrastructure growth and brought critical capacity online. For the three months ended August 31, GAAP operating margin rose to 5.7% from 4.1% a year earlier; core operating margin increased more modestly, to 6.4% from 6.3%. Restructuring charges and divestiture losses were lower than a year earlier.
Micron's fiscal fourth-quarter revenue, for the period ended September 3, reached $54.23 billion, versus $41.46 billion in the preceding quarter. Micron said AI-driven demand and operational execution positioned it for a record fiscal 2027. Core Data Center revenue rose to $18.00 billion from $11.52 billion. The exception was profitability within Cloud Memory: its operating margin slipped to 76% from 78%, even as consolidated GAAP gross margin increased to 86.8% from 84.6%.
Accenture's fiscal fourth-quarter revenue increased 7% in local currency to $18.68 billion, exceeding its revenue guidance. New bookings totaled $22.17 billion, including $12.77 billion in Managed Services bookings and a 1.4 book-to-bill ratio for that business. Adjusted operating margin increased 20 basis points to 15.1%. Cash generation moved the other way: quarterly free cash flow fell to $2.85 billion from $3.81 billion a year earlier, alongside lower operating cash flow and higher property and equipment additions.
FactSet's revenue for the three months ended August 31 increased 6.3% to $634.7 million. Organic annual subscription value growth eased to 7.0%, from 7.1% as of May 31. GAAP operating margin fell to 24.7% from 29.7% a year earlier, with restructuring and severance charges of $26.9 million versus $0.6 million. GAAP diluted EPS declined 15.4% to $3.41, while adjusted diluted EPS rose 11.6% to $4.52.
Nike's sales decline; CarMax's revenue rises
Nike's fiscal first-quarter revenue fell 4% to $11.2 billion. Nike Direct revenue declined 8%, including a 13% decrease in Nike Brand Digital. Greater China revenue fell 22% on a reported basis, while North America grew 2%. CEO Elliott Hill said the performance business was making measurable progress, with more work remaining in Sportswear, Jordan Brand and Greater China. Gross margin nevertheless expanded 60 basis points to 42.8%. Nike expects its Pace program to deliver approximately $2.5 billion in cumulative savings through fiscal 2031.
CarMax's fiscal second-quarter revenue, for the period ended August 31, rose 19.5% to $7.9 billion. Comparable-store used unit sales increased 13.0%, following a 0.8% decline in the preceding quarter. Higher volume accompanied lower vehicle profit per unit: retail used gross profit per unit fell $111 year over year to $2,105, and wholesale gross profit per unit declined $135 to $858. CarMax Auto Finance income increased 32.1% to $135.6 million; its loan-loss provision decreased $28.8 million to $113.4 million.
Carnival reported record third-quarter revenue of $8.44 billion and adjusted net income of $1.96 billion. CEO Josh Weinstein said accelerating demand and stronger cost discipline drove results ahead of expectations. Constant-currency net yields increased 2.4%, and fuel consumption per available lower berth day improved 3.8%. Fuel expense, however, climbed to $615 million from $451 million a year earlier. Carnival raised its full-year 2026 adjusted net income outlook by more than $150 million to approximately $3.08 billion.
Vail Resorts' fiscal year ended July 31 showed a different travel result. Resort net revenue declined 4.5% to $2.83 billion, which Vail attributed to weather-related reductions in visitation and revenue. Skier visits fell 13.4%, but pass revenue increased 3.9%. Upcoming-season pass sales remained weaker: through September 18, units were down approximately 12% and sales dollars approximately 6% against the year-earlier period through September 19.
McCormick's acquisition expands reported sales
Conagra's fiscal first-quarter net sales fell 1.4% to $2.6 billion. Organic sales declined 1.1%, comprising a positive 1.0% price/mix contribution and a 2.1% volume decrease. Adjusted gross margin contracted 62 basis points to 23.8%. Adjusted net income nevertheless rose 4.3% to $197 million; adjusted SG&A fell 3.7%, while equity-method investment earnings increased 71.8% to $50 million.
McCormick's third-quarter sales increased 17.4%, including a 14.6% acquisition contribution from McCormick de Mexico. Organic growth was 1.9%, with pricing up 2.2% and volume/mix down 0.3%. CEO Brendan Foley said productivity initiatives helped offset rising input and freight costs. Adjusted operating income rose 22% to $359 million, but reported operating income fell to $217 million from $289 million. Special charges included transaction and integration costs and a roughly $43.1 million pepper-project impairment.
Cal-Maine's fiscal first-quarter operating loss widened to $82.2 million from $58.8 million in the preceding quarter. CEO Sherman Miller said an industry supply imbalance continued to pressure conventional egg prices despite healthy underlying demand. Conventional egg sales fell 59.5% year over year, with average selling prices down 59.3%. Specialty Shell Eggs and Prepared Foods remained profitable, reporting segment income of $14.9 million and $7.8 million, respectively.