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1. Company Snapshot

1.a. Company Description

Jabil Inc.provides manufacturing services and solutions worldwide.The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services.


It offers electronics design, production, and product management services.The company provides electronic design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA).It also specializes in the three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various industrial design, mechanism development, and tooling management services.


In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs.Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services.Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services.


It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries.The company was formerly known as Jabil Circuit, Inc.and changed its name to Jabil Inc.


in June 2017.Jabil Inc.was founded in 1966 and is headquartered in Saint Petersburg, Florida.

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1.b. Last Insights on JBL

Jabil Inc.'s recent performance was driven by strong revenue growth, particularly in its Intelligent Infrastructure segment, which surged 54% year-over-year, fueled by AI hardware and data center demand. The company's acquisition of Hanley Energy Group for $725 million is expected to enhance growth. AI-related revenue grew 80% year-over-year in FY2025 and is guided to grow 34.4% in FY2026. Jabil's diverse portfolio and strategic expansion in AI infrastructure have positioned it to capitalize on hyperscale AI demand. Its Q1 2026 earnings report showed $8.3 billion in net revenue, at the high end of guidance.

1.c. Company Highlights

2. Jabil's Q1 FY '26 Earnings: Strong Revenue and Margin Performance

Jabil's first quarter fiscal 2026 revenue was $8.3 billion, at the high end of guidance, with core operating income of $454 million and core operating margin of 5.5%. Core diluted earnings per share was $2.85, at the upper end of guidance, beating analyst estimates of $2.7. Revenue by segment included Regulated Industries at $3.1 billion, up 4% year-over-year, Intelligent Infrastructure at $3.9 billion, ahead of expectations, and Connected Living and Digital Commerce at $1.4 billion. The company generated $323 million in cash flow from operations and $272 million in adjusted free cash flow.

Publication Date: Dec -20

📋 Highlights
  • Q1 Revenue Performance:: Achieved $8.3 billion, core operating income of $454 million (5.5% margin), and $2.85 core EPS, all at or above guidance.
  • Data Center Growth Momentum:: Hyperscaler segment revenue to hit $1 billion (up from $750 million) driven by AI storage and services, with $900 million in new business secured for 2026.
  • Full-Year Guidance Raised:: Revenue up to $32.4 billion, core operating margin of 5.7%, and $11.55 core EPS, with adjusted free cash flow maintained at $1.3 billion.
  • Hanley Acquisition Impact:: Adds $500 million in annual revenue, boosting margins and enabling power/energy management solutions for infrastructure growth.
  • Capital Efficiency:: $323 million cash flow from operations and $272 million adjusted free cash flow in Q1, with CapEx outlook at 1.5%-2% of revenue.

Segment Performance and Outlook

The company has seen a strong pipeline, particularly with its second hyperscaler customer, with revenue expected to reach around $1 billion, up from the previously mentioned $750 million. The growth is driven by AI storage and demand for hyperscaler services. The healthcare business has grown to $5.6 billion, with low single-digit growth expected going forward. The company is actively working on deals to add capabilities, similar to its previous GLP-1 OSD transaction. The acquisition of Hanley will provide accretion on margins and leverage from incremental revenues.

Growth Drivers and Opportunities

The data center business is seeing significant growth, with a strong pipeline driven by demand for AI and hyperscaler services. The company is engaged with customers to address power and heat constraints in data centers, offering design, engineering, and liquid cooling solutions. The company expects its gross margin to remain in the range of 9% to 9.5% for the fiscal year. The growth in data center infrastructure is driven by liquid cooling solutions, with the company feeling that demand is strong and having no concerns on that front.

Valuation and Estimates

With a P/E Ratio of 34.49 and an EV/EBITDA of 14.84, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 11.3%. The company's ROIC of 17.21% and ROE of 51.13% indicate strong profitability. The Free Cash Flow Yield of 5.29% is also attractive. Given the raised full-year revenue guidance and the strong pipeline, the company's valuation multiples may be justified, but investors should closely monitor the execution and growth prospects.

Guidance and Future Expectations

For Q2 FY '26, revenue is expected to be $7.5 billion to $8 billion, with core operating income of $375 million to $435 million and core diluted earnings per share of $2.27 to $2.67. The full-year revenue guidance was raised to $32.4 billion, with core operating margin expected to be 5.7% and core diluted earnings per share of $11.55. The company expects to deliver over $1.3 billion in adjusted free cash flow for the full year, maintaining its previous guidance.

3. NewsRoom

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AGF Management Ltd. Cuts Stock Holdings in Jabil, Inc. $JBL

10:02

Source: defenseworld.net

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Independent Advisor Alliance Buys 5,004 Shares of Jabil, Inc. $JBL

08:25

Source: defenseworld.net

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Mirae Asset Global Investments Co. Ltd. Grows Stock Holdings in Jabil, Inc. $JBL

Feb -02

Source: defenseworld.net

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Arjuna Capital Makes New Investment in Jabil, Inc. $JBL

Feb -02

Source: defenseworld.net

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Truist Financial Corp Increases Stake in Jabil, Inc. $JBL

Feb -02

Source: defenseworld.net

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Bank of New York Mellon Corp Cuts Holdings in Jabil, Inc. $JBL

Jan -31

Source: defenseworld.net

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Jabil (JBL) Suffers a Larger Drop Than the General Market: Key Insights

Jan -31

Source: zacks.com

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Strs Ohio Has $12.71 Million Stock Position in Jabil, Inc. $JBL

Jan -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.14%)

6. Segments

Diversified Manufacturing Services

Expected Growth: 8.97%

Jabil Inc.'s Diversified Manufacturing Services segment growth of 8.97% is driven by increasing demand for electronic manufacturing services, particularly in the 5G and cloud infrastructure markets. Additionally, the company's strategic acquisitions and investments in digital transformation, automation, and supply chain optimization have enhanced its operational efficiency and competitiveness.

Electronics Manufacturing Services

Expected Growth: 9.33%

Jabil's Electronics Manufacturing Services (EMS) segment growth of 9.33% is driven by increasing demand for 5G infrastructure, cloud computing, and IoT devices. Additionally, the company's strategic partnerships, operational efficiencies, and investments in digital technologies such as automation and artificial intelligence are contributing to its growth momentum.

7. Detailed Products

Electronics Manufacturing Services

Jabil's Electronics Manufacturing Services provide a comprehensive range of manufacturing solutions, from design and prototyping to production and distribution.

Diversified Manufacturing Services

Jabil's Diversified Manufacturing Services offer customized manufacturing solutions for industries such as healthcare, industrial, and energy.

After-Market Services

Jabil's After-Market Services provide repair, refurbishment, and recycling solutions for electronic products.

Packaging Services

Jabil's Packaging Services offer customized packaging solutions for industries such as consumer electronics and healthcare.

Optical Communications

Jabil's Optical Communications provide design, manufacturing, and testing services for optical communication components.

Cloud and Connected Devices

Jabil's Cloud and Connected Devices offer design, manufacturing, and testing services for IoT devices and cloud infrastructure.

8. Jabil Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Jabil Inc. operates in a highly competitive industry, and the threat of substitutes is moderate. While there are some substitutes available, they are not a significant threat to Jabil's business.

Bargaining Power Of Customers

Jabil Inc. has a diverse customer base, but some of its largest customers have significant bargaining power. This could lead to pricing pressure and affect Jabil's revenue.

Bargaining Power Of Suppliers

Jabil Inc. has a diverse supplier base, and no single supplier has significant bargaining power. This reduces the risk of supply chain disruptions and pricing pressure.

Threat Of New Entrants

The capital requirements and regulatory hurdles in the electronics manufacturing industry make it difficult for new entrants to enter the market. This reduces the threat of new entrants to Jabil's business.

Intensity Of Rivalry

The electronics manufacturing industry is highly competitive, with many established players competing for market share. This intense rivalry could lead to pricing pressure and affect Jabil's revenue.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.12%
Debt Cost 9.59%
Equity Weight 46.88%
Equity Cost 11.04%
WACC 10.27%
Leverage 113.33%

11. Quality Control: Jabil Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Teledyne Technologies

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Value: 3.1

Growth: 6.3

Quality: 6.8

Yield: 0.0

Momentum: 7.0

Volatility: 9.3

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OSI Systems

A-Score: 4.9/10

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Jabil

A-Score: 4.8/10

Value: 3.5

Growth: 6.6

Quality: 4.4

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

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Value: 5.5

Growth: 3.7

Quality: 6.4

Yield: 0.0

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Volatility: 7.3

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Badger Meter

A-Score: 4.5/10

Value: 1.2

Growth: 8.0

Quality: 7.2

Yield: 1.0

Momentum: 3.0

Volatility: 6.7

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

244.69$

Current Price

244.69$

Potential

-0.00%

Expected Cash-Flows