Fourth quarter and fiscal year 2026
Filed Sep 30, 2026Jabil Posts Fourth Quarter and Fiscal Year 2026 Results Provides Strong Fiscal 2027 Outlook
Fiscal year 2026 net revenue grew 21%, core operating margin expanded 40 basis points, adjusted free cash flow was $ 1,532 (in millions), and fiscal 2027 outlook calls for $44.5 billion of net revenue, 6.1% core operating margin and $17.55 per diluted share of core diluted earnings.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter net revenueGAAP | $10.62B | – | – |
| Fourth quarter cost of revenueGAAP | 9.62B | – | – |
| Fourth quarter gross profitGAAP | 1.00B | – | – |
| Fourth quarter operating incomeGAAP | $602M | – | – |
| Fourth quarter operating marginGAAP | 5.7 % | – | – |
| Fourth quarter core operating incomenon-GAAP | $675M | – | – |
| Fourth quarter core operating marginnon-GAAP | 6.4 % | – | – |
| Fourth quarter income before income taxGAAP | 522M | – | – |
| Fourth quarter income tax expenseGAAP | 125M | – | – |
| Fourth quarter net incomeGAAP | 397M | – | – |
| Fourth quarter net income attributable to Jabil Inc.GAAP | $398M | – | – |
| Fourth quarter diluted earnings per shareGAAP | $ 3.76 | – | – |
| Fourth quarter diluted core earnings per sharenon-GAAP | $ 4.40 | – | – |
| Fourth quarter core earningsnon-GAAP | $466M | – | – |
| Fourth quarter diluted weighted average shares outstandingGAAP | 106M | – | – |
| Fiscal year net revenueGAAP | $35.95B | – | 21% |
| Fiscal year cost of revenueGAAP | 32.64B | – | – |
| Fiscal year gross profitGAAP | 3.32B | – | – |
| Fiscal year operating incomeGAAP | $1.70B | – | – |
| Fiscal year operating marginGAAP | 4.7 % | – | – |
| Fiscal year core operating incomenon-GAAP | $2.07B | – | – |
| Fiscal year core operating marginnon-GAAP | 5.8 % | – | expanded core operating margin 40 basis points |
| Fiscal year net incomeGAAP | 1.04B | – | – |
| Fiscal year net income attributable to Jabil Inc.GAAP | $1.04B | – | – |
| Fiscal year diluted earnings per shareGAAP | $ 9.75 | – | – |
| Fiscal year diluted core earnings per sharenon-GAAP | $ 13.09 | – | – |
| Fiscal year core earningsnon-GAAP | $1.40B | – | – |
| Fiscal year diluted weighted average shares outstandingGAAP | 106.9M | – | – |
| Fiscal year net cash provided by operating activitiesGAAP | $2.00B | – | – |
| Fiscal year adjusted free cash flownon-GAAP | $1.53B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
First Quarter of Fiscal Year 2027; Fiscal Year 2027 outlook
- RevenueFirst Quarter of Fiscal Year 2027: $10.6 billion to $11.4 billion; Fiscal Year 2027: $44.5 billion
- NoteFirst Quarter of Fiscal Year 2027 U.S. GAAP operating income: $481 million to $541 million
- NoteFirst Quarter of Fiscal Year 2027 U.S. GAAP diluted earnings per share: $2.78 to $3.18 per diluted share
- NoteFirst Quarter of Fiscal Year 2027 core operating income (Non-GAAP): $592 million to $652 million
- NoteFirst Quarter of Fiscal Year 2027 core diluted earnings per share (Non-GAAP): $3.80 to $4.20 per diluted share
- NoteFirst Quarter anticipated adjustments: $24 million for amortization of intangibles, $62 million for stock-based compensation expense and related charges, and $25 million for restructuring, severance and related charges
- NoteFiscal Year 2027 core operating margin (Non-GAAP): 6.1%
- NoteFiscal Year 2027 core diluted earnings per share (Non-GAAP): $17.55 per diluted share
- NoteFiscal Year 2027 adjusted free cash flow (Non-GAAP): ~$1.6 billion
- NoteFiscal Year 2027 core diluted earnings per share growth: 34%
- NoteFiscal Year 2027 core operating margin expansion: 30 basis points to 6.1%
Capital returns
- Payments to acquire treasury stock: $ 1,060 (in millions) for the fiscal year ended August 31, 2026, compared with $ 1,000 (in millions) for the fiscal year ended August 31, 2025.
- Dividends paid to stockholders: $ 35 (in millions) for the fiscal year ended August 31, 2026, compared with $ 36 (in millions) for the fiscal year ended August 31, 2025.
What drove it
- Management cited significant growth in AI infrastructure and strong performance across several other end markets.
- The fiscal 2027 outlook cites accelerating AI demand, solid growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation.
- Management cited expanding customer relationships, committed business supporting new capacity, and demand for engineering, supply chain and manufacturing needs.
- Fourth-quarter core operating income adjustments included amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, net periodic benefit cost, and acquisition and divestiture related charges.
Concerns
- The company reported $ 2,394 (in millions) of accounts receivable change, $ 2,681 (in millions) of inventories change, and $ 2,538 (in millions) of prepaid expenses and other current assets change within fiscal 2026 operating cash flow.
- Fiscal 2026 cash paid for business and intangible asset acquisitions, net of cash was $ 852 (in millions), compared with $ 392 (in millions) in fiscal 2025.
- The release states results are preliminary and unaudited and could differ as Jabil finalizes its fourth-quarter and full-year financial results.
- Risk factors cited include managing rapid changes in customer demand, dependence on a limited number of customers, component purchasing and supplier concentration, capital expenditures, international operations and geopolitical uncertainties.
What to watch
- First-quarter fiscal 2027 net revenue guidance of $10.6 billion to $11.4 billion.
- First-quarter fiscal 2027 core operating income guidance of $592 million to $652 million and core diluted earnings per share guidance of $3.80 to $4.20 per diluted share.
- Fiscal 2027 targets for $44.5 billion of net revenue, 6.1% core operating margin, $17.55 per diluted share of core diluted earnings, and ~$1.6 billion of adjusted free cash flow.
- Execution on new capacity and management's cited committed business, particularly amid accelerating AI demand and growth across other named end markets.
- Working-capital movements in accounts receivable, inventories and prepaid expenses and other current assets.
Balance sheet and cash flow
- Cash and cash equivalents: $ 1,739 (in millions) as of August 31, 2026, compared with $ 1,933 (in millions) as of August 31, 2025.
- Current installments of notes payable and long-term debt: $ 499 (in millions) as of August 31, 2026, compared with $ 499 (in millions) as of August 31, 2025.
- Notes payable and long-term debt, less current installments: $ 2,880 (in millions) as of August 31, 2026, compared with $ 2,386 (in millions) as of August 31, 2025.
- Accounts receivable, net: 6,513 (in millions) as of August 31, 2026, compared with 4,039 (in millions) as of August 31, 2025.
- Contract assets: 1,296 (in millions) as of August 31, 2026, compared with 1,057 (in millions) as of August 31, 2025.
- Inventories, net: 7,413 (in millions) as of August 31, 2026, compared with 4,681 (in millions) as of August 31, 2025.
- Acquisition of property, plant and equipment: $ 628 (in millions) for the fiscal year ended August 31, 2026, compared with $ 468 (in millions) for the fiscal year ended August 31, 2025.
- Proceeds and advances from sale of property, plant and equipment: 158 (in millions) for the fiscal year ended August 31, 2026, compared with 146 (in millions) for the fiscal year ended August 31, 2025.
- Cash paid for business and intangible asset acquisitions, net of cash: $ 852 (in millions) for the fiscal year ended August 31, 2026, compared with $ 392 (in millions) for the fiscal year ended August 31, 2025.
Analysis
Jabil closed fiscal 2026 with fourth-quarter net revenue of $ 10,616 (in millions), compared with $ 8,252 (in millions) in the prior-year quarter. Fourth-quarter U.S. GAAP operating income was $ 602 (in millions), core operating income was $ 675 (in millions), and diluted earnings per share were $ 3.76 under U.S. GAAP and $ 4.40 on a non-GAAP basis. Fourth-quarter U.S. GAAP operating margin was 5.7 %, while core operating margin was 6.4 %.
For fiscal 2026, net revenue was $ 35,954 (in millions), and management said revenue grew 21%. U.S. GAAP operating income was $ 1,704 (in millions) and core operating income was $ 2,069 (in millions). U.S. GAAP operating margin was 4.7 %, compared with 4.0 %, while core operating margin was 5.8 %, compared with 5.4 %; management characterized this as 40 basis points of core operating-margin expansion. Fiscal-year diluted U.S. GAAP earnings per share were $ 9.75 and diluted core earnings per share were $ 13.09.
Cash generation was supported by $ 2,002 (in millions) of net cash provided by operating activities and $ 1,532 (in millions) of adjusted free cash flow. The company deployed $ 628 (in millions) for acquisition of property, plant and equipment, $ 852 (in millions) for business and intangible asset acquisitions, $ 1,060 (in millions) to acquire treasury stock, and $ 35 (in millions) in dividends. Cash and cash equivalents were $ 1,739 (in millions), while notes payable and long-term debt, less current installments, were $ 2,880 (in millions). Accounts receivable, inventories, and prepaid expenses and other current assets were all higher at August 31, 2026 than at August 31, 2025.
Management attributed performance to AI infrastructure growth, other end markets, and new capacity. The fiscal 2027 outlook calls for $44.5 billion of net revenue, 6.1% core operating margin, $17.55 per diluted share of core diluted earnings, and approximately $1.6 billion of adjusted free cash flow. First-quarter fiscal 2027 guidance calls for $10.6 billion to $11.4 billion of net revenue, U.S. GAAP operating income of $481 million to $541 million, core operating income of $592 million to $652 million, U.S. GAAP diluted earnings per share of $2.78 to $3.18 per diluted share, and core diluted earnings per share of $3.80 to $4.20 per diluted share.
Management, verbatim
We delivered a fourth quarter that exceeded our expectations, closing an exceptional fiscal 2026 in which we grew revenue 21%, expanded core operating margin 40 basis points and generated more than $1.5 billion in adjusted free cash flow.
Mike Dastoor, CEO
Our fiscal 2027 outlook reflects the strength of Jabil’s diversified portfolio, with accelerating AI demand complemented by solid growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation.
Mike Dastoor, CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for fourth-quarter and fiscal-year operating metrics were not provided.
- Quarterly operating cash flow and quarterly adjusted free cash flow were not provided.
- Segment revenue, segment profitability, and segment comparisons were not provided.
- A U.S. GAAP gross-margin line was not provided.
- A reported tax-rate line was not provided.
- First-quarter fiscal 2027 gross-margin, operating-expense, and tax-rate guidance were not provided.
- Fiscal 2027 U.S. GAAP operating-income and U.S. GAAP diluted-earnings-per-share guidance were not provided.
- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.