Jabil Q4 FY2026 Earnings: Revenue Climbs Nearly 29% as GAAP Margin Expands

Jabil (NYSE: JBL) reported Q4 FY2026 net revenue of $10.616 billion, up about 29% from $8.252 billion, while GAAP diluted EPS increased to $3.76 from $1.99 for the quarter ended August 31, 2026. GAAP operating margin expanded to 5.7% from 4.1%, although the smaller increase in core operating margin indicates that lower restructuring and divestiture-related charges amplified reported profit growth. Management identified AI infrastructure as a major FY2026 growth driver and issued an FY2027 outlook calling for further revenue and core earnings growth.

Core Earnings Data

Revenue growth lifted quarterly gross profit by about 28% to $1.001 billion. Gross margin was approximately 9.4%, compared with approximately 9.5% a year earlier, indicating that the higher sales volume did not produce a meaningful increase in gross profitability.

The improvement was more pronounced below gross profit. GAAP operating income rose about 79%, while core operating income increased 30%; the difference largely reflected lower charges excluded from Jabil’s non-GAAP results.

The diluted share count declined to 106.0 million from 109.2 million, providing an additional benefit to per-share earnings growth.

Lower Special Charges Amplified GAAP Profit Growth

The reconciliation between GAAP and core operating income is central to understanding the quarter. Adjustments to operating income fell to $73 million from $182 million, helping GAAP operating margin expand by 1.6 percentage points even as core operating margin moved only slightly higher, to 6.4% from 6.3%.

The prior-year quarter included a $98 million loss from business divestitures, while no comparable loss was recorded this quarter. Restructuring, severance, and related charges also declined to $9 million from $37 million. These decreases more than offset increases in amortization and acquisition-related charges.

Consequently, the 79% increase in GAAP operating income substantially exceeded the 30% increase in core operating income. The core figures still showed higher profit, but the company’s underlying margin expansion on its non-GAAP basis was modest.

Cash Flow and Balance Sheet

Jabil provided cash flow data for the full fiscal year rather than the fourth quarter. FY2026 operating cash flow increased to $2.002 billion from $1.640 billion, while adjusted free cash flow rose about 16% to $1.532 billion from $1.318 billion. Net capital expenditures were $470 million, reflecting $628 million of property and equipment purchases less $158 million of proceeds and advances from asset sales.

Working-capital movements were substantial. Accounts receivable, inventory, and prepaid expenses used $2.394 billion, $2.681 billion, and $2.538 billion of cash, respectively. These outflows were offset by a $7.984 billion cash contribution from accounts payable, accrued expenses, and other liabilities.

At August 31, 2026, cash and equivalents stood at $1.739 billion, down from $1.933 billion a year earlier. Accounts receivable increased to $6.513 billion from $4.039 billion, inventory rose to $7.413 billion from $4.681 billion, and accounts payable reached $14.444 billion versus $7.937 billion. Total current and long-term debt increased to $3.379 billion from $2.885 billion.

Jabil also spent $852 million on business and intangible-asset acquisitions and $1.060 billion on treasury stock during FY2026.

Earnings Guidance

Jabil’s FY2027 outlook calls for revenue of $44.5 billion, representing management’s projected 24% increase from FY2026. The company also expects core operating margin to expand by 30 basis points to 6.1% and core diluted EPS to grow 34% to $17.55. Management tied the outlook to accelerating AI demand and expected growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation.

For Q1 FY2027, the company projected revenue between $10.6 billion and $11.4 billion and provided both GAAP and core profit ranges.

The Q1 core outlook excludes anticipated adjustments of $24 million for intangible-asset amortization, $62 million for stock-based compensation and related charges, and $25 million for restructuring, severance, and related charges.

Recent Insider Transactions

The supplied six-month summary reports five insider purchases totaling 7,780 shares and 15 sales totaling 46,075 shares, resulting in net sales of 38,295 shares. The 10 most recent reported transactions consist of one purchase, seven sales, and two stock awards; all were reported as direct transactions, and the data alone does not establish the insiders’ reasons for trading.

Risks Investors Need to Watch

• Preliminary results: The reported Q4 and FY2026 figures are preliminary and unaudited, meaning they could change as Jabil completes its financial reporting process.
• Execution on rapid growth: The FY2027 outlook depends on continued AI demand, committed customer business, and efficient use of new capacity. Production scheduling or demand changes could affect revenue and margins.
• Working-capital requirements: Receivables and inventory increased materially during FY2026, while operating cash flow benefited significantly from higher payables and other liabilities. The sustainability of that funding balance will be important for future cash conversion.
• GAAP versus core profitability: Jabil expects material stock-compensation, amortization, and restructuring adjustments in Q1 FY2027. Investors should continue evaluating both GAAP results and the company’s core measures rather than relying on either in isolation.

Summary

Jabil’s Q4 FY2026 combined approximately 29% revenue growth with higher GAAP and core earnings, but the sharpest improvement in reported profitability came from lower restructuring and divestiture-related charges rather than broad margin expansion. Full-year cash generation increased despite substantial working-capital movements, and the FY2027 outlook assumes another year of rapid growth led by AI infrastructure and supported by several other end markets. The main items to monitor are core margin delivery, working-capital conversion, and the company’s ability to bring new capacity online efficiently.