Jabil Sees FY2027 Revenue at $44.5 Billion on AI Infrastructure Growth

Jabil Inc. (NYSE: JBL) reported sharply higher fourth-quarter and fiscal 2026 revenue and earnings, led by Intelligent Infrastructure, and projected another year of growth as demand for AI-related data-center systems expands. Management expects fiscal 2027 revenue of $44.5 billion, a 6.1% non-GAAP core operating margin and core diluted earnings per share of $17.55.

Fourth-quarter revenue rose 29% year over year to $10.62 billion for the three months ended Aug. 31, 2026. U.S. GAAP operating income increased to $602 million from $337 million, while GAAP net income advanced to $398 million from $218 million. Diluted GAAP earnings per share reached $3.76, compared with $1.99 a year earlier.

Non-GAAP core operating income was $675 million, up from $519 million, and the core operating margin edged up to 6.4% from 6.3%. Core diluted EPS increased to $4.40 from $3.29.

For the full fiscal year, revenue rose to $35.95 billion from $29.80 billion. GAAP operating income increased to $1.70 billion from $1.18 billion, and GAAP net income reached $1.04 billion, compared with $657 million in fiscal 2025. Full-year diluted GAAP EPS was $9.75, up from $5.92, while non-GAAP core EPS increased to $13.09 from $9.75. The full-year core operating margin expanded to 5.8% from 5.4%.

Intelligent Infrastructure leads growth

Intelligent Infrastructure generated 55% of fourth-quarter revenue and posted 56% year-over-year growth, with a 6.5% core margin. Regulated Industries, representing 32% of quarterly revenue, grew 9% and recorded a 5.8% core margin. Connected Living and Digital Commerce revenue was flat, while its core margin was 7.1%.

Jabil said its fiscal 2026 performance reflected AI-led growth and contributions from all three segments. The company attributed its broader margin gains to a shift toward higher-value markets, including Regulated Industries, Intelligent Infrastructure and Digital Commerce, as well as more engineering-led design, systems integration and full-solution work. Gross margin reached 9.2% in fiscal 2026, compared with 7.1% in fiscal 2020.

Management expects Intelligent Infrastructure revenue to rise 43% in fiscal 2027 to $25.6 billion. Within the segment, Cloud and Data Center Infrastructure revenue is projected to increase 52% to $17.5 billion, Capital Equipment revenue is expected to grow 40% to $4.2 billion, and Networking and Communications revenue is forecast to rise 15% to $3.9 billion. Jabil also expects AI-related revenue to grow 54% during the year.

Regulated Industries revenue is projected to increase 7% to $13.6 billion. The outlook includes 9% growth in Automotive and Transportation, 6% growth in Healthcare and Packaging, and 7% growth in Renewable and Energy Infrastructure. Management said healthcare is expected to return to growth in fiscal 2027 as new programs enter production, while defense, aerospace, energy storage and grid-related projects provide additional opportunities.

Intelligent Devices and Robotics revenue is expected to decline 2% to $5.3 billion. A projected 11% increase in Digital Commerce and Robotics to $3.0 billion is expected to be offset by a 15% decline in Connected Living to $2.3 billion. Jabil cited selective program participation and memory constraints in Connected Living while emphasizing warehouse automation, mobile robotics and autonomous delivery as focus areas.

Cash flow and capital allocation

Jabil generated $2.00 billion of operating cash flow in fiscal 2026 and reported $1.53 billion of adjusted free cash flow after $470 million of net capital expenditures. Fourth-quarter adjusted free cash flow was $541 million. The company repurchased $1.06 billion of shares during the year, including $169 million in the fourth quarter.

At year-end, Jabil had $6.1 billion of liquidity, consisting of $1.7 billion in cash and $4.4 billion of unused borrowing capacity. Balance-sheet debt was $3.4 billion, equivalent to 1.3 times core EBITDA. The company said it remains committed to maintaining its investment-grade credit profile.

A new $1.5 billion share-repurchase authorization was approved in July, and repurchases are underway. Over time, Jabil plans to return more than 80% of adjusted free cash flow to shareholders while continuing to fund organic capacity, capabilities and potential strategic acquisitions.

Fiscal 2027 outlook

For the first quarter of fiscal 2027, Jabil expects revenue of $10.6 billion to $11.4 billion. GAAP operating income is projected at $481 million to $541 million, with diluted GAAP EPS of $2.78 to $3.18. Non-GAAP core operating income is expected to range from $592 million to $652 million, and core diluted EPS is forecast at $3.80 to $4.20.

For the full year, management’s plan calls for $44.5 billion of revenue, a 6.1% core operating margin, core EPS of $17.55 and approximately $1.6 billion of free cash flow. Jabil said new capacity in Southeast Asia, the United States, Mexico and India is beginning to fill with committed customer programs. Its fiscal 2027 operating priorities include preparing for complex production ramps, expanding flexible automation and computer vision, and strengthening supply-chain visibility and alternative sourcing.

Beyond fiscal 2027, management expects continued core-margin expansion as the business mix changes, net capital expenditures of 1.5% to 2.0% of revenue and adjusted free-cash-flow conversion of at least 100%. These expectations depend on factors including AI infrastructure demand, new-capacity ramps, healthcare programs, energy storage, defense spending and the commercial deployment of physical AI.

The outlook remains subject to customer-demand changes, production scheduling and capacity-management challenges, component availability, supplier and customer concentration, geopolitical and currency risks, technology shifts, and the execution of new programs. Inventory days increased to 82 at the end of fiscal 2026 from 69 a year earlier, while net inventory days rose to 64 from 55.