JBL US S&P 500Russell 1000 Earnings call · transcribed from the recording
Jabil (JBL) · Q3 2026 results and valuation
Share price: $258.89 · 2026-11-11
Jabil provides engineering, manufacturing, and supply chain solutions for companies in industries such as automotive, healthcare, and infrastructure. The company offers design, production, and product management services across the entire product lifecycle. It operates production facilities in multiple countries, including China, Malaysia, Mexico, and the United States. Source: 10-K annual report (2025-10-17)
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q4 2026 · published 30 Sep 2026 and 17 Jun 2026
Net income up 44.7% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+44.7%
Net income vs Q2 2026
Outlook given
Net income 398.0M vs 275.0M
Revenue +21.3%
Against the same quarter last year (Q3 2025) it is +82.6%, so it is not just seasonal.
Why Against the same quarter last year (+82.6%), net income rose because the company expanded its core operating margin by 40 basis points, driven by an improving mix, including the contribution of the Hanley Energy acquisition and disciplined portfolio management.
2 · How management spoke
Typical
More upbeat than 52% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Jabil expects AI-related revenue to grow over 50 percent year-on-year with five customers having revenue above $1 billion.
Valuation
Is Jabil undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-08-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −3.8% growth a year (3-year revenue growth), the model's fair value is $86.52 a share — the stock trades 199% above it. Today's price assumes 10.3% growth a year.
Current price
$258.89
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.3% for 10 yrs
Fair value / share
$86.52
Buy below
$64.89
Price vs fair value
Overvalued 199%
Price vs buy-below price
Overvalued >200%
Management expects
Revenue +43% · from the Q3 2026 report: “Intelligent Infrastructure revenue is expected to grow 43% year-over-year with all three end markets growing double digits.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Adjusted free cash flow reached $541 million for the quarter and over $1.5 billion for the year, exceeding the initial FY '26 outlook of $1.3 billion plus.
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Guidance
Intelligent Infrastructure revenue reached approximately $5.8 billion, up 56% year-over-year and roughly $900 million above the June outlook.
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Guidance
Intelligent Infrastructure revenue is expected to grow 43% year-over-year with all three end markets growing double digits.
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Guidance
JBL expects AI-related revenue to grow over 50 percent year-on-year with five customers having revenue above $1 billion.
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Guidance
Cloud and data center infrastructure revenue is expected to reach approximately $17.5 billion, up approximately 52% as invested capacity ramps.
4 more
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Guidance
JBL expects fiscal 2027 revenue of approximately $44.5 billion, which is up about 24% across all three segments.
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Guidance
JBL expects a core operating margin of 6.1%, an improvement of 30 basis points, and core diluted earnings per share of $17.55, up about 34%.
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Figure
When you put all of this diversified growth together, Jabil is anticipating adding in excess of $8.5 billion of revenue in fiscal '27 after having added over $6 billion in fiscal '26.
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Guidance
JBL expects to manufacture more than 700 million injectors and delivery pens in fiscal 2027 to illustrate the scale of the opportunity.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“So when I step back, I'm confident in where Jabil sits today, strong customer demand across multiple end markets, committed business filling the capacity we've invested in, a model that...”
“Capital equipment revenue grew about 20% in fiscal '26, and we expect fiscal '27 to be an even stronger year with growth of 40% as the wafer fab equipment cycle...”
“First, AI-related demand remained very strong and continued to accelerate, exceeding the significant growth we had already incorporated in our June outlook.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-08-31)
| Metric | Q3 2026period end 2026-08-31 | Q2 2026period end 2026-05-31 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 10.62B | 8.75B | +21.3% | 8.25B | +28.6% |
| Gross profit | 1.00B | 828.0M | +20.9% | 783.0M | +27.8% |
| Operating income | 602.0M | 445.0M | +35.3% | 337.0M | +78.6% |
| Net income | 398.0M | 275.0M | +44.7% | 218.0M | +82.6% |
| EPS | 3.74 | 2.59 | +44.4% | 1.98 | +88.9% |
| P/E today 24.5 | 31.3 | 45.6 | −14.3 | 34.6 | −3.3 |
Topics
Most discussed now
- Fading Core operating income was $675 million, representing a core operating margin of 6.4%.
- Fading Cloud and data center infrastructure is Jabil's largest end market.
- Fading GAAP operating income was $602 million or 5.7% of revenue.
- Jabil exited fiscal 2026 with a strong balance sheet with debt to core EBITDA of 1.3x and cash balances of...
- Jabil will then move to Steve Borges, who will cover its Regulated Industries segment, including automotive and transportation, healthcare…
Faded since Q2 2026
- Fading Intelligent Infrastructure revenue was $4.2 billion, up 21% year-over-year, reflecting continued strong demand and performance in line with…
- Fading For the third quarter, revenue was approximately $8.8 billion, up 12%...
- Fading Starting with the segments, Jabil expects Regulated Industries revenue of approximately $3.3...
- Fading As Jabil looks from Q3 into Q4, it expects another meaningful step-up in revenue across all three end markets, supported...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Jabil reported fiscal year 2026 net revenue of $36.0 billion, which represents an increase of 21% compared to the previous year.
- Results of operations · SEC 8-K
Jabil reported net revenue of $8.8 billion and U.S. GAAP diluted earnings per share of $2.59 for the third quarter of fiscal year 2026.
- Other events · SEC 8-K
The Board rejected the conditional resignations of directors John Plant and Tiger Tyagarajan, who both attended more than 75% of the meetings during fiscal year 2026.
- Results of operations · SEC 8-K
Jabil reported net revenue of $8.3 billion and U.S. GAAP diluted earnings per share of $2.08 for the second quarter of fiscal year 2026.
- Director or officer change · SEC 8-K
Jabil Inc. appointed Steve Raymund as Chairman of the Board, and added Thomas T. Edman and Raejeanne Skillern to the Board of Directors on January 22, 2026.
- Shareholder vote results · SEC 8-K · routine
- Material agreement; Other events · SEC 8-K
Jabil Inc. issued $500 million of 4.200% Senior Notes due 2029 and $500 million of 4.750% Senior Notes due 2033 in an underwritten public offering on January 23, 2026.
- Results of operations · SEC 8-K
Jabil reported net revenue of $8.3 billion and U.S. GAAP diluted earnings per share of $1.35 for the first quarter of fiscal year 2026.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-28.
Cash & runway
Cash & equivalents
$1.74B
2026-08-31
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.5% YoY, -0.7% QoQ.
| Quarter | Shares |
|---|---|
| Q4 2024 | 112.7M |
| Q1 2025 | 110.0M |
| Q2 2025 | 108.0M |
| Q4 2025 | 107.0M |
| Q1 2026 | 106.0M |
| Q2 2026 | 105.3M |
Shares outstanding: 103.0M (2026-10-20)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 93 filings; 50 filings parsed.
Sold by insiders
36.6K shares
$11.1M · 27 transactions
Bought by insiders
500 shares
$149.8K · 1 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fiscal '27
revenue growth
Source quote
“In fact, when you put all of this diversified growth together, we're anticipating adding in excess of $8.5 billion of revenue in fiscal '27 after having added over $6 billion in fiscal '26.”
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fiscal '27
revenue growth
Source quote
“First, we're positioned for growth in fiscal '27.”
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move through fiscal 2027
return to target inventory range
Source quote
“While net inventory days remain above our target range of 55 to 60 days, we expect continued improvement and a return to that range as we move through fiscal 2027.”
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Q1
Regulated Industries revenue
Source quote
“For Q1, we anticipate Regulated Industries revenue of approximately $3.5 billion, up about 12% year-over-year.”
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Q1
total company revenue
Source quote
“Putting it all together at the enterprise level, total company revenue for Q1 is expected to be in the range of $10.6 billion to $11.4 billion.”