Jabil announced on September 30 that its fiscal fourth-quarter revenue for the period ended August 31 reached $10.6 billion, with core diluted earnings per share of $4.40, both exceeding market expectations.

The company forecasts fiscal 2027 revenue of $44.5 billion, representing 24% year-over-year growth, with core earnings per share rising 34% to $17.55.

Among this, AI-related revenue is expected to grow 54%, becoming the largest source of growth in the new fiscal year.

Fourth Quarter Beats Expectations, Intelligent Infrastructure Revenue Grows 56%

Jabil provides engineering design, supply chain management, and manufacturing services to customers, covering sectors including data centers, automotive, healthcare, energy, and automation.

Fourth-quarter revenue grew approximately 29% year over year, with core earnings per share rising about 34%.

The market had previously expected revenue of approximately $9.62 billion and core earnings per share of $4.06.

The company's core operating profit for the quarter was $675 million, with GAAP operating profit of $602 million and earnings per share of $3.76.

The intelligent infrastructure business was the primary growth driver, with quarterly revenue growing 56% year over year to approximately $5.8 billion, accounting for 55% of company revenue, with a core operating margin of 6.5%.

Management stated that AI demand exceeded prior expectations, while newly added capacity came online ahead of schedule and customer project ramp-ups progressed better than planned, enabling the company to take on more orders.

Revenue from regulated industries business for the quarter was approximately $3.4 billion, up 9% year over year.

Performance in the automotive and transportation, renewable energy, and energy infrastructure businesses offset the impact of some project delays in the healthcare and packaging businesses.

AI-Related Revenue Expected to Grow 54%, Expanding Systems Integration Business

Jabil's fiscal 2026 revenue was $36 billion, up 21% year over year, with core earnings per share of $13.09.

The company expects AI-related revenue to increase from $14.4 billion to $22.1 billion in fiscal 2027, an increase of approximately $7.7 billion.

Jabil's scope of business in AI infrastructure includes server and rack manufacturing, as well as power supply, liquid cooling, network connectivity, and related services.

The company stated that customer demand for high-density systems is increasing the complexity of power distribution, thermal management, and systems integration.

Management expects cloud and data center infrastructure revenue of approximately $17.5 billion in fiscal 2027, up 52% year over year, with overall intelligent infrastructure segment revenue of approximately $25.6 billion, up 43% year over year.

CEO Mike Dastoor stated that beyond AI demand, automotive, healthcare, energy infrastructure, defense aerospace, and warehouse and retail automation will also support growth in the new fiscal year.

The company's newly added capacity is already backed by customer business commitments.

Full-Year Margin Expected to Improve, Earnings More Concentrated in Second Half

Jabil expects a core operating margin of 6.1% in fiscal 2027, up 0.3 percentage points from 5.8% in fiscal 2026, with adjusted free cash flow of approximately $1.6 billion.

First-quarter revenue guidance is $10.6 billion to $11.4 billion, with core earnings per share of $3.80 to $4.20.

At the midpoint of guidance, core earnings per share would be $4, below the just-reported fourth-quarter figure of $4.40.

Dastoor explained that newly added capacity requires expenses for training, production ramp-up, and yield improvement in the initial stages of operation, so profitability and earnings in the new fiscal year will be more concentrated in the second half.

The company expects approximately 45% of full-year revenue from the first half and 55% from the second half.

Jabil's fiscal 2027 guidance exceeds market expectations of $42.8 billion in revenue and $16.87 in adjusted earnings per share.

However, during trading on September 30, the company's stock price fell by approximately 10% at one point.

Expanding Capacity While Maintaining Shareholder Returns

Jabil invested $628 million in plant, equipment, and other assets in fiscal 2026, up from $468 million in the prior fiscal year; spending on business and intangible asset acquisitions was $852 million, more than double the previous year's level.

The company generated approximately $2 billion in operating cash flow for the full year and spent approximately $1.06 billion on stock buybacks.

Management stated that the long-term capital allocation framework remains to return at least 80% of adjusted free cash flow to shareholders while preserving investment capacity for business growth.

Jabil has begun executing the new $1.5 billion buyback program approved by the board in July, with approximately $1.4 billion remaining under authorization as of the end of the fiscal year.