Story
Jabil Stock Declines Despite Strong Q4 Earnings Beat and Upbeat Forecast
Summary
Jabil Inc. (NYSE: JBL) reported fourth-quarter results and full-year guidance that surpassed Wall Street expectations, yet its shares fell in premarket trading.
Jabil Inc. (NYSE: JBL) shares fell in premarket trading Wednesday, even after the manufacturing services company posted fourth-quarter earnings and revenue that beat analyst expectations and issued a strong forecast for its 2027 fiscal year.
The company's stock was down approximately 4% in premarket hours, a move that contrasted with the positive financial results and outlook.
Strong Quarterly Performance
For its fourth quarter of fiscal 2026, Jabil reported financial results that exceeded consensus estimates. The company attributed the performance to significant growth in AI infrastructure and solid results across multiple end markets.
- Adjusted Earnings Per Share (EPS): $4.40, beating the consensus estimate of $4.06.
- Revenue: $10.6 billion, surpassing the analyst estimate of $9.69 billion.
According to the report, fourth-quarter revenue marked a 21% increase year-over-year. For the full fiscal year 2026, Jabil delivered revenue of $36.0 billion and adjusted EPS of $13.09.
Ad"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," said CEO Mike Dastoor.
Optimistic Outlook for Fiscal 2027
Jabil also provided guidance for its upcoming fiscal year that was above Wall Street's projections. The company expects total revenue growth of 24% and adjusted free cash flow of approximately $1.6 billion for the year.
- Projected FY2027 Adjusted EPS: $17.55, compared to the consensus of $16.92.
- Projected FY2027 Revenue: $44.5 billion, versus the consensus of $42.93 billion.
For the first quarter of fiscal 2027, Jabil anticipates adjusted EPS between $3.80 and $4.20 on revenue in the range of $10.6 billion to $11.4 billion. Dastoor noted the outlook reflects "accelerating AI demand complemented by solid growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation."
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