Financial Performance Overview

Jabil Inc. is one of the leading providers of worldwide manufacturing services and solutions. The company provides comprehensive electronics design, production, and product management services to companies in various industries and end markets.

In the fiscal year ended August 31, 2025, Jabil reported net revenue of $29.8 billion, an increase of 3.2% compared to the prior year. This growth was driven by a 34% increase in revenue from the Intelligent Infrastructure segment, which includes customers in the capital equipment, cloud and data center infrastructure, and networking and communications industries. However, this was partially offset by a 25% decrease in revenue from the Connected Living and Digital Commerce segment and a 3% decrease in the Regulated Industries segment.

Gross profit for the fiscal year was $2.6 billion, with a gross margin of 8.9%. This represented a slight decrease from the prior year’s gross margin of 9.3%, primarily due to product mix changes in the Connected Living and Digital Commerce and Intelligent Infrastructure segments.

Operating income for the year was $1.2 billion, down from $2.0 billion in the prior year. This decrease was driven by higher restructuring, severance and related charges of $181 million, compared to $296 million in the prior year. The company also recorded a $53 million loss from the divestiture of its operations in Italy, compared to a $942 million gain from the divestiture of the Mobility Business in the prior year.

Net income attributable to Jabil Inc. was $657 million, or $5.92 per diluted share, compared to $1.4 billion, or $11.17 per diluted share, in the prior year. The decrease was primarily due to the lower operating income and a higher effective tax rate of 26.4%, compared to 20.7% in the prior year.

Segment Performance

Jabil has three reporting segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.

The Regulated Industries segment, which includes the automotive and transportation, healthcare and packaging, and renewable energy infrastructure industries, saw a 3% decrease in revenue. This was driven by a 2% decline in the automotive and transportation business and a 1% decline in the healthcare and packaging business.

The Intelligent Infrastructure segment, which includes the capital equipment, cloud and data center infrastructure, and networking and communications industries, saw a 34% increase in revenue. This was primarily due to a 30% increase in the cloud and data center infrastructure business and a 10% increase in the capital equipment business, partially offset by a 6% decrease in the networking and communications business.

The Connected Living and Digital Commerce segment, which includes the connected living and digital commerce industries, saw a 25% decrease in revenue. This was driven by a 27% decline in the connected living business, partially offset by a 2% increase in the digital commerce business.

Key Performance Indicators

Jabil monitors several key performance indicators to assess its operating results and liquidity. These include:

• Sales cycle: The sales cycle, which measures how quickly the company can convert its manufacturing services into cash, improved from 34 days in the prior year to 18 days in the current year. This was driven by decreases in days in accounts receivable and days in inventory.

• Inventory turns: Inventory turns remained constant at 5 turns on an annualized basis.

• Days in accounts receivable: Days in accounts receivable decreased from 46 days to 44 days, primarily due to the timing of collections.

• Days in inventory: Days in inventory decreased from 76 days to 69 days, driven by higher consumption of inventory to support sales and improved working capital management.

• Days in accounts payable: Days in accounts payable increased from 88 days to 96 days, primarily due to higher purchases of customer-controlled consignment components and the timing of cash payments.

These metrics indicate that Jabil is effectively managing its working capital and cash conversion cycle.

Critical Accounting Policies

Jabil’s critical accounting policies include:

• Revenue Recognition: The company recognizes revenue over time based on costs incurred relative to total estimated costs, which it believes best depicts the transfer of control to the customer.

• Inventory Valuation: Jabil records inventory at the lower of cost and net realizable value, regularly assessing inventory based on current and forecasted usage, customer obligations, and other factors.

• Long-Lived Assets: The company reviews intangible assets, including goodwill, for impairment annually and whenever events indicate the carrying value may not be recoverable. Goodwill impairment is measured by comparing the reporting unit’s carrying amount to its fair value.

• Income Taxes: Jabil estimates its income tax provision and the realizability of deferred tax assets, establishing valuation allowances where necessary based on forecasted taxable income.

Recent Accounting Pronouncements

Jabil has adopted the latest accounting guidance, which did not have a material impact on its consolidated financial statements.

Acquisitions and Divestitures

In fiscal year 2025, Jabil completed the acquisitions of Pharmaceutics International, Inc. and Mikros Technologies LLC to enhance its Regulated Industries and Intelligent Infrastructure service offerings, respectively. The company also divested its operations in Italy, recording a $97 million pre-tax loss.

In fiscal year 2024, Jabil divested its Mobility Business, recording a $942 million pre-tax gain.

Liquidity and Capital Resources

Jabil believes its liquidity sources, including cash on hand, available borrowings, and cash flows from operations, will be adequate to fund its capital expenditures, dividends, share repurchases, and working capital requirements for the next 12 months and beyond.

As of August 31, 2025, the company had $1.9 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries. Jabil has $4.0 billion in available unused borrowing capacity under its revolving credit facilities, including a $3.2 billion facility entered into in June 2025.

The company also has a global asset-backed securitization program, under which it can sell up to $700 million in receivables, and various uncommitted trade accounts receivable sale programs, through which it sold $11.4 billion in receivables during the fiscal year.

Jabil’s capital expenditures are expected to be in the range of 1.5% to 2.0% of net revenue for fiscal year 2026, supporting ongoing maintenance and investments in capabilities and targeted end markets.

Dividends and Share Repurchases

Jabil currently expects to continue declaring and paying regular quarterly dividends in amounts similar to its past declarations, subject to the discretion of its Board of Directors. The company has paid a total of $504 million in dividends over the past 10 fiscal years.

Jabil also repurchases shares of its common stock under various share repurchase programs authorized by its Board of Directors. Over the past 10 fiscal years, the company has repurchased $6.6 billion worth of its shares. In fiscal year 2025, Jabil repurchased $1.0 billion of its common stock, and as of October 10, 2025, had $865 million remaining under its current $1.0 billion share repurchase authorization.

Outlook

Jabil’s financial performance in fiscal year 2025 was mixed, with revenue growth in its Intelligent Infrastructure segment offset by declines in its other segments. The company’s profitability was impacted by higher restructuring and divestiture-related charges, as well as a higher effective tax rate.

Going forward, Jabil will need to continue diversifying its revenue streams and optimizing its cost structure to drive consistent profitability. The company’s recent acquisitions in the Regulated Industries and Intelligent Infrastructure segments could help expand its capabilities and customer base in these growing end markets.

Jabil’s strong liquidity position and access to capital should provide the flexibility to fund strategic investments, return capital to shareholders, and weather any potential economic headwinds. However, the company will need to carefully manage its working capital, capital expenditures, and portfolio of businesses to maintain its competitive edge in the evolving manufacturing services landscape.