Jabil Q3 2025 slides: Revenue jumps 16%, Intelligent Infrastructure surges 51%

Jabil Circuit Inc (NYSE:JBL) shares climbed 5.01% in premarket trading Tuesday after the company’s third-quarter fiscal 2025 presentation revealed substantial revenue growth and improved profitability across key segments. The electronic manufacturing services provider reported $7.83 billion in revenue, representing a 16% year-over-year increase, with particularly strong performance in its Intelligent Infrastructure segment.

Quarterly Performance Highlights

Jabil delivered impressive financial results for the quarter ended May 31, 2025, with core diluted earnings per share reaching $2.55, a 35% increase from $1.89 in the same period last year. U.S. GAAP diluted EPS nearly doubled to $2.03 from $1.06 year-over-year.

The company’s core operating margin held steady at 5.4%, while core operating income grew to $420 million from $350 million in the prior-year period. These results continue the momentum seen in Jabil’s second quarter, when the company also exceeded market expectations.

As shown in the following comprehensive income highlights:

The strong performance was accompanied by robust cash generation, with $406 million in cash from operating activities and adjusted free cash flow of $326 million. The company also continued its shareholder return program with $339 million in share repurchases during the quarter.

Segment Analysis

Jabil’s business is divided into three segments, with Intelligent Infrastructure emerging as the clear growth driver. This segment, which includes cloud and data center infrastructure that supports AI applications, grew an impressive 51% year-over-year and now represents 44% of Jabil’s total revenue.

The segment breakdown reveals the shifting composition of Jabil’s business:

The Regulated Industries segment, which includes healthcare, automotive, and packaging, remained flat year-over-year but maintained the highest core margin at 5.5%. Meanwhile, the Connected Living & Digital Commerce segment experienced a 7% decline but still delivered a solid 5.3% core margin.

A more detailed view of Jabil’s diversified portfolio shows the dramatic growth in Cloud & Data Center Infrastructure, which increased 54% year-over-year to $7.1 billion, and Capital Equipment, up 56% to $2.5 billion. These gains were partially offset by declines in Networking & Communications (-23%) and Connected Living (-14%).

Financial Details

Jabil’s cash flow performance remained strong in the third quarter, with the company generating significant free cash flow while maintaining strategic investments.

The following slide details the company’s cash flow highlights:

Core EBITDA reached $571 million for the quarter, reflecting the company’s improved operational efficiency. The strong cash generation supports Jabil’s capital allocation strategy, which includes both organic investments and shareholder returns.

The company’s global footprint continues to be a strategic advantage, with over 100 facilities strategically positioned worldwide to serve diverse markets and mitigate supply chain risks.

Guidance & Outlook

Looking ahead to the fourth quarter of fiscal 2025, Jabil provided guidance that suggests continued momentum, albeit with some moderation in growth rates. The company expects revenue between $7.1 billion and $7.8 billion, with core diluted EPS ranging from $2.64 to $3.04.

For the full fiscal year 2025, Jabil maintained its guidance of $29 billion in revenue, core operating margin of 5.4%, and core EPS of $9.33. The company also projects free cash flow to exceed $1.2 billion for the year.

This outlook aligns with comments made during the company’s previous earnings call, where CEO Mike Dastor highlighted Jabil’s strategic positioning and the significant growth in AI-related revenue, which was projected to reach $7.5 billion for the fiscal year.

The strong Q3 results and maintained full-year guidance have contributed to investor optimism, with Jabil’s stock approaching new highs. Prior to today’s premarket movement, the stock had already shown strong momentum, with a 52-week range of $95.85 to $182.14. The current premarket price of $189.88 represents a new high for the company.

Jabil’s continued execution across diverse end markets, particularly in AI infrastructure, positions the company well for sustained growth as it approaches the end of its fiscal year 2025 and looks toward 2026.

Full presentation:

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