Jabil Q4 FY2025 presentation: Revenue jumps 18%, Intelligent Infrastructure surges 62%

Jabil Circuit Inc. (NYSE:JBL) released its fourth quarter and fiscal year 2025 financial results on September 25, 2025, reporting strong performance with significant growth in its Intelligent Infrastructure segment. The company’s stock opened at $227 in premarket trading, up 0.76% following the presentation.

Quarterly Performance Highlights

Jabil delivered impressive fourth quarter results, with net revenue reaching $8.25 billion, an 18% increase year-over-year from $6.96 billion in Q4 FY2024. Core operating income (non-GAAP) rose to $519 million, up from $401 million in the same period last year, while core earnings per share jumped to $3.29, a substantial improvement from $2.30 in Q4 FY2024.

As shown in the following detailed income highlights table:

The company’s segment performance revealed divergent trends, with Intelligent Infrastructure leading growth at 62% year-over-year, Regulated Industries increasing by 3%, and Connected Living & Digital Commerce declining by 14%. Overall, Jabil maintained a healthy core margin of 6.3% for the quarter.

The following chart illustrates the segment breakdown for Q4 FY2025:

Jabil’s cash flow performance remained strong, with the company generating $588 million in cash from operations during the fourth quarter. After accounting for capital expenditures, adjusted free cash flow reached $505 million for Q4 and $1.32 billion for the full fiscal year.

The company’s cashflow highlights are detailed in this table:

Full-Year FY2025 Results

For the full fiscal year 2025, Jabil reported net revenue of $29.8 billion, up from $28.9 billion in FY2024. Core operating income reached $1.62 billion with a core operating margin of 5.4%, while core earnings per share grew to $9.75, compared to $8.49 in the previous year.

The company’s multi-year financial performance shows consistent improvement in core operating income, core EPS, and free cash flow:

Jabil CEO Mike Dastoor highlighted the company’s achievements in FY2025: "We delivered strong financial performance with robust AI growth and maintained a resilient portfolio." The company reported a core return on invested capital of 54% for the fiscal year.

The following summary captures Jabil’s key fiscal 2025 metrics:

Outlook and Guidance

Looking ahead to the first quarter of fiscal year 2026, Jabil provided guidance for net revenue between $7.7 billion and $8.3 billion, with core operating income expected to range from $400 million to $460 million. Core diluted earnings per share is projected to be between $2.47 and $2.87.

The detailed Q1 FY2026 guidance is presented here:

For the full fiscal year 2026, Jabil expects to achieve:

• Net revenue of $31.3 billion
• Core operating margin of 5.6%
• Core EPS of $11.00
• Free cash flow of over $1.3 billion

This outlook reflects continued confidence in the company’s growth trajectory, particularly in AI-related markets, which aligns with the previous quarter’s earnings call where CEO Dastoor noted, "Demand for AI hardware is not slowing down. If anything, it’s accelerating."

Strategic Initiatives

Jabil has been strategically shifting its geographic footprint, with revenue from the Americas increasing from 25% in FY2018 to 46% in FY2025, while Asia’s contribution decreased from 64% to 41% during the same period. This rebalancing reflects the company’s focus on regionalized manufacturing and multi-regional supply chains for enhanced resilience and agility.

The following map illustrates this geographic evolution:

The company maintains a diversified portfolio across three segments and nine end markets, with long-term partnerships with major companies including Amazon, Apple, Ford, HP, and others. This diversification strategy has helped Jabil build resilience against market fluctuations.

Jabil’s global supply chain capabilities serve as a core differentiator, with the company managing:

• 38,000+ global suppliers
• 40,000+ SKUs
• 700,000+ parts
• $25 billion+ in global spend

These capabilities are supported by 3,000 procurement and supply chain experts, 3,000 buyers, and 1,500 planners worldwide.

Long-Term Financial Targets

Jabil outlined ambitious long-term financial targets, including:

• Revenue growth of 5-7%
• Gross profit margins of 9-10%
• Core operating margins of 6%+
• Core earnings per share growth of 12-15%
• Free cash flow conversion of 100%+
• Core return on invested capital of 30%+
• Capital returned to shareholders of 80%

The company’s capital allocation framework prioritizes three areas: organic investment in AI infrastructure, healthcare, and advanced warehouse & retail automation; strategic acquisitions to enter higher-value markets; and shareholder returns, with a commitment to return 80% of capital to investors.

In summary, Jabil’s fourth quarter and fiscal year 2025 presentation demonstrated strong financial performance, particularly in the high-growth Intelligent Infrastructure segment. With a clear strategy for geographic diversification, portfolio management, and capital allocation, the company has positioned itself for continued growth in fiscal year 2026, targeting $31.3 billion in revenue and $11.00 in core earnings per share.

Full presentation:

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