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Investing.com -- Jabil Inc. reported fourth-quarter adjusted earnings that exceeded analyst expectations, but shares fell more than 5% premarket as investors digested the results and outlook.
The electronics manufacturing services provider posted adjusted earnings per share of $3.29 for the fourth quarter ended August 31, 2025, above the analyst estimate of $2.90. Revenue came in at $8.3 billion, surpassing the consensus estimate of $7.55 billion.
Despite the strong quarterly performance and positive guidance, Jabil’s stock declined following the announcement. The company provided first quarter fiscal 2026 guidance above analyst expectations, projecting adjusted earnings of $2.47 to $2.87 per share on revenue between $7.7 billion and $8.3 billion. The midpoint of this guidance exceeds the analyst consensus of $2.40 for EPS and $7.5 billion for revenue.
"Fiscal 2025 was a strong year for Jabil as we grew revenue, delivered solid core margins, increased core diluted EPS, and generated robust free cash flow," said CEO Mike Dastoor. "Strength in AI-driven demand across capital equipment, data centers, and networking, combined with deliberate portfolio actions in Connected Living & Digital Commerce, more than offset pressures in Automotive and Renewables, highlighting the resilience of our diversified business model."
For the full fiscal year 2026, Jabil expects revenue of approximately $31.3 billion, core operating margin of 5.6%, adjusted earnings of $11.00 per share, and adjusted free cash flow exceeding $1.3 billion.
The company noted that its fourth quarter performance was driven by strong demand in AI-related sectors, which helped counterbalance challenges in its automotive and renewables segments. Jabil’s diversified business model demonstrated resilience in what the company described as a dynamic operating environment.