Jabil Inc. (NYSE: JBL) reported strong financial results for the third quarter of fiscal year 2025, exceeding revenue forecasts and raising its outlook for the year ahead. The company’s diversified business and growth in key sectors supported its robust performance.
Q3 FY2025 Financial Highlights
Jabil posted net revenue of $7.828 billion for Q3, beating the expected $6.97 billion. Its U.S. GAAP diluted earnings per share (EPS) were $2.03, slightly below the forecasted $2.28. However, the company’s core diluted EPS (Non-GAAP) reached $2.55, surpassing estimates and reflecting strong underlying profitability.
CEO Mike Dastoor highlighted growth in cloud and data center infrastructure as key drivers. The Intelligent Infrastructure segment, fueled by rising demand for AI-related products, grew significantly. Despite softness in electric vehicles and renewables, Jabil’s broad portfolio helped maintain solid core earnings.
Compared to Q3 of the previous year, revenue rose from $6.765 billion and GAAP diluted EPS improved from $1.06, showing notable year-over-year growth and operational efficiency.
Raised Outlook for Q4 and Fiscal Year 2025
Jabil now expects fourth-quarter net revenue between $7.1 billion and $7.8 billion. It projects U.S. GAAP operating income of $331 million to $411 million and core operating income (Non-GAAP) of $428 million to $488 million. Core diluted EPS guidance is $2.64 to $3.04.
For the full fiscal year, Jabil forecasts net revenue around $29 billion, a core operating margin of 5.4%, and core diluted EPS of $9.33. The company anticipates adjusted free cash flow exceeding $1.2 billion. These targets reflect Jabil’s focus on improving margins, optimizing cash flow, and enhancing shareholder value through share buybacks and strategic investments.
Jabil’s outlook considers risks such as demand shifts, supply chain challenges, and geopolitical issues but remains confident in delivering strong financial results.
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