Jabil shares fall despite earnings beat and strong guidance

Investing.com -- Jabil Inc. (NYSE: JBL) reported fourth-quarter results that exceeded analyst expectations, but shares are down around 4% premarket on Wednesday.

Adjusted earnings per share of $4.40 beat the consensus estimate of $4.06 by $0.34.

Revenue reached $10.6 billion, surpassing the $9.69 billion analyst estimate and marking a 21% increase YoY from fiscal 2025. The company also provided fiscal 2027 guidance above Wall Street expectations, projecting adjusted EPS of $17.55 compared to the consensus of $16.92, and revenue of $44.5 billion versus the consensus of $42.93 billion.

Despite the strong results and optimistic outlook, shares fell. The company attributed its performance to significant growth in AI infrastructure and strong results across several end markets. "We delivered a fourth quarter that exceeded our expectations, closing an exceptional fiscal 2026 in which we grew revenue 21%, expanded core operating margin 40 basis points and generated more than $1.5 billion in adjusted free cash flow," said CEO Mike Dastoor.

For the first quarter of fiscal 2027, Jabil expects adjusted EPS in the range of $3.80 to $4.20, with a midpoint of $4.00. Revenue is projected between $10.6 billion and $11.4 billion, with a midpoint of $11.0 billion.

The company's fiscal 2027 outlook reflects expected revenue growth of 24% and core operating margin expansion of 30 basis points to 6.1%. Jabil anticipates adjusted free cash flow of approximately $1.6 billion for the year.

Dastoor noted that the outlook reflects "accelerating AI demand complemented by solid growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation."

For fiscal 2026, Jabil reported full-year revenue of $36.0 billion and adjusted EPS of $13.09.

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