Jabil (JBL) AI Stock Analysis

Company Guidance

For Q1, Jabil anticipates Regulated Industries revenue of approximately $3.5 billion, up about 12% year-over-year; Intelligent Infrastructure revenue of approximately $6.3 billion, up about 63% year-over-year; and Intelligent Devices & Robotics revenue of approximately $1.2 billion, down about 10% year-over-year, with total company revenue in the range of $10.6 billion to $11.4 billion, GAAP operating income in the range of $481 million to $541 million, core operating income in the range of $592 million to $652 million, GAAP diluted earnings per share in the range of $2.78 to $3.18, core diluted earnings per share in the range of $3.80 to $4.20, net interest expense of approximately $95 million, full-year net interest expense in the range of $390 million to $400 million and a core tax rate of 20%; for fiscal 2027, Jabil expects Regulated Industries revenue of approximately $13.6 billion, up about 7%, including approximately $5 billion in automotive and transport revenue, up about 9%, approximately $5.6 billion in healthcare and packaging revenue, up about 6%, and approximately $3 billion in renewable and energy infrastructure revenue, up about 7%, while it expects to manufacture more than 700 million injectors and delivery pens, Intelligent Infrastructure revenue of approximately $25.6 billion, up about 43%, including approximately $4.2 billion in capital equipment revenue, up approximately 40%, approximately $17.5 billion in cloud and data center infrastructure revenue, up approximately 52%, and approximately $3.9 billion in networking and communications revenue, up approximately 15%, with AI-related revenue of approximately $22.1 billion, up 54%, or 50-plus percent year-on-year, and 6 customers in the segment expected to each generate more than $1 billion of revenue; Intelligent Devices & Robotics is expected at approximately $5.3 billion, down about 2%, including approximately $3 billion from Digital Commerce & Robotics, up approximately 11%, and approximately $2.3 billion from Connected Living, down about 15%; total fiscal 2027 revenue is expected to be approximately $44.5 billion, up about 24%, with core operating margin of 6.1%, an improvement of 30 basis points, core diluted earnings per share of $17.55, up about 34%, adjusted free cash flow of approximately $1.6 billion, net capital expenditures in the range of 1.5% to 2% of revenue, and free cash flow conversion above 100% over time, while returning 80% or more of adjusted free cash flow to shareholders over time.