Company Overview
Jabil Inc. is a global design, manufacturing, and supply chain services leader founded in 1966 and headquartered in St. Petersburg, Florida. The company partners with customers from concept through manufacturing and lifecycle management across healthcare, automotive, cloud and networking, industrial, and consumer end-markets. Fiscal 2024 revenue was roughly $31 billion as Jabil continued to reshape its mix toward higher-value verticals and away from commoditized consumer devices. The company’s integrated model spans engineering, prototyping, automation, mass production, logistics, and after-market services, creating long customer lifecycles. Core competitors include Foxconn, Flex, and Celestica, with Jabil emphasizing diversification, automation, and supply chain orchestration as its edge.
Most Recent Earnings
On September 24, 2025, Jabil reported fiscal Q4 2025 results with revenue of approximately $8.8 billion and EPS of about $2.60. Revenue declined modestly year over year, reflecting a continued portfolio shift and selective pruning of low-margin programs, while gross margin expanded on mix and productivity. Results were slightly below the Street on revenue but ahead on EPS, underscoring cost discipline and higher-value program ramp-ups. Management guided fiscal Q1 2026 revenue to roughly $8.2–$8.6 billion with EPS of about $2.10–$2.30, and reiterated a focus on healthcare, automotive, industrial, and cloud. Full-year commentary pointed to sustained cash generation and continued capital returns aligned with long-term margin expansion.
Founding and Early History
Jabil’s name derives from co-founders James Golden and William “Bill” Morean, who launched the business in Detroit to assemble printed circuit boards. Through the 1980s and 1990s, Jabil capitalized on the outsourcing wave as OEMs shifted non-core manufacturing to EMS specialists. The company went public in 1993, unlocking capital to scale internationally and broaden capabilities beyond board assembly into full product realization.
Funding and Strategic M&A
Since its IPO, Jabil has primarily relied on public markets and internally generated cash flow to fund growth, complemented by targeted acquisitions. A pivotal deal was the acquisition of Nypro, which accelerated Jabil’s penetration of healthcare and packaging and diversified exposure beyond consumer electronics. Over time, the company has added automation, precision plastics, and regulated manufacturing capabilities to deepen customer relationships in sticky, higher-margin verticals.
Products, Services, and Footprint
Jabil offers design engineering, new product introduction, tooling, precision plastics, electronics manufacturing, systems integration, and logistics, supported by advanced automation and analytics. The company operates more than 100 sites across 30+ countries, enabling “build where you sell” strategies and multi-region redundancy. Its lifecycle services include repairs, parts management, and sustainability solutions that extend product life and reduce total cost of ownership for customers.
Market Context and Growth Outlook
Jabil participates in the global electronics manufacturing services (EMS) and design-to-delivery market, a sector sized in the hundreds of billions of dollars and expanding as more industries outsource sophisticated manufacturing. Growth is fueled by electrification, connectivity, and compute proliferation—from electric vehicles and ADAS to medical devices, industrial automation, and cloud infrastructure. Regionalization trends and supply chain risk management also support distributed manufacturing partners with global scale.
2030 Themes and CAGR
Through 2030, the company’s focus segments—healthcare, automotive, industrial, and cloud—are expected to outgrow legacy consumer hardware. Adoption of EV platforms, battery systems, robotics, IoT, and edge/AI hardware should sustain mid-single- to high-single-digit EMS industry CAGR, with Jabil aiming to compound faster via mix shift and margin expansion. The increasing complexity and regulatory demands in healthcare and automotive favor partners with quality systems, traceability, and validation expertise—areas where Jabil has invested heavily.
Competitive Landscape
Foxconn remains the EMS volume leader, particularly in consumer electronics, while Flex competes broadly across industrial, healthcare, and automotive, and Celestica focuses on select complex builds and hardware platforms. Jabil differentiates by balancing scale with high-mix, regulated, and mission-critical programs, reducing reliance on cyclical consumer categories. Its geographically diverse footprint and automation toolkit enable cost, quality, and speed advantages for customers running global programs.
Unique Differentiation
Jabil’s end-to-end “design to lifecycle” stack, coupled with regulated manufacturing know-how and advanced automation, creates switching costs and multi-year program durability. The company’s supply chain orchestration—vendor management, resiliency planning, and analytics-driven forecasting—adds value beyond the factory floor. This combination supports higher margins than commoditized EMS work and positions Jabil as a strategic partner rather than a transactional contract manufacturer.
Management Team
CEO Kenneth S. Wilson leads the portfolio strategy and operational execution after two decades in senior roles managing global operations and customer programs. CFO Michael Dastoor has been with Jabil since 2000, driving financial discipline, cash generation, and capital allocation, including share repurchases and targeted M&A. Executive Vice President Gerald Creadon oversees global operations, ensuring quality, delivery, and continuous improvement across Jabil’s multi-continent footprint.
Five-Year Financial Performance: Growth and Mix
Over the last five years, Jabil’s revenue trend reflects deliberate mix shift—lower exposure to volatile consumer categories and higher exposure to healthcare, automotive, industrial, and cloud. While headline revenue saw periods of modest contraction associated with divestitures and portfolio pruning, underlying earnings power increased as the company emphasized complex, higher-margin programs. This strategy has translated into EPS growth outpacing revenue growth.
Margin Expansion and Cash Generation
Gross and operating margins improved through productivity, automation, and program mix, advancing from low-single-digit operating margins to solid mid-single digits in recent years—significant for a manufacturing services business. Consistent free cash flow enabled debt reduction, buybacks, and selective M&A while maintaining flexibility to invest in capacity, tooling, and new program ramps. Return on invested capital trended higher, reflecting disciplined capital allocation and better unit economics.
Balance Sheet and Capital Allocation
Jabil maintained a pragmatic balance sheet with manageable leverage, supported by recurring cash flows from long-lived customer programs. The company prioritized share repurchases during periods of valuation dislocation while funding growth in regulated and complex verticals. Management’s framework emphasizes sustainable margin expansion, resilient cash generation, and shareholder returns balanced with investment in automation and regional capacity.
Bull Case
Jabil’s diversified mix into healthcare, automotive, industrial, and cloud supports structurally higher margins and more resilient earnings through cycles. Secular themes—EV adoption, medical device innovation, and cloud/AI hardware proliferation—offer multi-year program visibility and content growth per device. Scale, automation, and lifecycle services create switching costs and deepen strategic relationships, enabling share gains against less diversified EMS peers.
Bear Case
Customer concentration and program timing can create revenue volatility if a large customer re-scopes or insources work. Macro slowdowns or supply chain shocks can pressure volumes and working capital, testing margin resilience despite mix improvements. Competitive pricing or aggressive capacity additions by peers could compress returns if demand softens in key verticals.
The stock is in a stage 2 markup (bullish) on the monthly timeframe, but consolidating stage 3 on the weekly and stage 2 again on the daily chart, with a move to new highs at $230 range. The earnings today makes the move lower more likely to the $200 range. We will wait for a reversal.