01—Abstract
Summary
Summary of the 10-Q filed June 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. reported net revenue of $7.83 billiona for the three months ended May 31, 2025, up from $6.77 billion a year earlier, while nine-month net revenue was $21.55 billion versus $21.92 billion in the prior-year period.
Net income attributable to Jabil Inc. was $222 millionb for the quarter (diluted EPS $2.03, compared with $1.06) and $439 million for the nine months (diluted EPS $3.94, compared with $9.86, a period that included a $944 million divestiture gain). Gross profit was $681 million for the quarter, and the filing notes gross margin declined to 8.7% from 9.0%, primarily due to product mix in the Connected Living and Digital Commerce segment. Intelligent Infrastructure drove growth, with segment net revenue up 51% for the quarter, led by cloud and data center infrastructure.
Balance sheet and cash flow: Cash and cash equivalents were $1.52 billionc at May 31, 2025, and notes payable and long-term debt totaled $2.88 billion. Net cash provided by operating activities was $1.05 billion for the nine months, while treasury stock purchases totaled $975 million in cash paid. The company repurchased 6.5 million shares under its 2025 program for $975 million, with $25 million remaining.
On June 18, 2025, Jabil entered into a five-year, $3.2 billiond senior unsecured revolving credit facility, which replaced the Existing Credit Facility. Other items: The quarter included a $46 million loss on securities from impairment of an investment in preferred stock, a $45 million gain from divestiture-related post-closing adjustments, and restructuring charges of $144 million for the nine months under the 2025 Restructuring Plan, which is expected to total approximately $200 million in pre-tax costs for fiscal 2025. The company also signed a binding agreement on June 2, 2025 to acquire Rebound Technologies, subject to regulatory clearance.
02—Key points
Key Highlights
- Net revenue of $7.83 billion for the quarter ended May 31, 2025, up from $6.77 billion; nine-month revenue of $21.55 billion versus $21.92 billion.
- Quarterly net income attributable to Jabil Inc. of $222 million (diluted EPS $2.03), compared with $129 million (diluted EPS $1.06) a year earlier.
- Gross profit as a percentage of net revenue was 8.7% for the quarter versus 9.0%, attributed to product mix in Connected Living and Digital Commerce.
- Intelligent Infrastructure segment revenue rose 51% in the quarter, driven by cloud and data center infrastructure and capital equipment.
- Share repurchases totaled $975 million cash utilized under the 2025 program (6.5 million shares), with $25 million remaining authorization.
- A new $3.2 billion five-year senior unsecured revolving credit facility was entered into on June 18, 2025, replacing the Existing Credit Facility.
- A $46 million loss on securities reflects an impairment of a preferred stock investment, and the 2025 Restructuring Plan is expected to cost approximately $200 million in pre-tax charges in fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Jabil kept $0.03.
- Revenue$7.83B100.0%
- Cost of revenue−$7.15B91.3%
- Gross profit$681.0M8.7%
- Operating costs−$278.0M3.6%
- Operating income$403.0M5.1%
- Interest, other & tax−$181.0M2.3%
- Net income$222.0M2.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed June 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $7.83B$6.76B | +15.7% |
| Cost of Revenue | $7.15B$6.16B | +16.1% |
| Gross Profit | $681.00M$608.00M | +12.0% |
| R&D Expenses | $7.00M$9.00M | −22.2% |
| SG&A Expenses | $274.00M$268.00M | +2.2% |
| Operating Income | $403.00M$261.00M | +54.4% |
| Net Income | $222.00M$129.00M | +72.1% |
| EPS (Basic) | $2.05$1.08 | +89.8% |
| EPS (Diluted) | $2.03$1.06 | +91.5% |
| Shares Outstanding (Basic) | 108.00M119.90M | −9.9% |
| Shares Outstanding (Diluted) | 109.30M121.70M | −10.2% |
05—Questions
Frequently Asked Questions
How did Jabil perform in the third quarter of fiscal 2025?
Net revenue was $7.83 billion, up from $6.77 billion, and net income attributable to Jabil Inc. was $222 million, or $2.03 diluted EPS, compared with $129 million, or $1.06 diluted EPS, a year earlier. Operating income was $403 million versus $261 million.
Why did gross margin decline?
The filing states that gross profit as a percentage of net revenue decreased to 8.7% for the quarter from 9.0%, primarily due to product mix in the Connected Living and Digital Commerce segment.
What are the main growth drivers and risks mentioned?
Intelligent Infrastructure segment revenue increased 51% in the quarter, led by a 40% increase in cloud and data center infrastructure revenue from existing customers. The filing also cites tariffs, which the company expects to pass on to customers, and notes that if it cannot fully pass on these costs, operating results and cash flows could be adversely affected.
How is Jabil managing its capital and liquidity?
Cash and cash equivalents were $1.52 billion at May 31, 2025. Net cash from operations was $1.05 billion for the nine months, and the company repurchased $975 million of stock under its 2025 program. It also entered a $3.2 billion revolving credit facility on June 18, 2025, and was in compliance with its debt covenants.
What acquisitions and divestitures affected the period?
Jabil completed the acquisition of Pharmaceutics International, Inc. for $309 million in February 2025 and Mikros Technologies LLC for $63 million in October 2024. On June 2, 2025, it signed a binding agreement to acquire Rebound Technologies, subject to regulatory clearance. A $54 million pre-tax gain from post-closing adjustments on the Mobility Business divestiture was recognized in the quarter.
06—Continue