01—Abstract
Summary
Summary of the 10-Q filed January 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. (JBL) reported net revenue of $8.31 billiona for the three months ended November 30, 2025, up from $6.99 billion a year earlier.
Gross profit rose to $742 millionb from $606 million, and operating income increased to $283 million from $197 million. Net income attributable to Jabil Inc. was $146 million, or $1.35 per diluted share, compared with $100 million, or $0.88 per diluted share, in the prior-year quarter. The filing reports core (non-GAAP) earnings of $309 million and diluted core earnings per share of $2.85, versus $2.00 a year earlier.
The effective income tax rate rose to 33.6% from 28.0%. Intelligent Infrastructure net revenue increased 54% and now represents 46% of net revenue, while Connected Living and Digital Commerce declined 11%. Cash and cash equivalents fell to $1.57 billionc from $1.93 billion at August 31, 2025, as the company used cash for debt payments, share repurchases of $300 million, and the Rebound Technologies acquisition.
Operating cash flow was $323 milliond. Total debt was $2.89 billion in notes payable and long-term debt, and the company reported $4.0 billion in available unused revolving credit capacity. Accounts payable rose to $8.42 billion from $7.94 billion, and total equity was $1.35 billion.
The company completed the acquisition of Hanley Energy Group on January 2, 2026, for cash consideration of $751 million, and it entered into additional accelerated share repurchase agreements totaling $200 million in December 2025. Management stated that the 2025 Restructuring Plan, which totaled approximately $200 million in pre-tax costs, was substantially complete as of November 30, 2025.
Restructuring, severance and related charges were $76 million in the quarter. Management also expects net capital expenditures for fiscal 2026 to be 1.5% to 2.0% of net revenue, and it describes the company as in compliance with its debt covenants.
02—Key points
Key Highlights
- Net revenue rose to $8.31 billion from $6.99 billion, an increase of 18.7%, driven by Intelligent Infrastructure growth of 54%.
- Diluted EPS was $1.35 versus $0.88 a year earlier; diluted core EPS (non-GAAP) was $2.85 versus $2.00.
- Gross margin was 8.9% of net revenue, up from 8.7%, primarily due to product mix in Regulated Industries.
- Cash and cash equivalents declined to $1.57 billion, with operating cash flow of $323 million and adjusted free cash flow (non-GAAP) of $272 million.
- The company completed the Hanley Energy Group acquisition on January 2, 2026, for $751 million in cash, which serves the data center infrastructure market.
- Share repurchases of $300 million were made in the quarter, and the 2026 Share Repurchase Program had $400 million remaining as of January 2, 2026.
- The effective income tax rate increased to 33.6% from 28.0%, and the company had $4.0 billion of unused revolving credit capacity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Jabil kept $0.02.
- Revenue$8.30B100.0%
- Cost of revenue−$7.56B91.1%
- Gross profit$742.0M8.9%
- Operating costs−$459.0M5.5%
- Operating income$283.0M3.4%
- Interest, other & tax−$137.0M1.6%
- Net income$146.0M1.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed January 9, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $8.30B$6.99B | +18.7% |
| Cost of Revenue | $7.56B$6.39B | +18.4% |
| Gross Profit | $742.00M$606.00M | +22.4% |
| R&D Expenses | $7.00M$8.00M | −12.5% |
| SG&A Expenses | $344.00M$305.00M | +12.8% |
| Operating Income | $283.00M$197.00M | +43.7% |
| Net Income | $146.00M$100.00M | +46.0% |
| EPS (Basic) | $1.37$0.89 | +53.9% |
| EPS (Diluted) | $1.35$0.88 | +53.4% |
| Shares Outstanding (Basic) | 107.00M112.70M | −5.1% |
| Shares Outstanding (Diluted) | 108.30M114.00M | −5.0% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the quarter?
The Intelligent Infrastructure segment's net revenue increased 54%, primarily from a 48% increase in revenues from existing customers in its cloud and data center infrastructure business and a 6% increase in its capital equipment business. Regulated Industries grew 4%, while Connected Living and Digital Commerce declined 11%.
How did the company's earnings change year over year?
Net income attributable to Jabil Inc. was $146 million, compared with $100 million a year earlier. Diluted EPS was $1.35 versus $0.88, and operating income increased to $283 million from $197 million. The effective tax rate was 33.6%, up from 28.0%.
What acquisitions and capital returns did the company make?
The company completed the acquisition of Hanley Energy Group on January 2, 2026, for $751 million in cash, which includes approximately $31 million of cash acquired. It repurchased $300 million of stock in the quarter and entered into ASR agreements for $200 million in December 2025. As of January 2, 2026, $400 million remained under the 2026 Share Repurchase Program.
How is the company's liquidity position?
Cash and cash equivalents were $1.57 billion as of November 30, 2025, down from $1.93 billion at August 31, 2025. The company reported $4.0 billion in available unused revolving credit capacity, and it stated it was in compliance with its debt covenants. Notes payable and long-term debt totaled $2.89 billion.
What is the outlook for capital spending and restructuring?
For fiscal 2026, the company anticipates net capital expenditures of 1.5% to 2.0% of net revenue. The 2025 Restructuring Plan, totaling approximately $200 million, was substantially complete as of November 30, 2025, and the company recorded $76 million of restructuring, severance and related charges in the quarter.
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