01—Abstract
Summary
Summary of the 8-K filed June 17, 2025. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. reported preliminary, unaudited results for its third fiscal quarter ended May 31, 2025, and raised its fiscal 2025 outlook, according to a press release furnished as Exhibit 99.1 to this Form 8-K.
Third-quarter net revenue was $7.83 billiona, compared with $6.77 billion a year earlier. U.S. GAAP operating income was $403 million, U.S. GAAP diluted earnings per share were $2.03, core operating income (non-GAAP) was $420 million, and core diluted earnings per share (non-GAAP) were $2.55. Management cited strength in cloud, data center infrastructure, and capital equipment, with the Intelligent Infrastructure segment described as a growth engine, offset by softness in EVs, Renewables, and 5G.
The company stated it expects to be tracking toward record core earnings per share. For the fourth quarter of fiscal 2025, Jabil guided to net revenue of $7.1 billion to $7.8 billionb, U.S. GAAP diluted EPS of $1.79 to $2.37, and core diluted EPS of $2.64 to $3.04. For full fiscal 2025, the company outlined net revenue of $29 billion, a core operating margin of 5.4%, core diluted EPS of $9.33, and adjusted free cash flow of $1.2 billion or more.
Through nine months, net cash provided by operating activities was $1.05 billionc, adjusted free cash flow was $813 million, and cash and cash equivalents stood at $1.52 billion at May 31, 2025. Management described its priorities as enhancing core margins, optimizing cash flow, and returning value to shareholders, primarily through share repurchases; nine-month treasury stock purchases totaled $975 million. The release notes that third-quarter results could differ from the preliminary figures as the company finalizes them.
02—Key points
Key Highlights
- Q3 FY2025 net revenue of $7.83 billion, up from $6.77 billion in the prior-year quarter.
- Q3 U.S. GAAP operating income of $403 million and U.S. GAAP diluted EPS of $2.03; core operating income of $420 million and core diluted EPS of $2.55.
- Raised fiscal 2025 outlook: net revenue of $29 billion, core operating margin of 5.4%, core diluted EPS of $9.33, and adjusted free cash flow of $1.2 billion or more.
- Q4 FY2025 guidance: net revenue of $7.1 billion to $7.8 billion and core diluted EPS of $2.64 to $3.04.
- Q3 included a $46 million loss on securities from an impairment of a preferred stock investment, and a $54 million pre-tax gain from post-closing adjustments on the Mobility Business divestiture.
- Nine-month net cash from operating activities of $1.05 billion and adjusted free cash flow of $813 million; cash and equivalents of $1.52 billion at May 31, 2025.
- Nine-month share repurchases of $975 million, with management emphasizing share repurchases as a primary means of returning value to shareholders.
03—Questions
Frequently Asked Questions
How did Jabil perform in the third quarter of fiscal 2025?
Net revenue was $7.83 billion, compared with $6.77 billion a year earlier. U.S. GAAP operating income was $403 million, versus $261 million in the prior-year quarter, and U.S. GAAP diluted EPS was $2.03, versus $1.06. Core diluted EPS (non-GAAP) was $2.55, versus $1.89. The results are described as preliminary and unaudited.
What changed in Jabil's fiscal 2025 outlook?
The release is headlined 'Raises Fiscal 2025 Outlook.' The updated full-year guidance calls for net revenue of $29 billion, a core operating margin of 5.4%, core diluted EPS of $9.33, and adjusted free cash flow of $1.2 billion or more. The filing does not provide the prior outlook figures for comparison.
What end markets drove results and where did management see weakness?
Management cited outperformance across cloud, data center infrastructure, and capital equipment, and said the Intelligent Infrastructure segment is a critical growth engine benefiting from AI-driven demand. It noted softness in EVs, Renewables, and 5G.
What is the company's capital return and cash flow position?
For the nine months ended May 31, 2025, Jabil paid $975 million to acquire treasury stock and $28 million in dividends, and generated net cash from operating activities of $1.05 billion and adjusted free cash flow of $813 million. Cash and cash equivalents were $1.52 billion at May 31, 2025, down from $2.20 billion at August 31, 2024.
Are there any notable one-time items in the quarter?
Yes. The company recorded a $46 million loss on securities from an impairment of an investment in preferred stock. It also recognized a $54 million pre-tax gain from post-closing adjustments related to the divestiture of its Mobility Business. Nine-month restructuring, severance and related charges were $144 million, and hurricane-related business interruption and impairment charges were $10 million.
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