It has been about a month since the last earnings report for Jabil (JBL). Shares have added about 16.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Jabil due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Jabil, Inc. before we dive into how investors and analysts have reacted as of late.
Jabil Q2 Earnings Beat Estimates on Solid Revenue Growth
Jabil reported strong second-quarter fiscal 2026 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment and healthcare end-markets.
JBL’s Net Income
Net income on a GAAP basis in the quarter was $223 million or $2.08 per share compared with $117 million or $1.06 per share in the prior-year quarter. The improvement is primarily driven by top-line growth.
Non-GAAP net income in the reported quarter was $288 million or $2.69 per share compared with $215 million or $1.94 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $2.54.
JBL’s Revenues
Net sales during the quarter increased to $8.3 billion from $6.72 billion reported in the year-ago quarter. The top line beat the consensus estimate of $7.82 billion. Solid demand in the Intelligent Infrastructure segment boosted the top line.
In the fiscal second quarter, the Regulated Industries segment contributed 36% to revenues. The 10% year-over-year growth is driven by healthy traction in the renewable energy infrastructure, healthcare & packaging end markets.
The Intelligent Infrastructure contributed 49% of total revenues, up 52% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales.
About 15% of the total revenues came from the Connected Living & Digital Commerce segment. The 8% year-over-year decline is due to soft demand for consumer-driven products. Strong growth in the digital commerce market partially reversed this trend.
JBL’s Other Details
Gross profit was $746 million compared with $576 million in the year-ago quarter. Non-GAAP operating income aggregated $436 million, up from $334 million in the year-ago period. Non-GAAP operating margin was 5.3%, up from the year-ago quarter’s figure of 5%.
JBL’s Cash Flow & Liquidity
In the second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. As of Feb. 28, 2026, the company had $1.83 billion in cash and cash equivalents, with $3.37 billion of notes payable and long-term debt. Adjusted free cash flow stands at $360 million.
JBL’s Guidance Up
Management expects AI data center infrastructure, healthcare and advanced warehouse and retail automation to be the major growth drivers in 2026. For fiscal 2026, revenues are now projected at $34 billion, up from the prior estimate of $32.4 billion. Non-GAAP earnings per share are expected to be $12.25, up from the prior estimate of $11.55. The company is expected to generate more than $1.3 billion in adjusted free cash flow.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.16% due to these changes.
VGM Scores
At this time, Jabil has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Jabil has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Jabil, Inc. (JBL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).