Jabil shares fall 6.81% despite stronger fiscal 2026 results and outlook

  • Jabil projected fiscal 2027 revenue of $44.5 billion and core earnings of $17.55 per share.
  • AI-related revenue is expected to rise 54% to $22.1 billion in fiscal 2027.
  • Management cited memory constraints, capacity-ramp costs and a 15% Connected Living decline.

Jabil delivered stronger-than-expected fiscal 2026 results and projected fiscal 2027 revenue of $44.5 billion and core earnings of $17.55 per share, but its shares fell 6.81% to $297.13 as investors assessed execution risks, a back-end-loaded margin profile and tightening memory supply. AI-related revenue is expected to grow 54% to $22.1 billion, supported by multiple hyperscaler customers and about 4 million square feet of new capacity. Management expects core operating margin to reach 6.1%, with initial ramp costs and underutilization weighing more heavily on the first half. Jabil forecasts approximately $1.6 billion of free cash flow while keeping net capital spending near 1.5% to 2% of revenue. Growth is expected across automotive, healthcare, defense and energy infrastructure, although Connected Living is projected to decline 15% because of planned exits from lower-margin programs. Management said memory constraints are intensifying as supply is redirected toward AI and hyperscale customers, while regulation currently poses no significant expected impact on fiscal 2027.

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