Jabil Inc. (NYSE: JBL) shares declined more than 3% intra-day Wednesday despite the company reporting stronger-than-expected second-quarter results and raising its full-year outlook, supported by solid demand in cloud infrastructure and data center markets.
The electronics manufacturing services provider reported adjusted earnings per share of $2.69 for the second quarter of fiscal 2026, exceeding the analyst consensus of $2.49 by $0.20. Revenue reached $8.3 billion, surpassing the $7.75 billion estimate.
Jabil attributed its performance to strength across its diversified portfolio, particularly within its Intelligent Infrastructure segment, where demand remained robust across cloud and data center infrastructure, networking and communications, and capital equipment.
The company also noted improving trends in its Regulated Industries segment, with better-than-expected performance in automotive and renewable energy markets.
Looking ahead, Jabil expects third-quarter adjusted earnings per share between $2.83 and $3.23, with a midpoint of $3.03. Revenue is projected to range from $8.1 billion to $8.9 billion.
For fiscal 2026, the company raised its adjusted EPS guidance to $12.25 from $11.55, exceeding the analyst consensus estimate of $11.64. Revenue guidance was also increased to $34 billion from $32.4 billion, compared with the $32.6 billion consensus.
Jabil expects a core operating margin of 5.7% and anticipates generating at least $1.3 billion in adjusted free cash flow for the year.
