Shares Drop 3% Despite Jabil’s Q2 EPS Beat and Raised $34B Revenue Guidance
Jabil reported Q2 adjusted EPS of $2.69, beating the $2.49 consensus, and revenue of $8.3B versus $7.75B expected, but shares slid over 3% intra-day. The company raised fiscal 2026 adjusted EPS guidance to $12.25 from $11.55 and revenue outlook to $34B from $32.4B while forecasting Q3 EPS of $2.83–3.23 and at least $1.3B in free cash flow.
1. Second-Quarter Financial Results
Jabil reported Q2 adjusted EPS of $2.69, outperforming the $2.49 analyst consensus by $0.20, and delivered revenue of $8.3 billion versus the $7.75 billion estimate. Despite the beat, shares declined more than 3% intra-day.
2. Segment Performance Drivers
Strength in the Intelligent Infrastructure segment fueled growth with robust demand across cloud and data center infrastructure, networking and communications, while the Regulated Industries unit saw improving trends in automotive and renewable energy markets.
3. Guidance for Q3 and Full Year
For Q3, Jabil is projecting adjusted EPS between $2.83 and $3.23 and revenue of $8.1 billion to $8.9 billion. It raised full-year fiscal 2026 guidance to $12.25 EPS and $34 billion revenue, targets a 5.7% core operating margin and plans to generate at least $1.3 billion in free cash flow.