JBL · Jabil Inc.

Jabil Inc. reported robust Q2 FY2026 results, with revenue reaching $8.3 billion, up 23.1% from $6.7 billion in the prior year quarter. This growth occurred across the company's three reporting segments—Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce—which are organized based on economic profiles including manufacturing capabilities, market strategy, margins, return on capital, and risk profiles. The topline acceleration reflects strong execution in global manufacturing production sites that enable customers to produce simultaneously in optimal locations.

Profitability metrics showed significant improvement. Gross profit increased 29.5% to $746 million, expanding the gross margin to 9.0% from the prior period. This expansion stems from favorable product mix within the higher revenue base. Operating income surged 52.7% to $374 million, achieving a 4.5% operating margin, supported by cost discipline. The company continued implementation of the 2025 Restructuring Plan, which includes headcount reductions across Selling, General and Administrative (SG&A) functions and manufacturing cost base, alongside capacity realignment. These actions contributed to enhanced operational efficiency. Net income more than doubled, rising 90.6% to $223 million, with diluted EPS climbing 96.2% to $2.08, partly due to lower restructuring charges compared to the prior year.

Balance sheet and cash flow dynamics improved meaningfully. Days in inventory decreased from the prior year, primarily driven by higher consumption of inventory to support sales during the quarter and improved working capital management. This efficiency, combined with an increase in days in accounts payable due to higher purchases of customer-controlled consignment components and timing of cash payments, bolstered liquidity. Net cash provided by operating activities rose to $734 million from $646 million, after which capital expenditures of $198 million (down from $213 million) generated $536 million in free cash flow. These trends underscore Jabil's cash generation capabilities, funding ongoing operations and strategic initiatives.