The manufacturer projected 24% revenue growth and a 34% jump in core earnings for fiscal 2027. Its first-quarter earnings guide sits below the quarter it just reported, and its margin outlook is lower.
Jabil beat every forecast on Wednesday and still had one of the worst days among large U.S. companies.
The contract manufacturer reported fiscal fourth-quarter revenue of $10.6 billion for the three months ended Aug. 31, against estimates near $9.69 billion. Core earnings, which exclude certain items, came to $4.40 a share, against estimates near $4.06, a beat of about 8%. GAAP earnings were $3.76 a share.
The fiscal 2027 outlook also topped expectations: revenue of $44.5 billion, up 24%, and core earnings of $17.55 a share, up 34% and above the $16.92 consensus.
The shares fell about 10.6% to near $285 in the afternoon. Sanmina, a rival manufacturer with no news of its own, dropped about 5.7%.
The year
Fiscal 2026 revenue reached $36.0 billion, up 21%. Core earnings totaled $13.09 a share, GAAP earnings $9.75, and adjusted free cash flow exceeded $1.5 billion.
"We delivered a fourth quarter that exceeded our expectations," said Chief Executive Mike Dastoor. He said the 2027 outlook "reflects the strength of Jabil's diversified portfolio, with accelerating AI demand complemented by solid growth in automotive, healthcare, energy infrastructure, defense and aerospace, and warehouse and retail automation."
Inside the guidance
Three figures in the outlook read less strongly than the headline growth rates.
The first-quarter forecast calls for revenue of $10.6 billion to $11.4 billion and core earnings of $3.80 to $4.20 a share. The $4.00 midpoint is 40 cents below the $4.40 just reported.
Fourth-quarter core operating income was $675 million, a core operating margin of about 6.4%. For fiscal 2027, Jabil guides that margin to 6.1%.
Adjusted free cash flow is projected at about $1.6 billion in 2027, only modestly above the more than $1.5 billion generated in 2026, even as revenue is set to climb by roughly $8.5 billion.
Two readings
One reading is that the selloff reflects the group more than the report. Sanmina fell more than half as much as Jabil without any news of its own, which points to a sector move rather than a verdict on Jabil's numbers.
The other reading is that investors looked past the beat to the shape of the guidance: growth heavy on revenue and lighter on margin and cash. A 6.1% margin on a far larger revenue base still lifts earnings sharply, but it suggests more of the new business carries thinner margins.
What to watch
Micron's results after Wednesday's close will test sentiment toward AI hardware suppliers. Jabil's next quarterly report will show whether revenue lands in the upper half of its range and how margins track against the 6.1% target.