Jabil (JBL) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net revenue was $6.73 billion, with core operating margin at 5% and core diluted EPS at $1.94, up $0.26 year-over-year, driven by growth in capital equipment, cloud/data center, and digital commerce.

• GAAP net income for Q2 FY25 was $117 million, down from $927 million in Q2 FY24, reflecting the absence of a prior-year $944 million pre-tax gain from the Mobility Business divestiture.

• Resilient performance amid dynamic macro environment, supported by a diversified portfolio and strategic U.S. manufacturing footprint.

• FY25 outlook raised: revenue expected at $27.9 billion, core operating margin at 5.4%, core EPS at $8.95, and free cash flow above $1.2 billion.

• CEO highlighted adaptability and robust free cash flow despite macroeconomic and geopolitical uncertainties.

Financial highlights

• Q2 FY25 revenue was $6.73 billion, down 0.6% year-over-year; core operating income was $334 million; GAAP operating income was $245 million.

• Core diluted EPS was $1.94; GAAP diluted EPS was $1.06.

• Adjusted free cash flow for Q2 was $261 million; six-month adjusted free cash flow was $487 million.

• Cash and cash equivalents at quarter-end were $1.6 billion.

• Net capital expenditures for Q2 were $73 million; six-month CapEx was $213 million.

Outlook and guidance

• Q3 FY25 revenue expected between $6.7 billion and $7.3 billion; core operating income guidance: $348 million–$408 million; core EPS: $2.08–$2.48.

• FY25 guidance: revenue $27.9 billion, core operating margin 5.4%, core EPS $8.95, free cash flow above $1.2 billion.

• FY25 restructuring plan expects $150 million–$200 million in pre-tax charges, with $100 million–$130 million in net cash outflows over FY25–26.

• Capital expenditures for FY25 anticipated at 1.5%–2.0% of net revenue.

• No material impact expected from global minimum tax changes for FY25.