Jabil (JBL) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 results exceeded expectations in revenue, core operating margin, and core EPS, driven by broad-based strength in Intelligent Infrastructure and Regulated Industries, with Connected Living & Digital Commerce declining.

• Net revenue for Q2 FY2026 reached $8.3 billion, up 23% year-over-year, with net income attributable to shareholders rising to $223 million and diluted EPS at $2.08; core (non-GAAP) diluted EPS was $2.69.

• Gross profit margin improved to 9.0% from 8.6% year-over-year, reflecting favorable product mix.

• The company completed the acquisitions of Hanley Energy Group and Rebound Technologies, expanding capabilities in data center infrastructure and supply chain services.

• Raised full-year FY2026 outlook for revenue and core EPS, citing confidence in the second half and focus on profitable growth, margin expansion, and strong cash generation.

Financial highlights

• Q2 FY2026 net revenue: $8.3 billion, up from $6.7 billion year-over-year.

• Q2 FY2026 GAAP operating income: $374 million; core operating income (Non-GAAP): $436 million.

• Q2 FY2026 GAAP diluted EPS: $2.08; core diluted EPS (Non-GAAP): $2.69.

• Adjusted free cash flow for Q2 was $360 million; for the six months ended Feb 28, 2026, adjusted free cash flow was $632 million.

• Ended Q2 with $1.8 billion in cash and repurchased $300 million in shares during the quarter.

Outlook and guidance

• Q3 FY2026 net revenue guidance: $8.1–$8.9 billion.

• Q3 FY2026 core operating income (Non-GAAP): $452–$512 million; GAAP operating income: $398–$458 million.

• Q3 FY2026 core diluted EPS (Non-GAAP): $2.83–$3.23; GAAP diluted EPS: $2.36–$2.76.

• FY2026 outlook: net revenue $34 billion, core operating margin 5.7%, core diluted EPS $12.25, adjusted free cash flow over $1.3 billion.

• Capital expenditures for FY2026 expected at ~1% of revenue, increasing to 1.5–2% in FY2027.