Jabil delivered a robust second quarter (fiscal 2026) with revenue of $8.282 billion and a core operating margin of 5.3%, driven predominantly by Intelligent Infrastructure (II), which posted a 52% year-over-year increase to about $4.0 billion. Management attributed the strength to broad-based demand in cloud and data center infrastructure, networking and communications, and accelerating capacity in capital equipment. GAAP earnings per share (EPS) came in at $2.08, while core diluted EPS was $2.69, underscoring meaningful margin discipline amid strong top-line growth. JBL affirmed its multi-year strategy of profitable growth through disciplined mix, margin expansion, and sustained cash generation, and raised full-year guidance for revenue to roughly $34 billion and core EPS to $12.25, with adjusted free cash flow (FCF) >$1.3 billion.
Management emphasized that AI-related revenue is accelerating, with AI-driven revenue expected to reach approximately $13.1 billion for fiscal 2026, a ~46% year-over-year increase. The company also signaled continued strength in Regulated Industries and ongoing, albeit more modest, improvement in Connected Living & Digital Commerce as robotics and automation initiatives scale. Free cash flow remains robust, enabling capital returns via buybacks (Q2 buybacks of $300 million) and disciplined balance-sheet management. Looking ahead, JBL expects Q3 revenue of $8.1–$8.9 billion and core operating income of $452–$512 million, with full-year 2026 guidance remaining anchored by a ~5.7% core operating margin and >$1.3 billion in adjusted FCF. While the outlook is positive, JBL notes macro volatility and supply constraints as the key macro tailwinds/headwinds to monitor, along with the need to sustain margin progression toward a 6% goal for FY2027.