filings.toolsJabil 10-Q 2026-02-28
Filed 2026-04-08. 8 sections, 199K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended February 28, 2026
or
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-14063
JABIL INC.
(Exact name of registrant as specified in its charter)
| Delaware | 38-1886260 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
10800 Roosevelt Boulevard North, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
(727) 577-9749
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, $0.001 par value per share | JBL | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 1, 2026, there were 105,502,622 shares of the registrant’s Common Stock outstanding.
JABIL INC. AND SUBSIDIARIES INDEX
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except for share data)
| February 28, 2026 (Unaudited) | August 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,830 | $ | 1,933 | |||||||
| Accounts receivable, net of allowance for credit losses | 4,390 | 4,039 | |||||||||
| Contract assets | 1,270 | 1,057 | |||||||||
| Inventories, net of reserve for excess and obsolete inventory | 4,972 | 4,681 | |||||||||
| Prepaid expenses and other current assets | 2,547 | 2,010 | |||||||||
| Total current assets | 15,009 | 13,720 | |||||||||
| Property, plant and equipment, net of accumulated depreciation of $5,071 as of February 28, 2026, and $4,970 as of August 31, 2025 | 2,840 | 2,847 | |||||||||
| Operating lease right-of-use assets | 487 | 462 | |||||||||
| Goodwill | 1,229 | 841 | |||||||||
| Intangible assets, net of accumulated amortization | 648 | 273 | |||||||||
| Deferred income taxes | 147 | 141 | |||||||||
| Other assets | 268 | 259 | |||||||||
| Total assets | $ | 20,628 | $ | 18,543 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current installments of notes payable and long-term debt | $ | 500 | $ | 499 | |||||||
| Accounts payable | 8,517 | 7,937 | |||||||||
| Accrued expenses | 5,695 | 5,185 | |||||||||
| Current operating lease liabilities | 99 | 93 | |||||||||
| Total current liabilities | 14,811 | 13,714 | |||||||||
| Notes payable and long-term debt, less current installments | 3,376 | 2,386 | |||||||||
| Other liabilities | 405 | 345 | |||||||||
| Non-current operating lease liabilities | 414 | 388 | |||||||||
| Income tax liabilities | 131 | 113 | |||||||||
| Deferred income taxes | 142 | 80 | |||||||||
| Total liabilities | 19,279 | 17,026 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Jabil Inc. stockholders’ equity: | |||||||||||
| Preferred stock, $0.001 par value, authorized 10,000,000 shares; no shares issued and no shares outstanding | — | — | |||||||||
| Common stock, $0.001 par value, authorized 500,000,000 shares; 279,404,569 and 278,092,060 shares issued and 105,818,234 and 107,480,895 shares outstanding as of February 28, 2026 and August 31, 2025, respectively | — | — | |||||||||
| Additional paid-in capital | 3,149 | 3,047 | |||||||||
| Retained earnings | 6,733 | 6,382 | |||||||||
| Accumulated other comprehensive loss | — | (17) | |||||||||
| Treasury stock at cost, 173,586,335 and 170,611,165 shares as of February 28, 2026 and August 31, 2025, respectively | (8,538) | (7,899) | |||||||||
| Total Jabil Inc. stockholders’ equity | 1,344 | 1,513 | |||||||||
| Noncontrolling interests | 5 | 4 | |||||||||
| Total equity | 1,349 | 1,517 | |||||||||
| Total liabilities and equity | $ | 20,628 | $ | 18,543 |
See accompanying notes to Condensed Consolidated Financial Statements.
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for per share data)
(Unaudited)
| Three months ended | Six months ended | ||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | ||||||||||||||||||||
| Net revenue | $ | 8,282 | $ | 6,728 | $ | 16,587 | $ | 13,722 | |||||||||||||||
| Cost of revenue | 7,536 | 6,152 | 15,099 | 12,540 | |||||||||||||||||||
| Gross profit | 746 | 576 | 1,488 | 1,182 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 329 | 256 | 673 | 561 | |||||||||||||||||||
| Research and development | 7 | 7 | 14 | 15 | |||||||||||||||||||
| Amortization of intangibles | 23 | 15 | 42 | 28 | |||||||||||||||||||
| Restructuring, severance and related charges | 5 | 45 | 81 | 128 | |||||||||||||||||||
| Loss from the divestiture of businesses | 2 | — | — | — | |||||||||||||||||||
| Acquisition and divestiture related charges | 6 | 8 | 21 | 8 | |||||||||||||||||||
| Operating income | 374 | 245 | 657 | 442 | |||||||||||||||||||
| Other expense | 31 | 24 | 60 | 44 | |||||||||||||||||||
| Interest expense, net | 43 | 37 | 77 | 75 | |||||||||||||||||||
| Income before income tax | 300 | 184 | 520 | 323 | |||||||||||||||||||
| Income tax expense | 78 | 67 | 152 | 106 | |||||||||||||||||||
| Net income | 222 | 117 | 368 | 217 | |||||||||||||||||||
| Net loss attributable to noncontrolling interests, net of tax | (1) | — | (1) | — | |||||||||||||||||||
| Net income attributable to Jabil Inc. | $ | 223 | $ | 117 | $ | 369 | $ | 217 | |||||||||||||||
| Earnings per share attributable to the stockholders of Jabil Inc.: | |||||||||||||||||||||||
| Basic | $ | 2.10 | $ | 1.07 | $ | 3.46 | $ | 1.95 | |||||||||||||||
| Diluted | $ | 2.08 | $ | 1.06 | $ | 3.43 | $ | 1.93 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 106.0 | 110.0 | 106.5 | 111.3 | |||||||||||||||||||
| Diluted | 106.9 | 111.1 | 107.6 | 112.6 |
See accompanying notes to Condensed Consolidated Financial Statements.
JABIL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
We are one of the leading providers of worldwide manufacturing services and solutions. We provide comprehensive electronics design, production, and product management services to companies in various industries and end markets. Our services enable our customers to reduce manufacturing costs, improve supply-chain management, reduce inventory obsolescence, lower transportation costs, and reduce product fulfillment time. Our manufacturing and supply chain management services and solutions include innovation, design, planning, fabrication and assembly, delivery, and managing the flow of resources and products. We derive substantially all of our revenue from production and product management services (collectively referred to as “manufacturing services”), which encompass the act of producing tangible components that are built to customer specifications and are then provided to the customer.
We serve our customers primarily through dedicated business units that combine highly automated, continuous flow manufacturing with advanced electronic design and design for manufacturability. We currently depend, and expect to continue to depend for the foreseeable future, upon a relatively small number of customers for a significant percentage of our net revenue, which in turn depends upon their growth, viability, and financial stability.
We conduct our operations in facilities that are located worldwide, including but not limited to China, Malaysia, Mexico, and the United States. We derived a substantial majority, 72.6% and 72.7% of net revenue from our international operations for the three months and six months ended February 28, 2026. Our global manufacturing production sites allow customers to manufacture products simultaneously in the optimal locations for their products. Our global presence is key to assessing and executing on our business opportunities.
We have three reporting segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce, which are organized based on the economic profiles of the services performed, including manufacturing capabilities, market strategy, margins, return on capital, and risk profiles. Our Regulated Industries segment is focused on regulated markets and includes revenues from customers primarily in the automotive and transportation, healthcare and packaging, and renewable energy infrastructure industries. Our Intelligent Infrastructure segment is focused on the modern digital ecosystem including artificial intelligence (“AI”) infrastructure and includes revenues from customers primarily in the capital equipment, cloud and data center infrastructure, and networking and communications industries. Our Connected Living and Digital Commerce segment is focused on digitalization and automation, including warehouse automation and robotics, and includes revenues from customers primarily in the connected living and digital commerce industries.
We monitor the current economic environment and its potential impact on both the customers we serve as well as our end-markets and closely manage our costs and capital resources so that we can respond appropriately as circumstances change.
On February 20, 2026, the U.S. Supreme Court issued a ruling striking down tariffs imposed under the International Emergency Economic Powers Act, including, among others, tariffs on imports of certain Canadian, Chinese, and Mexican goods, a universal baseline tariff on imports from most countries, and reciprocal tariffs on select countries. The global tariff landscape continues to shift rapidly, with changes impacting businesses and markets around the world. We continue to monitor the situation, including any potential refunds of such tariffs, and evaluate the impact on our results of operations. No potential refunds have been recorded in the Condensed Consolidated Financial Statements as we cannot reasonably estimate the financial impact. For additional information, refer to Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025.
Refer to Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” section contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025, for further discussion of the items disclosed in Item 2. “Management's Discussion and Analysis of Financial Condition and Results of Operations” section as of February 28, 2026, contained herein.
Summary of Results
The following table sets forth, for the periods indicated, certain key operating results and other financial information (in millions, except per share data):
| Three months ended | Six months ended | ||||||||||||||||||||||
| February 28, 2026 | February 28, 2025 | February 28, 2026 | February 28, 2025 | ||||||||||||||||||||
| Net revenue | $ | 8,282 | $ | 6,728 | $ | 16,587 | $ | 13,722 | |||||||||||||||
| Gross profit | $ | 746 | $ | 576 | $ | 1,488 | $ | 1,182 | |||||||||||||||
| Operating income | $ | 374 | $ | 245 | $ | 657 | $ | 442 | |||||||||||||||
| Net income attributable to Jabil Inc. | $ | 223 | $ | 117 | $ | 369 | $ | 217 | |||||||||||||||
| Earnings per share – basic | $ | 2.10 | $ | 1.07 | $ | 3.46 | $ | 1.95 | |||||||||||||||
| Earnings per share – diluted | $ | 2.08 | $ | 1.06 | $ | 3.43 | $ | 1.93 |
Key Performance Indicators
Management regularly reviews financial and non-financial performance indicators to assess the Company’s operating results. Changes in our operating assets and liabilities are largely affected by our working capital requirements, which are dependent on the effective management of our sales cycle as well as timing of payments. Our sales cycle measures how quickly we can convert our manufacturing services into cash through sales. We believe the metrics set forth below are useful to investors in measuring our liquidity as future liquidity needs will depend on fluctuations in levels of inventory, accounts receivable, and accounts payable.
The following table sets forth, for the quarterly periods indicated, certain of management’s key financial performance indicators:
| Three months ended | |||||||||||||||||
| February 28, 2026 | November 30, 2025 | February 28, 2025 | |||||||||||||||
| Sales cycle(1) | 21 days | 17 days | 33 days | ||||||||||||||
| Inventory turns (annualized)(2) | 5 turns | 5 turns | 4 turns | ||||||||||||||
| Days in accounts receivable(3) | 48 days | 48 days | 50 days | ||||||||||||||
| Days in inventory(4) | 75 days | 70 days | 80 days | ||||||||||||||
| Days in accounts payable(5) | 102 days | 100 days | 97 days |
(1)The sales cycle is calculated as the sum of days in accounts receivable and days in inventory, less the days in accounts payable; accordingly, the variance in the sales cycle quarter over quarter was a direct result of changes in these indicators.
(2)Inventory turns (annualized) are calculated as 360 days divided by days in inventory.
(3)Days
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
As of the date of this report, there have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation required by Rules 13a-15 and 15d-15 under the Exchange Act (the “Evaluation”), under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15 and 15d-15 under the Exchange Act as of February 28, 2026. Based on the Evaluation, our CEO and CFO concluded that the design and operation of our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) accumulated and communicated to our senior management, including our CEO and CFO, to allow timely decisions regarding required disclosure.
On January 2, 2026, we completed the acquisition of Hanley Energy Group (“Hanley”). The scope of our evaluation of the effectiveness of our disclosure controls and procedures did not include the internal control over financial reporting of Hanley. This exclusion is in accordance with the SEC Staff’s general guidance that an assessment of a recently acquired business may be omitted from the scope of a registrant’s assessment for a period of up to one year following the acquisition. Hanley accounted for 4.3% of total assets and less than 1.0% of net revenue as of and for the three months ended February 28, 2026.
Changes in Internal Control over Financial Reporting
For our fiscal quarter ended February 28, 2026, we did not identify any modifications to our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II—OTHER INFORMATION
| Item 1. Legal Proceedings |
See the discussion in Note 17 - “Commitments and Contingencies” to the Condensed Consolidated Financial Statements.
Item 1A. Risk Factors
For information regarding risk factors that could affect our business, results of operations, financial condition or future results included in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. For further information on our forward-looking statements see Part I of this Quarterly Report on Form 10-Q.
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
The following table provides information relating to our repurchase of common stock, excluding excise tax, during the three months ended February 28, 2026:
| Period | Total Number of Shares Purchased**(1)** | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program**(2)** | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)****(2) | |||||||||||||||||||
| December 1, 2025 – December 31, 2025 | 1,227,693 | $ | 224.03 | 1,227,693 | $ | 400 | |||||||||||||||||
| January 1, 2026 – January 31, 2026 | 873 | $ | 243.56 | — | $ | 400 | |||||||||||||||||
| February 1, 2026 – February 28, 2026 | — | $ | — | — | $ | 400 | |||||||||||||||||
| Total | 1,228,566 | $ | 224.04 | 1,227,693 |
(1)The purchases include amounts that are attributable to 873 shares surrendered to us by employees to satisfy, in connection with the vesting of restricted stock unit awards, their tax withholding obligations.
(2)In July 2025, our Board of Directors authorized the repurchase of up to $1.0 billion of our common stock as publicly announced in a press release on July 17, 2025 (the “2026 Share Repurchase Program”). For more information, see “Liquidity and Capital Resources - Dividends and Share Repurchases”.
In December 2024, we issued a warrant to Amazon.com NV Investment Holdings LLC to acquire up to 1,158,539 of our ordinary shares as reported in a Current Report on Form 8-K filed on January 3, 2025. Refer to Note 10 – “Stockholders’ Equity” to the Condensed Consolidated Financial Statements for further details.
| Item 3. Defaults Upon Senior Securities |
None.
| Item 4. Mine Safety Disclosures |
Not applicable.
Item 5. Other Information
During the three months ended February 28, 2026, no director or “officer” of the Company (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934 (the “Exchange Act”)) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (each as defined in Item 408 of Regulation S-K of the Exchange Act).
Item 6. Exhibits
Index to Exhibits
| 32.2* | Section 1350 Certification by the Chief Financial Officer. | ||||||||||||||||||||||||||||||||||||||||
| 101 | The following financial information from Jabil’s Quarterly Report on Form 10-Q for the quarterly period ended February 28, 2026, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets as of February 28, 2026 and August 31, 2025, (ii) Condensed Consolidated Statements of Operations for the three months and six months ended February 28, 2026 and 2025, (iii) Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended February 28, 2026 and 2025, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three months and six months ended February 28, 2026 and 2025, (v) Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2026 and 2025, and (vi) the Notes to Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (Embedded within the inline XBRL Document in Exhibit 101). | ||||||||||||||||||||||||||||||||||||||||
| † | Indicates management compensatory plan, contract or arrangement | ||||||||||||||||||||||||||||||||||||||||
| * | Filed or furnished herewith | ||||||||||||||||||||||||||||||||||||||||
| ** | Certain portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. Jabil agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon request. | ||||||||||||||||||||||||||||||||||||||||
Certain instruments with respect to long-term debt of the Registrant and its consolidated subsidiaries are not filed herewith pursuant to Item 601(b)(4)(iii) of Regulation S-K since the total amount of securities authorized under each such instrument does not exceed 10% of the total assets of the Registrant and its subsidiaries on a consolidated basis. The Registrant agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon request.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| JABIL INC. Registrant | ||||||||
| Date: April 8, 2026 | By: | /s/ MICHAEL DASTOOR | ||||||
| Michael Dastoor Chief Executive Officer | ||||||||
| Date: April 8, 2026 | By: | /s/ GREGORY B. HEBARD | ||||||
| Gregory B. Hebard Chief Financial Officer |