Sep 30, 2026 earnings call — Big AI-driven revenue ramp and capacity adds
Jabil reported Q4 revenue of approximately $10.6 billion and guided Q1 revenue to $10.6 billion to $11.4 billion.
Revenue $10.6B (est $9.7B) · EPS $4.40 (est $4.07) · Next-quarter revenue outlook $10.6B–$11.4B
Key quotes
"Demand for AI infrastructure remains strong and continues to accelerate."
"Memory, in particular, is being reallocated towards AI and hyperscale demand, tightening supply across many of the diversified end markets that we serve."
"We're now beginning to fill the additional capacity with the committed business."
Analyst Q&A 6
Execution risk for big growth and AI
Q (Steven Fox · Fox Advisors): How hard is it to execute the $8.4 billion growth this year compared with last year, and how much of the 6.1% operating margin is from volume versus controllable factors? Also, how will physical AI contribute this year and beyond?
A: Management said they feel really good about hitting the $8.4 billion and the 6.1% margin. They are adding 4 million square feet of capacity with booked orders and customers ready, and margins are back-end loaded because initial ramps raise costs and lower yields. On physical AI, commercialization is very early, so they did not build much from it into FY '27, but Jabil is well positioned across devices and components if adoption accelerates.
"I actually feel really good about the 6.1% for the year." — Michael Meheryar Dastoor (CEO)
Regulation and supply for data centers
Q (Mark Delaney · Goldman Sachs): Are potential regulations affecting data center infrastructure and AI builds, and have customers changed timing or location for data center capacity? Also, how does the seasonality and capacity ramp affect linearity and supply visibility?
A: They said they spend a lot of time with government and currently do not see significant disruption from regulation into fiscal '27 or '28, though they are watching midterms. Seasonality causes a Q2 dip and margins are more back-end loaded because ramps raise costs and lower yields early in ramps. On supply, they acknowledged constraints exist but said Jabil's long supplier relationships, tools, and team give confidence to navigate supply challenges through fiscal '27.
"What I would tell you is, at this point, we don't see any significant impact and/or disruption." — Matt Crowley
Margin progression and networking growth
Q (Joseph Cardoso · JPMorgan): How should we think about margins rising through the year and exit run rate given underutilization and ramps? Also, why is networking growth guide lower than other Intelligent Infrastructure markets?
A: They said the year shape is similar to last year: margins lighter in the first half then improve in the back half as capacity utilization increases and SG&A leverages better mix. For networking, they explained the reporting line shows 15% because communications weakness pulls that line down, while the networking business itself is growing roughly 45% to 50%.
"Again, as Mike mentioned, the shape of the year will be very similar to last year." — Gregory Hebard (CFO)
Asset-light model, capacity, Croatia, GLP-1
Q (Ruplu Bhattacharya · BofA): Can the business stay asset-light while adding capacity for cloud and data center growth, and will you need more capital? Also, status of Croatia ramp and any GLP-1 impact on Healthcare growth and margins?
A: Management reiterated they remain asset-light and expect CapEx about 1.5% to 2%, closer to 1.5%, and said no need to raise funds. They are adding 4 million square feet and expect a dollar increase in net working capital while still targeting $1.6 billion free cash flow. On Croatia, ramp continues in fiscal '27 with full production in fiscal '28, and healthcare growth is broad across subsegments including some GLP-1 exposure but driven by wins across auto-injectors, diagnostics, devices and orthopedics.
"So I absolutely and categorically think we still have an asset-light model." — Michael Meheryar Dastoor (CEO)
Longer-term growth drivers and capacity signals
Q (David Vogt · UBS): How should we think about the company's growth algorithm longer term across regulated markets, Intelligent Infrastructure, and automation, and what demand signals would prompt adding more capacity?
A: They said they will not give FY '28 growth numbers but believe regulated markets are recovering and Intelligent Infrastructure demand is far outstripping supply, with capability offerings resonating with customers. They added they prepared capacity in '26 for '27 and feel good about the 12- to 24-month outlook; additional capacity would be considered if new, unanticipated customer wins appear, and different types of data center demand require different capacity/power profiles.
"So I won't provide FY '28 growth sort of numbers, but I do think you hit all the right spots." — Michael Meheryar Dastoor (CEO)
Inventory days and moving inventory
Q (Melissa Dailey Fairbanks · Raymond James): Why did days of inventory rise and is it from higher input costs or customers asking to preplace inventory? Have there been issues moving inventory between regions?
A: They said net inventory days are 64, down 4 days from Q3 but above the 55 to 60 target range, driven by higher gross inventory, higher commodity pricing, and more inventory weighted to cloud DCI. They expect normalization back toward the 55–60 range with customer support on deposits and operational execution, and they said logistics and regional moves are working well; the bigger risk remains access to supply.
"So yes, our net inventory days is 64." — Gregory Hebard (CFO)