Jabil Inc. provides comprehensive engineering, supply chain, and manufacturing solutions to many of the world’s top brands. The company operates over 100 sites globally and specializes in various sectors, including electronics, healthcare, and digital commerce.

In the third quarter of fiscal year 2025, Jabil reported robust financial results, indicating a significant rise in performance metrics. Net revenue reached $7.8 billion, marking a 16% increase year-over-year, and exceeding projections by $800 million. Core operating income was recorded at $420 million, resulting in core operating margins of 5.4%, which is a 20 basis point improvement from the previous year. The GAAP operating income was $403 million, with diluted GAAP earnings per share of $2.03. Adjusted core diluted earnings per share rose to $2.55, up 35% from Q3 of last year.

In the Regulated Industries segment, revenue was $3.1 billion, consistent with expectations but flat compared to the previous year. Core operating margin for this segment was 5.5%, up 70 basis points sequentially but down 50 basis points from the prior year. The Intelligent Infrastructure segment demonstrated significant growth, with revenue climbing 51% year-over-year to $3.4 billion, driven primarily by demand for AI-related cloud and data center infrastructure solutions. This segment’s core operating margin stood at 5.3%. Meanwhile, the Connected Living & Digital Commerce segment reported revenue of $1.3 billion, down approximately 7% year-over-year, although core operating margins improved by 210 basis points to 5.3%.

Jabil disclosed further operational metrics, noting a decrease in inventory days to 74 and net capital expenditures for the quarter at $80 million. Year-to-date adjusted free cash flow reached $813 million and is projected to exceed $1.2 billion for the full fiscal year. The company exited the quarter with a debt-to-core EBITDA ratio of approximately 1.4x and cash balances of about $1.5 billion.

Looking ahead to the fourth quarter, Jabil expects revenue in the range of $7.1 billion to $7.8 billion, with core operating income estimated between $428 million and $488 million. The guidance indicates GAAP operating income should fall between $331 million and $411 million. Core diluted earnings per share is anticipated to be between $2.64 and $3.04 while GAAP diluted earnings per share is expected to be in the range of $1.79 to $2.37. Additionally, the company has raised its fiscal year 2025 revenue outlook to approximately $29 billion, maintaining core operating margins at 5.4% and core diluted earnings per share at $9.33 for the year.

Overall, Jabil’s reported metrics reflect a strong operational performance amid dynamic market conditions, particularly within its Intelligent Infrastructure segment, while acknowledging challenges in certain segments, including Regulated Industries and Connected Living.