Jabil Stock Drops 10% Despite Record Q4 Beat and Raised FY27 Outlook Driven by AI Demand

Jabil reported fiscal fourth-quarter revenue of $10.62 billion, up 29% year over year and well above the roughly $9.72 billion Wall Street had expected. Core earnings per share came in at $4.40, up 34% year over year and ahead of the $4.08 consensus estimate, while GAAP EPS of $3.76 rose 89%. Core operating income reached $675 million, against an estimate of $625 million, at a 6.4% core operating margin.

For the full fiscal year 2026, Jabil posted $36.0 billion in revenue, up 21%, and core EPS of $13.09, up 34%. Management attributed the growth largely to accelerating demand from AI data center customers, with its Intelligent Infrastructure segment delivering 45.5% segment growth. The company expects to add more than $8.5 billion in revenue in fiscal 2027, following more than $6 billion of growth in fiscal 2026.

For fiscal 2027, Jabil guided for $44.5 billion in revenue, above the $42.79 billion consensus, and core EPS of $17.55, above the $16.87 consensus, representing roughly 34% EPS growth. Core operating margin is expected to expand 30 basis points to 6.1%, and adjusted free cash flow is projected at approximately $1.6 billion. The company also announced a new $1.5 billion share buyback program, and its diluted share count already fell to 106.0 million, down 3.2 million year over year. For fiscal first-quarter 2027, Jabil guided revenue of $10.6 billion to $11.4 billion, against an estimate of $10.0 billion, and core EPS of $3.80 to $4.20, above the $3.65 estimate.

Despite results that beat estimates across every major metric and guidance well above consensus, Jabil shares fell sharply, dropping around 4.7% in premarket trading and extending losses through the session to close down approximately 10.4%, crossing below their 200-day moving average of $300.59 and hitting a session low of $284.39. The selloff appeared disconnected from the underlying results, with some analysts characterizing the decline as a buying opportunity for value-oriented investors.