Jabil Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ruplu Bhattacharya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi, thanks for taking my questions. I want to start with AI. Can you give us some more details on which of the three areas you see more growth? Is it in core rack manufacturing or go transceivers or in switching, where do you see Jabil outpacing market growth? And there's some investor concern that Jabil could be losing some share in data center and AI. Can you talk about any share shifts that are happening? And how do you see margins in this segment?

Question: Ruplu Bhattacharya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Okay. Thanks for that, Matt. Maybe I'll switch to healthcare. So it looks like from your fiscal '26 guide, you're guiding to the low end of mid-single-digit growth. Can you talk about where you see growth? Is it in devices, equipment, or drug delivery? And specifically, the Croatia facility? It seems like it's getting delayed in terms of getting populated, how do you see the impact to margins of that in fiscal '26? And then how should we think about margins beyond that?

Question: Ruplu Bhattacharya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Okay. Thanks for the details there, Steve and Mike. I'm going to try and sneak one more in. Mike, looks like you met with the Indian Prime Minister Shri Narendra Modi. Can you talk about how the meeting went. And give us specifically your thoughts on investing in the US versus in India because there are different tariff rates. How do you prioritize those two regions in terms of investment?

Question: Ruplu Bhattacharya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Okay. Thanks for all the details.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Hi, yes. Thank you, and good morning very much for taking the questions. I wanted to start, if I could please, with the data-center business. Can you help us better understand how Jabil is managing its capacity in order of data center related products both in the first quarter and also this fiscal year? And I ask because you've commented that some of your sites are running 24/7 and have been at peak levels. So what are you doing in order to meet that demand? And what does that mean for the shape of growth this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 25, 2025 / 12:30PM, JBL.N - Q4 2025 Jabil Inc Earnings Call

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Thanks for that, Matt. And so I wanted to understand the margin dynamics within the Intelligent Infrastructure business. If I heard correctly, company is expecting margins this year to be in the mid-5% range. That's relatively flattish on very robust top line growth. So maybe help us understand some of the puts and takes to that segment for fiscal '26. And how should investors think about in that space over the longer term, there's been a lot of growth. There's also been some investor debates around the degree of competition. So if you can share more around thinking about profitability, that would be helpful. Thank you.

Question: Steven Fox - Fox Advisors LLC - Analyst : Hi, good morning, everyone. I had a couple of questions. I guess, first off, could you guys unpack the gross -- the operating margin guidance for the new fiscal year? It looks like sales are going up about $1.5 billion and margins by 20 basis points. But it seems like I'm just listening to the conversation so far, there's a lot of puts and takes in there. So I was just wondering of you could address some of those and to figure out how we got to the guidance there. And then I had a follow-up.

Question: Steven Fox - Fox Advisors LLC - Analyst : That's helpful. And but maybe can you add color just on the product pruning and also the investments in II, whether those are like material headwinds that we'll notice, within that five, six or something that's flying under the radar more?

Question: Steven Fox - Fox Advisors LLC - Analyst : Great, Mike, that's very helpful. And just one question for Matt. Maybe just -- I know there's a lot of detail here on this question, but maybe from a big-picture standpoint, when we think of -- you mentioned chillers and other power-management products. I mean on one hand, there's traditional EMS production and programs that you're doing. On the other hand, you guys have obviously increased your capabilities, as you mentioned. Like how is that all play out in terms of the market, especially when we think of a large competitor of yours that is more of an OEM play on power? How is Jabil compare within that range of what you could be doing and what it means for the margins? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 25, 2025 / 12:30PM, JBL.N - Q4 2025 Jabil Inc Earnings Call

Question: Steven Fox - Fox Advisors LLC - Analyst : Great. Thank you very much.

Question: Melissa Fairbanks - Raymond James - Analyst : Hey guys, thanks so much. I wanted to start off with a question for Steve. This may not be a fair question because it all just materialized overnight, but I'm curious about any trends that you're seeing with some of your healthcare customers related to the latest Section 232 issues. I know there hasn't been much time to digest, and from what I understand, it was kind of unexpected. I'd expect that most of your programs, like in Mexico, are MCA compliant. But I'm just wondering if you've seen any changes in customer behavior, given the possibility of more tariffs, or if this might just be a net neutral impact to your customer plans?

Question: Melissa Fairbanks - Raymond James - Analyst : Okay, great, thanks. That's very helpful. Maybe just one for the team. I -- well, Steve, this might be for you too. I'd also like to ask about the overall capacity utilization or the inefficiencies that you've been seeing. Correct me if I'm wrong, but I think a lot of the margin headwinds are inefficiencies outside the US were related to the auto business. If we do finally see an inflection point in that auto-transport business, do you have the capacity to address potential upside or is this something that it's going to take some time to flow through the P&L? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 25, 2025 / 12:30PM, JBL.N - Q4 2025 Jabil Inc Earnings Call

Question: Melissa Fairbanks - Raymond James - Analyst : Okay. Great. And maybe just sneak in one more. The new North Carolina facility that's coming on mid next year. I'm wondering what the expectations are to get that facility fully loaded in terms of timeline. It kind of seems like it might be more of what you're already doing. So maybe the demand is already there to support it right off. Maybe for Greg, what should we expect in terms of either the margin profile of that facility, revenue contribution toward late next year into fiscal '27 and even expectation for the depreciation expense.

Question: Melissa Fairbanks - Raymond James - Analyst : Okay. (laughter)

Question: Melissa Fairbanks - Raymond James - Analyst : Okay. Perfect.

Question: Melissa Fairbanks - Raymond James - Analyst : Great. Very helpful. Thanks so much, guys.