Jabil Inc. Reports 15.7% Revenue Growth in Q3 Fiscal Year 2025

Jabil Inc. reported its financial results for the third quarter of fiscal year 2025, revealing a net revenue of $7.83 billion, a 15.7% increase from $6.77 billion in the same period last year. However, for the nine months ending May 31, 2025, the company experienced a slight decline in revenue, totaling $21.55 billion compared to $21.92 billion in the previous year. The gross profit for the quarter was $681.6 million, with an operating income of $403 million, marking a significant increase from $261 million in the prior year. Net income attributable to Jabil Inc. was $222 million, or $2.03 per diluted share, compared to $129 million, or $1.06 per diluted share, in the same quarter last year.

The company noted several strategic developments during the quarter, including the completion of acquisitions of Pharmaceutics International, Inc. and Mikros Technologies, which are expected to enhance Jabil's capabilities in the regulated industries and intelligent infrastructure segments. Additionally, Jabil announced a restructuring plan aimed at optimizing its organizational effectiveness, which is projected to incur approximately $200 million in pre-tax costs over the fiscal year. The restructuring plan is expected to result in net cash expenditures of $100 million to $130 million.

Operationally, Jabil's customer base remains concentrated, with its five largest customers accounting for approximately 34% of net revenue. The company reported a significant increase in revenue from its Intelligent Infrastructure segment, which rose by 51%, driven by growth in cloud and data center infrastructure. Conversely, the Connected Living and Digital Commerce segment saw a 7% decline in revenue, primarily due to decreased demand in its connected living business. The Regulated Industries segment's revenue remained stable, reflecting mixed performance across its various markets.

In terms of cash flow, Jabil generated $1.05 billion from operating activities in the nine months ended May 31, 2025, a decrease from $1.18 billion in the prior year. The company reported net cash used in investing activities of $578 million, primarily due to acquisitions and capital expenditures. Financing activities resulted in a net cash outflow of $1.17 billion, largely attributed to debt repayments and share repurchases. As of May 31, 2025, Jabil held approximately $1.52 billion in cash and cash equivalents, down from $2.20 billion at the end of the previous fiscal year.

Looking ahead, Jabil anticipates continued growth in its Intelligent Infrastructure segment and aims to navigate the challenges posed by global tariffs and market conditions. The company remains focused on optimizing its operations and leveraging its acquisitions to enhance its service offerings across its three reportable segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.