Latest news with #MikeDastoor
Yahoo
2 hours ago
- Business
- Yahoo
JBL Q2 Deep Dive: AI Infrastructure Drives Strong Growth Amid Mixed End Market Trends
Electronics manufacturing services provider Jabil (NYSE:JBL) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 15.7% year on year to $7.83 billion. On top of that, next quarter's revenue guidance ($7.45 billion at the midpoint) was surprisingly good and 4.2% above what analysts were expecting. Its non-GAAP profit of $2.55 per share was 9.8% above analysts' consensus estimates. Is now the time to buy JBL? Find out in our full research report (it's free). Revenue: $7.83 billion vs analyst estimates of $7.04 billion (15.7% year-on-year growth, 11.2% beat) Adjusted EPS: $2.55 vs analyst estimates of $2.32 (9.8% beat) Adjusted EBITDA: $652 million vs analyst estimates of $566.3 million (8.3% margin, 15.1% beat) Revenue Guidance for Q3 CY2025 is $7.45 billion at the midpoint, above analyst estimates of $7.15 billion Management raised its full-year Adjusted EPS guidance to $9.33 at the midpoint, a 4.2% increase Operating Margin: 5.1%, up from 3.9% in the same quarter last year Market Capitalization: $19.41 billion Jabil's second quarter saw a strong positive reaction from the market, as the company delivered above-consensus results fueled by robust demand in its Intelligent Infrastructure segment. Management highlighted that growth was propelled by accelerated spending in AI-related cloud and data center infrastructure, as well as solid contributions from capital equipment and warehouse automation. CEO Mike Dastoor credited the company's regionalized manufacturing model and increased U.S. footprint for helping Jabil navigate ongoing geopolitical and supply chain complexities. Looking ahead, Jabil's outlook is anchored by continued strength in AI and data center infrastructure, which management believes will more than offset ongoing softness in electric vehicle and renewable energy markets. The company is investing $500 million to expand its U.S. manufacturing capacity, aiming to support both existing and new hyperscale customers. CFO Greg Hebard noted that this expansion is expected to sharpen Jabil's competitive edge and drive sustained growth, while management continues to focus on disciplined capital allocation and steady margin improvement. Management attributed the quarter's outperformance to exceptional execution in AI hardware, cloud infrastructure, and operational discipline, while noting that end market demand varied across segments. AI-driven infrastructure growth: The Intelligent Infrastructure segment experienced rapid expansion, with management citing demand for advanced server rack integration, power, and cooling systems to support AI workloads. Jabil's ability to scale design and engineering for hyperscale data centers was a primary driver of the segment's performance. Capital equipment momentum: Robust activity in automated testing equipment—driven by increased complexity in custom chips for AI—contributed meaningfully to growth. Management said the need for advanced testing gear remains strong, although some sub-segments like wafer fab equipment lagged due to weaker automotive and consumer demand. U.S. manufacturing investment: Jabil announced a $500 million commitment to a new Southeastern U.S. site, which will further localize production and expand capacity for AI data center infrastructure. This facility is expected to open by mid-2026, with management emphasizing its role in diversifying the customer base and supporting expanded solutions like liquid cooling. Mixed regulated industry trends: While healthcare showed promising results, management acknowledged ongoing softness in electric vehicle and renewable energy end markets. They are closely watching potential impacts from U.S. legislation and are managing these headwinds through selective customer engagement and cost discipline. Operational leverage and cost control: Improved inventory management and lower capital expenditures, following divestitures, contributed to strong free cash flow. CFO Greg Hebard reaffirmed the company's intent to return most of this cash to shareholders through share repurchases, underscoring a shift to a more asset-light, efficient operating model. Jabil's guidance reflects optimism around AI infrastructure demand, ongoing operational improvements, and a cautious stance on weaker markets such as EVs and renewables. AI and data center strength: Management expects the Intelligent Infrastructure segment, particularly AI and cloud data center projects, to continue driving growth. CEO Mike Dastoor emphasized that ongoing customer demand for complex integration, power management, and cooling solutions remains robust, with additional upside possible as new technologies like liquid cooling mature. U.S. capacity expansion: The new $500 million U.S. facility is designed to support both existing and new customers, with an eye on scaling solutions across the AI ecosystem. Management believes this investment will help diversify revenue streams and enhance Jabil's competitive positioning, though the financial impact will materialize over several years. End market caution and risk management: Ongoing softness in electric vehicle and renewable energy markets remains a headwind, with no near-term turnaround expected. Management is taking a conservative approach to guidance for these segments and is focused on healthcare and digital commerce as longer-term growth drivers. In future quarters, the StockStory team will be monitoring (1) execution of the new U.S. facility buildout and its effect on customer wins, (2) the pace of AI and data center infrastructure demand as new technologies like liquid cooling roll out, and (3) stabilization or recovery in lagging end markets such as EVs and renewables. Progress in healthcare and automation will also be key indicators of Jabil's ability to diversify growth. Jabil currently trades at $199.78, up from $181 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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Yahoo
7 hours ago
- Business
- Yahoo
Apple supplier Jabil plans $500M venture to build AI data centers
Electronics component maker Jabil is betting on surging infrastructure demand for AI data centers throughout the U.S. Jabil (NYSE: JBL) said on Tuesday that it's investing $500 million over the next several years to expand its footprint to support cloud and AI data center customers. The investment includes large-scale production facilities, capital investments and workforce development. Jabil has not announced any sites for new facilities yet, but expects its newest data center to be operational by mid-2026. 'This initiative is a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil's presence in the U.S.,' CEO Mike Dastoor said in a news release. 'While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world's leading brands navigate challenges.'Based in St. Petersburg, Florida, Jabil is a global manufacturing and supply chain solutions company. Jabil's customers include major brands in logistics, packaging, mobility, automotive, wearables, aerospace, enterprise, digital home, point-of-sale, printing and energy. Some of the company's largest clients include Apple, UPS and Amazon. Jabil has 30 facilities across the U.S. and more than 100 worldwide, with investments in automation, robotics and process optimization. The company's $500 million investment follows recent announcements by tech companies Apple, Nvidia and Foxconn, to create manufacturing facilities in the February, Apple (Nasdaq: AAPL) announced it will invest more than $500 billion in the U.S. over the next four years, including a major facility in Houston. Nvidia (Nasdaq: NVDA) said in April that they plan to invest $500 billion over the next four years to build AI super computers in the U.S., through partnerships with TSMC, Foxconn, Wistron, Amkor and SPIL. Nvidia's investments and partnerships will include a semiconductor chips facility in Arizona and AI supercomputer plant in Houston. Taiwan-based tech company Foxconn recently said it's investing $450 million in a 100-acre property in Houston to build an AI server manufacturing facility. The post Apple supplier Jabil plans $500M venture to build AI data centers appeared first on FreightWaves.
Yahoo
8 hours ago
- Business
- Yahoo
Jabil Stock Leads S&P 500 Gainers, Sets All-Time High as Results Top Estimates
Jabil shares jumped 11% Tuesday morning to lead gainers on the S&P 500. The circuit board maker's fiscal third-quarter results topped estimates and the firm lifted its full-year forecasts. The stock hit a new record high of $ (JBL) stock surged to a record high and led S&P 500 gainers on Tuesday morning, after the circuit board maker's fiscal third-quarter results topped estimates and the firm lifted its full-year projections. Revenue rose nearly 16% year-over-year to $7.83 billion, well above the $7.04 billion analyst consensus compiled by Visible Alpha. "Core," or adjusted, earnings per share came in at $2.55, also better than projections. "Our Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand," CEO Mike Dastoor said. "Despite softness in areas like [electric vehicles], Renewables, and 5G, our diversified portfolio and operational discipline have us tracking toward record core earnings per share." Jabil lifted its full-year outlook to $29 billion in revenue and $9.33 in core EPS from $27.9 billion and $8.95, respectively. For the fourth quarter, it expects revenue of $7.1 billion to $7.8 billion and core EPS of $2.64 to $3.04, with the midpoints of both metrics above Visible Alpha consensus. Jabil shares were up more than 11% in recent trading at $201.84 after earlier setting a new all-time high at $202.82. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
10 hours ago
- Business
- Reuters
Apple supplier Jabil raises annual forecast as data center appetite remains strong
June 17 (Reuters) - Electronics component maker Jabil (JBL.N), opens new tab raised full-year profit and revenue forecast on Tuesday, betting on strong infrastructure services demand for data centers. Shares of the company rose about 5% in premarket trading, after it also surpassed Wall Street estimates for third-quarter results. Companies rushing to adopt the artificial intelligence technology in their operations have pushed up the need for data centers, which can support vast amounts of computing and complex tasks. "Our intelligent infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand," CEO Mike Dastoor said in a statement. Jabil, a key Apple (AAPL.O), opens new tab supplier, separately said on Tuesday it would invest $500 million in the U.S. over the next "several" years to support cloud and AI data center infrastructure customers. The company expects fiscal 2025 revenue to be $29 billion, compared with its previous forecast of $27.9 billion. It also raised its adjusted profit per share forecast to $9.33 from $8.95 earlier. Its third-quarter revenue rose 15.7% to $7.83 billion, while analysts' on average estimated $7.06 billion, according to data compiled by LSEG. Per-share adjusted profit came in at $2.55, also above expectation of $2.31.
Yahoo
11 hours ago
- Business
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Jabil Announces Planned Multi-Year $500 Million Investment in U.S. Manufacturing for Cloud and AI Data Center Infrastructure
ST. PETERSBURG, Fla., June 17, 2025--(BUSINESS WIRE)--Jabil Inc. (NYSE: JBL), a global leader in engineering, supply chain, and manufacturing solutions, today announced it intends to invest approximately $500 million over the next several years to expand its footprint in the Southeast United States to support cloud and AI data center infrastructure customers. This significant commitment will enable new large-scale manufacturing capabilities, capital investments, and workforce development. Jabil is in the final stages of site selection and expects it to be operational by mid-calendar year 2026. "To secure America's future in artificial intelligence, it's crucial that we build the hardware that powers AI innovation right here at home. Domestic manufacturing isn't just an economic priority; it's a matter of national security. We're proud to expand Jabil's U.S. factory network, scaling our capabilities to better support the growing needs of our data center customers," said Matt Crowley, Executive Vice President, Global Business Units. This strategic investment builds on Jabil's recent acquisition of New Hampshire-based Mikros Technologies, a leading provider of liquid cooling and thermal management solutions. Mikros Technologies serves a wide range of industries, including AI data center infrastructure, energy storage, and semiconductor testing. "This initiative is a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil's presence in the U.S.," said CEO Mike Dastoor. "While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world's leading brands navigate challenges with agility and resilience." Based in St. Petersburg, Florida, Jabil has 30 sites across the United States, with proven experience and investments in automation, robotics, and process optimization. These facilities support demand for production at scale across industries. Forward Looking Statements: This release contains forward-looking statements, including those regarding our intent to expand our factory network in the United States and our estimate for the commencement of manufacturing. The statements in this release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from our current expectations. Such factors include, but are not limited to: scheduling production, managing growth and capital expenditures and maximizing the efficiency of our manufacturing capacity effectively; managing rapid declines or increases in customer demand and other related customer challenges that may occur; our dependence on a limited number of customers; and our ability to purchase components efficiently and reliance on a limited number of suppliers for critical components. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024, and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements. About Jabil: At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, offering comprehensive engineering, supply chain, and manufacturing solutions. With over 50 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customized solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the globe. Discover more at View source version on Contacts Investor Contact Adam BerrySenior Vice President, Investor Relations and Communicationsadam_berry@ Media Contact Timur AydinSenior Director, Enterprise Marketing and Communicationspublicrelations@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
