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Feb 28

Jabil Q2 2025 Earnings Report

Jabil posted its Q2 FY25 results, showing a decline in revenue and net income compared to the prior year but outperforming internal expectations.

Key Takeaways

Jabil reported Q2 FY25 revenue of $6.73 billion, slightly down from the previous year. GAAP EPS came in at $1.06, while non-GAAP core diluted EPS was $1.94. Net income decreased to $117 million, and operating income was $245 million. The company highlighted strength in key end-markets despite ongoing macroeconomic and geopolitical challenges.

Revenue reached $6.73 billion, a slight decline year-over-year.

Net income fell to $117 million from $927 million a year ago.

GAAP EPS was reported at $1.06, with core EPS at $1.94.

Operating income was $245 million, significantly lower compared to $1.13 billion in Q2 FY24.

Total Revenue
$6.73B
Previous year: $6.77B
-0.6%
EPS
$1.94
Previous year: $1.68
+15.5%
Gross Profit
$576M
Previous year: $633M
-9.0%
Cash and Equivalents
$1.59B
Previous year: $2.57B
-38.0%
Free Cash Flow
$487M
Previous year: -$48M
-1114.6%
Total Assets
$17.4B
Previous year: $17.1B
+1.6%

Jabil

Jabil

Forward Guidance

For Q3 FY25, Jabil expects net revenue between $6.7 billion and $7.3 billion, GAAP operating income of $282 million to $352 million, GAAP EPS between $1.50 and $1.99, and non-GAAP core EPS between $2.08 and $2.48. Full-year FY25 guidance includes $27.9 billion in net revenue and core EPS of $8.95.

Positive Outlook

  • Expected Q3 revenue range between $6.7 billion and $7.3 billion.
  • Q3 GAAP operating income projected between $282 million and $352 million.
  • Q3 core EPS guidance set between $2.08 and $2.48.
  • Full-year net revenue forecasted at $27.9 billion.
  • Adjusted free cash flow expected to exceed $1.2 billion for FY25.

Challenges Ahead

  • Continued geopolitical uncertainties may affect operations.
  • Macro environment remains challenging and unpredictable.
  • Potential disruptions from supply chain issues and transportation costs.
  • Margin pressures due to restructuring and severance expenses.
  • Increased competition and technology changes could impact growth.