Shares of Jabil Circuit (JBL) plummeted 8.55% in Thursday's trading session, despite the company reporting fourth-quarter results that surpassed analyst expectations. The stark contrast between the strong performance and the stock's negative reaction has left investors puzzled and concerned about the company's future outlook.

Jabil posted adjusted earnings per share of $3.29 for the fourth quarter, significantly beating the IBES estimate of $2.88. Revenue for the quarter came in at $8.3 billion, also outperforming the expected $7.547 billion. CEO Mike Dastoor noted that "Fiscal 2025 was a strong year for Jabil," highlighting the company's success in capitalizing on AI-driven demand across various sectors.

However, the company's forward guidance seems to have spooked investors. For the first quarter of fiscal 2026, Jabil forecasts net revenue between $7.7 billion and $8.3 billion, with adjusted earnings per share ranging from $2.47 to $2.87. The full fiscal year 2026 outlook projects revenue of $31.3 billion and adjusted earnings per share of $11. While these figures are generally in line with or slightly above current analyst expectations, they appear to have fallen short of the market's more optimistic projections. The mismatch between the strong Q4 performance and the tepid guidance has raised concerns about Jabil's growth trajectory and potential challenges in the coming quarters, leading to the significant sell-off in the stock.