Jabil stock dropped Wednesday even after the contract manufacturer announced stronger-than-expected guidance for its current fiscal-year year driven by booming demand for artificial intelligence and data-center infrastructure.
Jabil's strong outlook for fiscal 2027 topped Wall Street estimates. The company expects adjusted earnings of $17.55 a share on revenue of $44.5 billion. Analysts polled by FactSet project adjusted earnings of $16.87 a share on revenue of $42.8 billion.
The company outlined its projections for the fiscal first quarter of 2027, anticipating revenue between $10.6 billion and $11.4 billion, better than analysts' estimates of $9.9 billion. It also projects adjusted earnings of $3.80 to $4.20 a share, well above Wall Street's calls for $3.64.
The numbers didn't appear to impress investors as shares fell 2.2% to $311.99 Wednesday. The stock has risen 34% this year, according to Dow Jones Market Data.
Earnings for the fiscal fourth quarter, which ended Aug. 31, also beat analysts' expectations. Revenue for the quarter grew nearly 28% to $10.6 billion, well above consensus analysts' calls for $9.7 billion. Adjusted earnings of $4.40 a share surpassed Wall Street's projections of $4.07.
CEO Mike Dastoor attributed the solid earnings for its fiscal fourth quarter and fiscal 2026 to significant growth in artificial-intelligence infrastructure. "These results reflect the progress we've made in moving up the value chain, taking on more of our customers' engineering and manufacturing complexity while maintaining an asset-light model," he said in a press release Wednesday.
The company reported $36 billion in revenue in fiscal 2026 and adjusted earnings of $13.09 a share. Revenue grew 21% from the prior fiscal year.