Hump Day proved to be insurmountable for many stocks on U.S. exchanges, but apparently someone forgot to tell Jabil (JBL 0.70%). Shares of the contract electronics manufacturer bumped 1.8% higher on the back of encouraging quarterly results, easily beating the S&P 500 index's 1.2% slump.
That's the way to begin the new year
That morning, Jabil posted its first-quarter fiscal 2026 figures. For the period, the company earned net revenue of $8.3 billion, representing a 19% year-over-year increase. Its "core" net income, i.e., not in accordance with generally accepted accounting principles (GAAP), rose even more sharply, advancing by 36% to $309 million ($2.85 per share).
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Both headline fundamentals were well above the consensus analyst estimates. Pundits tracking Jabil stock were modeling $8 billion on the top line and $2.69 per share for core net income.
In its earnings release, Jabil quoted CEO Mike Dastoor as saying that "Our intelligent infrastructure segment remains a major growth engine, supported by accelerating demand across cloud, data center infrastructure, networking, and capital equipment."
He added that the company's regulated industries and connected living and digital commerce segments also did better than management expected.
NYSE: JBL
Key Data Points
Sustainable demand
Jabil also proffered guidance for both its current quarter and the entirety of fiscal 2026. For the latter period, it's expecting net revenue of $32.4 billion, and core net income of $11.55 per share. These projections compare favorably to the average analyst forecasts of $31.6 billion and $11.12, respectively.
I believe demand from clients driving Jabil's intelligent infrastructure business will continue to grow, as the needs of artificial intelligence (AI) are sure to support advanced data center build-outs. And the company is far from a one-trick pony; it'll benefit from robust spending in other busy segments of the tech world too.
