Jabil, Inc. JBL reported healthy first-quarter fiscal 2025 results, with both the bottom and top lines surpassing the Zacks Consensus Estimate. However, the company reported a top-line contraction year over year, owing to weakness in some verticals.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Healthy traction in the data center infrastructure, cloud and digital commerce end markets is a tailwind.

Net Income

Net income on a GAAP basis in the quarter was $100 million or 88 cents per share compared with $194 million or $1.47 per share in the prior-year quarter. The decline is primarily attributed to top-line contraction year over year.

Non-GAAP net income in the reported quarter was $228 million or $2 per share compared with $343 million or $2.60 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.87.

Jabil, Inc. Price, Consensus and EPS Surprise

Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote

Revenues

Net sales during the quarter decreased to $6.99 billion from $8.4 billion reported in the year-ago quarter. However, the top line beat the consensus estimate of $6.6 billion. Demand softness in several end markets impeded the top line.

In the first quarter, the Regulated Industries segment contributed 42% in revenues. Revenue declined 7% year over year in this segment owing to weakness in the Auto & Transportation vertical.

Net sales from the Intelligent Infrastructure segment contributed 36% of total revenues, up 5% year over year. Healthy demand in the Capital Equipment, Cloud and Data Center Infrastructure vertical supported the net sales.

About 22% of the total revenues came from Connected Living & Digital Commerce segment. Net sales improved 46% year over year from this segment, owing to healthy momentum in Digital Commerce vertical.

Other Details

Gross profit was $606 million compared with $775 million in the year-ago quarter. Non-GAAP operating income aggregated $347 million, down from $499 million in the year-ago period. Non-GAAP operating margin was 5% compared with 6% in the year-ago quarter.

Cash Flow & Liquidity

In first-quarter fiscal 2025, Jabil generated $312 million of net cash from operating activities compared with $448 million in the previous year quarter. As of Nov. 30, 2024, the company had $2.05 billion in cash and cash equivalents, with $2.88 billion of notes payable and long-term debt.

Outlook

For the second quarter of fiscal 2025, revenues are expected to be in the range of $6.1-$6.7 billion. Non-GAAP operating income is projected in the $286-$346 million range. Management estimates non-GAAP earnings per share within the band of $1.60-$2.00.

For fiscal 2025, revenues are projected at $27.3 billion. Adjusted free cash flow is estimated at $1.2 billion. Non-GAAP earnings per share are expected at $8.75.