Electronics manufacturing services provider Jabil (NYSE: JBL) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 23.1% year on year to $8.28 billion. On top of that, next quarter’s revenue guidance ($8.5 billion at the midpoint) was surprisingly good and 6% above what analysts were expecting. Its non-GAAP profit of $2.69 per share was 7.2% above analysts’ consensus estimates.

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“Jabil delivered a very strong second quarter, with results ahead of our expectations across revenue, core operating margin, and core EPS,” said CEO Mike Dastoor.

Company Overview

With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.

With $32.67 billion in revenue over the past 12 months, Jabil is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s harder to find incremental growth when you’ve penetrated most of the market. To accelerate sales, Jabil likely needs to optimize its pricing or lean into new offerings and international expansion.

As you can see below, Jabil’s sales grew at a sluggish 2.9% compounded annual growth rate over the last five years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Jabil’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, Jabil reported robust year-on-year revenue growth of 23.1%, and its $8.28 billion of revenue topped Wall Street estimates by 6.8%. Company management is currently guiding for a 8.6% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months, similar to its two-year rate. While this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average.

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Operating Margin

Jabil’s operating margin has generally stayed the same over the last 12 months, averaging 4.6% over the last five years. This profitability was lousy for a business services business and caused by its suboptimal cost structure.

Analyzing the trend in its profitability, Jabil’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

In Q1, Jabil generated an operating margin profit margin of 4.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Jabil’s EPS grew at 21.9% compounded annual growth rate over the last five years, higher than its 2.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Jabil, its two-year annual EPS growth of 14.2% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q1, Jabil reported adjusted EPS of $2.69, up from $1.94 in the same quarter last year. This print beat analysts’ estimates by 7.2%. Over the next 12 months, Wall Street expects Jabil’s full-year EPS of $11.38 to grow 10.4%.

Key Takeaways from Jabil’s Q1 Results

We were impressed by how significantly Jabil blew past analysts’ revenue expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $263.00 immediately after reporting.

Sure, Jabil had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).