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January 12, 2026 • 4 min read
For investors tracking the hardware infrastructure underpinning the global economy, Jabil Inc. (JBL) provides a distinct vantage point. As a top-tier Electronics Manufacturing Services (EMS) provider, Jabil designs and builds complex electronics for major brands across industries ranging from healthcare to cloud computing.
The company recently released its financial results for the first fiscal quarter of 2026, ended November 30, 2025. In this post, we will unpack the income statement from their latest 10-Q filing to see how the company is navigating the divergence between booming data center demand and softer consumer electronics markets.
To understand how Jabil converts its top-line sales into profit, we have visualized their income statement below. This diagram traces the flow of money from revenue through expenses to net income.
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The headline numbers for Jabil were strong. Net revenue reached $8.3 billion, marking an 18.7% increase from the $7.0 billion reported in the same quarter of the prior year. However, a deeper look reveals that this growth was heavily concentrated in one specific area.
The Intelligent Infrastructure segment was the clear engine of growth. Revenue in this division skyrocketed to $3.85 billion, up from roughly $2.50 billion in the prior year period—a surge of over 54%. This segment, which includes hardware for cloud data centers and networking, has now overtaken other divisions to account for approximately 46% of Jabil’s total net revenue. This aligns with the broader industry trend of aggressive capital expenditure on AI and cloud infrastructure by major technology firms.
In contrast, the Connected Living and Digital Commerce segment, which is more exposed to consumer electronics and retail ecosystems, contracted. Revenue here fell to $1.38 billion compared to $1.54 billion a year ago. The Regulated Industries segment (automotive, healthcare, and packaging) remained a steady performer, posting modest growth to reach $3.07 billion.
An interesting byproduct of the infrastructure boom is a shift in the geographic mix of Jabil’s revenue. Historically, the vast majority of Jabil's revenue is derived from foreign sources. However, for the three months ended November 30, 2025, foreign source revenue dropped to 72.8% of the total, down notably from 80.8% in the prior year.
Management explicitly attributed this shift to "domestic revenue growth within our Intelligent Infrastructure segment." This suggests that the physical build-out of data center hardware driving Jabil’s top line is occurring disproportionately within the United States, reflecting the on-shoring or domestic expansion of critical AI infrastructure.
Despite the complexity of scaling its infrastructure operations, Jabil improved its operating profitability. Operating income rose to $283 million, a roughly 44% increase compared to $197 million in the first quarter of fiscal 2025.
This profit growth was achieved even as the company incurred significant costs to streamline operations. Jabil recorded $76 million in restructuring, severance, and related charges during the quarter. The filing details that $32 million of this was related to employee severance and benefits, while $31 million was attributed to asset write-offs. These charges point to a company actively realigning its workforce and footprint—shedding costs in slower-growth legacy areas to double down on high-growth opportunities.
Jabil closed the quarter with Net Income of $146 million, up from $100 million in the same period last year. On a per-share basis, the company reported Diluted Earnings Per Share (EPS) of $1.35, compared to $0.88 in the prior year quarter.
The first quarter of fiscal 2026 highlights a successful pivot for Jabil. By capturing the wave of demand in intelligent infrastructure, the company has offset weakness in consumer markets and driven double-digit revenue growth. While the restructuring charges indicate ongoing adjustments, the bottom-line expansion suggests that Jabil’s bet on the data center economy is paying dividends.
Last updated: January 12, 2026