Electronics manufacturing services provider Jabil (NYSE: JBL) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 11.8% year on year to $8.75 billion. On top of that, next quarter’s revenue guidance ($9.6 billion at the midpoint) was surprisingly good and 7.3% above what analysts were expecting. Its non-GAAP profit of $3.16 per share was 1.3% above analysts’ consensus estimates.

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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

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $33.59 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 grew its sales 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.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Jabil’s annualized revenue growth of 5.2% over the last two years is above its five-year trend, suggesting some bright spots.

This quarter, Jabil reported year-on-year revenue growth of 11.8%, and its $8.75 billion of revenue exceeded Wall Street’s estimates by 2.3%. Company management is currently guiding for a 16.3% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.5% over the next 12 months, an improvement versus the last two years. This projection is particularly noteworthy for a company of its scale and indicates its newer products and services will spur better top-line performance.

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Adjusted Operating Margin

Jabil was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 5.1% was weak for a business services business.

On the plus side, Jabil’s adjusted operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Jabil generated an adjusted operating margin profit margin of 5.1%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Jabil’s EPS grew at 18.4% 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.

Diving into the nuances of Jabil’s earnings can give us a better understanding of its performance. As we mentioned earlier, Jabil’s adjusted operating margin was flat this quarter but expanded by 1.1 percentage points over the last five years. On top of that, its share count shrank by 29.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Jabil, its two-year annual EPS growth of 17.9% is similar to its five-year trend, implying strong and stable earnings power.

In Q2, Jabil reported adjusted EPS of $3.16, up from $2.55 in the same quarter last year. This print beat analysts’ estimates by 1.3%. Over the next 12 months, Wall Street expects Jabil’s full-year EPS to grow 18.6% from $11.99 to $14.22.

Key Takeaways from Jabil’s Q2 Results

We were impressed by how significantly Jabil blew past analysts’ EPS guidance for next quarter 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 good print with some key areas of upside. Investors were likely hoping for more, and shares traded down 2.4% to $366.45 immediately following the results.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).