With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Fortune Global 500

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

America's Most Innovative Companies

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

World's Most Admired Companies

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

With 100 plants in 30 countries, the manufacturing services company is frequently recognized for its efforts in social and environmental responsibility. Its two largest customers, Amazon and Apple, contributed 31% of the company's $27.3 billion net revenue in the last fiscal year, according to an SEC filing.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-104-Jabil

This year's Fortune 500 marks the 66th running of the list.

F500-2020-121-Jabil

A contract manufacturer of circuit boards and computer systems for companies in many industries, Jabil operates at more than 100 sites worldwide.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Culture rank

Process rank

Product rank

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Jabil provides electronics manufacturing and diversified manufacturing services to the telecommunications, health care, and automotive industries as well as others. The company was founded in 1966 and, up until 2017, was known as Jabil Circuit. In addition to providing design, production, and product management services for electronics, Jabil also offers product safety and compliance-related services and more.

Q4 2026

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Jabil (JBL): Company Profile, Stock Price, News, Rankings

legacy

Jabil

jabil

Greetings, and welcome to the Jabil First Quarter Fiscal Year 2025 Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. Session. It's now my pleasure to introduce your host, Adam Berry, Senior Vice President, IR and Communications. Adam, please go ahead.

Good morning, and welcome to Jabil's Q1 fiscal year 2025 earnings call. My name is Adam Berry, and I'm Senior Vice President of Investor Relations and Communications. Joining me on today's call are Chief Financial Officer, Greg Hebert and Chief Executive Officer, Mike Dastoor. We're happy to be joining you today from St. Petersburg, Florida.

As a reminder, we conducted our September earnings call hours before Hurricane Helene made landfall in the Tampa Bay area followed by Milton thereafter. Although these storms caused significant damage to the southeast, our two sites in St. Petersburg, Florida and our 2 sites in North Carolina were all operational within 10 days. The tireless efforts of our employees to get these sites back up and running, considering many of them experienced damage to their own homes and communities was incredible. Thank you to all those that helped.

With that, please note that today's presentation is being live streamed. And during our prepared remarks, we will be referencing slides.

Investor Relations section of jabil.com. After today's presentation concludes, complete recording will be available on the website for playback. In addition, we will be making forward looking statements during this presentation, including among other things, those regarding the anticipated outlook for our business, such as our currently expected fiscal year net revenue and earnings. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. An extensive list of these risks and uncertainties are identified in our Annual Report on Form 10 ks for the fiscal year ended August 31, 2024 and other filings with the SEC.

Jabil disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise. With that, I'd now like to turn the call over to Greg.

Thank you, Adam. Good morning, everyone. Thanks for taking the time to join our call today. I'm pleased to report that we're off to a solid start for FY 2025. With Q1 revenue coming in at $7,000,000,000 up 1% year on year, excluding the approximately $1,450,000,000 associated with the mobility divestiture in the prior year quarter.

Core operating income for the quarter came in at $347,000,000 Core operating margins came in at 5% in spite of a roughly 10 to 20 basis points of hurricane related impact. Net interest expense in Q1 came in better than anticipated at $60,000,000 reflecting continued good working capital management by the team. On a GAAP basis, operating income was $197,000,000 and our GAAP diluted earnings per share was $0.88 Core diluted earnings per share was $2 Turning now to our performance by segment in the quarter. Our regulated industry segment reported revenue of roughly $3,000,000,000 down 7% year on year due to continued weakness in our renewable energy and EV markets. Despite this, core operating margins for the segment increased by 10 basis points to 4.7%.

In the Intelligent Infrastructure segment, we saw revenue of $2,500,000,000 up 5% year on year. This growth was primarily driven by strong demand in our AI related cloud, data center infrastructure and capital equipment markets. The core operating margin for the segment was 4.8%, a 10 basis point improvement compared to the prior year quarter. In our Connected Living and Digital Commerce segment, revenues were $1,500,000,000 down 46% year on year due to our mobility divestiture. Excluding the mobility divestiture from the prior year, revenue growth for this segment was approximately 12%, reflecting strong year on year growth across our digital commerce and warehouse automation markets.

Core operating margins for the segment came in at 5.8% in Q1. Shifting gears to our cash flow and balance sheet metrics where we continue to see robust results. Inventory at the end of Q1 was flat sequentially at 76 days. After adjusting for inventory deposits, net inventory days were 56, a 2 day increase quarter over quarter, but as expected and within our long term target range of 55 to 60 days. Thanks to disciplined working capital management by the team, our Q1 cash flow from operations were very strong coming in at $312,000,000 Net capital expenditures for the Q1 were $86,000,000 and for the full year we continue to expect net CapEx to be between 1.5% to 2% of revenue.

As a result of the solid first quarter performance and cash flow generation, adjusted free cash flow for the quarter came in at $226,000,000 We continue to expect strong free cash flow for the year to come at $1,200,000,000 We exited the Q1 with a healthy balance sheet with debt to core EBITDA levels of approximately 1.4 times and cash balances of approximately $2,100,000,000 In Q1, we repurchased 1,800,000 shares for $232,000,000 We have $768,000,000 remaining on our current $1,000,000,000 share repurchase authorization as of the end of Q1. We remain fully committed to completing the current share repurchase authorization by the end of FY 'twenty five. Before I discuss the next quarter guidance, I would like to conclude my remarks on Q1 by acknowledging the Jabil team's strong execution this quarter, which delivered solid results to start FY 2025 amid a highly dynamic environment. The company continues to demonstrate high resilience and is well positioned for future revenue growth, margin enhancement and robust free cash flow generation. With that, let's turn to the next slide for our Q2 FY 2020 5 guidance.

Beginning with revenue by segment, we anticipate revenue for our regulated industries will be $2,700,000,000 down 8% year on year, reflecting continued softness in the renewable energy and EV markets. For our Intelligent Infrastructure segment, we expect revenue for the quarter to be $2,400,000,000 up 8% year over year, reflecting broad based growth across capital equipment, advanced networking, cloud and data center infrastructure markets. In our Connected Living and Digital Commerce segment, revenues are expected to be $1,200,000,000 This is down 20% year over year mainly due to our mobility divestiture. Total company revenue for Q2 is expected to be in the range of $6,100,000,000 to $6,700,000,000 Core operating income for Q2 is estimated to be in the range of $286,000,000 to $346,000,000 GAAP operating income is expected to be in the range of $183,000,000 to $263,000,000 Core diluted earnings per share is estimated to be in the range of $1.60 to $2 GAAP diluted earnings per share is expected to be in the range of $0.69 to 1 $0.27 Net interest expense in the 2nd quarter is estimated to be approximately $60,000,000 And for FY 'twenty five, we now expect it will be $235,000,000 down from what we thought in September.

Our core tax rate for Q2 and for the year is expected to be 21%. With that, I'd like to thank you for your time this morning and for your interest in Jabil. I'll now turn the call over to Mike to dive deeper into our strategic growth areas and the exciting opportunities ahead.

Good morning and thank you for joining our call today. As Greg just highlighted, our 1st fiscal quarter results came in stronger than we had anticipated, driven mainly by incremental strength in our Intelligent Infrastructure segment. As a result, the team was able to deliver strong core EPS, margins and cash flows during the quarter. Furthermore, we distributed the majority of the generated free cash flow to shareholders via our dividend and buyback programs. To summarize, I'm extremely pleased with these financial results and the positive trajectory of our year.

As a management team, we're collectively working together to deliver strong core operating margin expansion and consistent free cash flow growth, which will allow us to continue to invest in the business and return capital to shareholders. In a few moments, I'll provide some details regarding our updated outlook for the balance of the year. But before I jump into those details, I want to take a moment to thank the global team here at Jabil for their commitment, dedication and hard work in a highly dynamic operating environment. As the world continues to evolve, this team is working hard to ensure Jabil remains nimble, agile and resilient for many years to come. For instance, during the quarter, our team opened a large scale manufacturing site in Croatia, which currently supports a European based automotive OEM.

And beginning in FY 'twenty seven, the site will also support our healthcare customers, specifically in the GLP-one drug delivery space as demand continues to exceed supply. The team also relocated and ramped multiple existing programs to the U. S. As many of our customers continue to seek a broader geographic manufacturing solution. We added to our capabilities during the quarter too through the acquisition of Mycros Technologies, a leader in engineering liquid cool solutions.

These capabilities, we believe, will support our future growth in verticals in both the data center ecosystem and other end markets that require thermal management like automated test equipment for semiconductors, batteries, energy storage systems and electric vehicles. And all the while, our team was bouncing through major hurricanes in St. Pete, Asheville and Hendersonville. I would like to take this opportunity for a quick shout out to our teams for not only taking care of each other, but also taking care of our communities during this trying time. The Jabil culture was truly on display.

I'd now like to shift our focus to fiscal year 2025 and our outlook by both end market and segment. I'll begin with regulated market segment where anticipate continued year over year weakness in automotive and transportation driven by lower global sales of electric vehicles. Over the longer term, we feel comfortable that our automotive and transportation business will improve as our technology, agnostic capabilities position us to capture growth in both EV and hybrid vehicle solutions. In Healthcare and Packaging, as we previously anticipated, we continue to execute on a pipeline of new wins, including the launch of GLP-one auto injectors and continuous glucose monitors. As a reminder, due to the long qualification cycles in healthcare, it often takes 18 to 24 months to ramp these programs.

However, once these programs are ramped, they generally enjoy very long product life cycles and multiyear stable returns. Renewables and Energy Infrastructure, the energy infrastructure space continues to do well with solid growth in battery power management. This growth is largely offset by previously indicated weakness in renewable applications, primarily focused on solar. Throughout the solar downturn, we've worked hard to better position ourselves as we wait for recovery in the end market. This includes share gains with key customers and operating cost reductions.

In the near term, renewables continue to weigh on segment core operating margins. Turning to Intelligent Infrastructure segment, which is driving the majority of our growth in FY 2025. In capital equipment, the rise of AI is driving demand for semiconductor fabrication and test equipment, which we expect to continue throughout FY 2025 and beyond. In addition, in the data center space, we continue to deepen our existing relationship with our largest hyperscaler with continued strength in their custom AI driven GPU rack integration business. As we had previously indicated, we've also won programs with the new hyperscaler in the silicon photonic side of our business.

Over the longer term, we anticipate that our capability investment in liquid cooled systems will allow us to participate in solutions that address the immense power and thermal demands of AI service. Year on year, we now expect the Intelligent Infrastructure segment to be up by approximately $1,500,000,000 after adjusting for the exit of legacy networking businesses last fiscal year. Our Connected Living and Digital Commerce segment has 2 distinct aspects. Connected Living, which largely focuses on consumer oriented devices remains under pressure, while at the same time we remain bullish on our digital commerce business, which has been driven higher by the automation of the retail and warehouse experience. Now let's discuss our global network of factories, which we believe is a significant competitive advantage.

Consistent with my comments in September, we placed considerable value on maintaining a large scale global manufacturing footprint. And as the geopolitical situation continues to evolve, our ability to adapt combined with our designation as a U. S. Domicile manufacturing service provider and our significant U. S.

Footprint is becoming increasingly important for our customers. And in my opinion, Jabil is among the best positioned companies in the world to help customers navigate these complexities. Next, even though it's very early days, I would like to spend a couple of minutes on a topic that has received considerable attention over the past few weeks, potential tariff implications. Here's what we can share as of today. As a reminder, while tariffs may impact end customer demand, any changes in tariff costs have historically been largely a pass through cost for Jabil.

For starters, most of our business in China is predominantly local for local or local for regional with a very small portion of our revenues generated from that region being U. S. Bound. Secondly, in Mexico, our footprint has evolved over the past 8 years as many of our customers sought manufacturing solutions that were closer to the final customer. We remain well prepared due to proximity and corporate resources for any reverse lift and shift of operations from Mexico to the U.

S. 3rd, our U. S. Manufacturing footprint has never been bigger than it is today. And while I do feel there will be some challenges to overcome such as labor, our investments and experience in tried and tested automation lines and robotics will certainly help expedite any transfers.

I personally feel there is no company better positioned than us to grow manufacturing in the U. S. Of course, we'll have to see how all this plays out over the next several years. But right now, I see our large scale manufacturing footprint as a major competitive advantage. Shifting now to full year guidance.

I'd now like to take a moment and explain why we expect higher earnings and margins in the back half of the fiscal year as reflected in our Q2 and full year guidance. This is mainly due to the following drivers. 1st, as a reminder, our Mobility divestiture 1st, as a reminder, our mobility divestiture last year makes the historical seasonality more pronounced. And then the ongoing program ramps in the first half of the year in cloud, data center infrastructure and warehouse automation have weighed on core operating margins. Additionally, the anticipated continued recovery of our relatively higher margin semi capital equipment business will contribute to higher earnings in the second half.

And lastly, our cost optimization initiatives, which we discussed during our last call, will also deliver improvements in margins and operational efficiency as the year progresses. For all these reasons, we anticipate stronger earnings and margins in the second half of the year. Putting it all together for the coming year, we now anticipate approximately $27,300,000,000 in revenue with core operating margins of 5.4%. Core earnings per share now are expected to be $8.75 Importantly, we continue to foresee another robust year of free cash flow generation in FY 2025 of $1,200,000,000 In closing, I want to say thank you to the entire Jabil team for your dedication and to our investors for your continued trust and support. I would like to wish everyone a safe, happy and prosperous New Year.

I will now turn the call back over to Adam.

Thanks, Mike. That concludes our prepared comments. Operator, we're now ready for Q and A.

Thank you. And I'll be conducting a question and answer session. Our first question today is coming from Ruplu Bhattacharya from Bank of America. Your line is now live.

Hi. Thank you for taking my questions and congrats on the quarter. Can you talk about the relative margins of each segment and what we should expect for fiscal 2025? So for regulated industries and intelligent infrastructure and connected living, how do you how should we think about margin recovery in each of these segments? Which segment has the most upside to margins?

Thanks, Ruplu. So I think for the 3 different segments, I would expect margins to be north of 5% for all 3 of them. Right now, we're seeing some level of underutilization of capacity on our EV side and on the renewable side, which is a little bit of a drag. But that means the opportunity for increased margins going forward once these end markets recover a little bit is much higher there. I do see our intelligent infrastructure piece about 5 percent as well.

I think that's where we see the biggest level of growth over the next few years as well. So doing relatively well on that whole piece with capital equipment. Obviously, we're expecting a bit of a recovery in the second half of the year, which is still very much in play today. And our margins, as you're aware, there are slightly higher than our other end markets. From a Connected Living perspective, look, that's mainly all consumer driven.

There's a high level of seasonality, especially with Equity One doing really well on the consumer side as always. I think the digital commerce piece is a bit that's driving the future. That will be high margin. It's new product lines, new technologies, new design engineering capabilities in their high-tech sort of stuff going on in that end market. And I feel really good about that having double digit growth rates, albeit from lower base.

But the opportunities are there in all three segments today.

Okay. Thanks for that. Mike, has your expectation for AI related revenues changed? I think you had guided $6,000,000,000 last time for AI revenues in fiscal 2025. But since cloud is doing well, do you think your revenues can related to AI can be higher?

And can you talk about some of the new opportunities you have in this segment going forward?

Sure. So I do think I think last time you said it was $5,000,000,000 to $6,000,000,000 We did increase that to $6,500,000,000 So we all 500 $1,000,000 of that increase is in the AI space. About $100,000,000 of that is being driven by semi cap. We already had a recovery baked in, in semi cap. So $100,000,000 there.

And I reckon about $400,000,000 is on the data cloud infrastructure piece where we seem to be doing really well with our largest hyperscaler. We've actually deepened our relationship there. So again, the AI piece is the one that's going to drive a lot of our future growth. Dollars 1,500,000,000 year on year is a big number on that $5,000,000,000 base from last year. So that's a 30% growth rate right there.

Okay. Got it. And maybe the last one for me. Can you talk about your capital allocation plans? How should we think about the cadence of buybacks?

You did can you talk a little bit more about the acquisition you talked about? What is the revenue contribution from that? And what is your focus on further M and A in this year? Thanks.

Yes. Good morning, Ruplu. This is Greg. I'll take the first part of that question. So from a capital allocation perspective, we're still going with approach of 80% of our free cash flow going to share buybacks.

We are committed to completing our $1,000,000,000 share authorization in FY 2025. I would say, from a buyback perspective, we'll be weighted a little bit more heavily in the first half versus the second half, with the execution of that. But again, we feel share buybacks is a really good use of cash for Jabil as we continue to feel our shares are undervalued and still have a guidance of $110,000,000 to $112,000,000 on the lasso for the year.

And on the acquisition piece, Ruffalo, I think you're referring to the Micros liquid cooling acquisition that we did. It was all around core thermal engineering, cold plate manufacturing capabilities. There's a whole bunch of engineers who've been designing cold plates for a very, very long time. We're really excited to have that team join Jabil. The revenues that we've acquired are relatively small.

That's not we did not acquire it for revenue direct revenue, I should say. It was the engineering capability. This opens up a complete vertical solution for us for hyperscalers, for other cloud solutions and the whole data center infrastructure piece as well. The opportunity here is huge. Right now, I would temper the revenues a little bit as a from a direct acquisition perspective.

But over the next few years, as we expand vertically in that segment, I think we'll see the benefits of this acquisition for sure.

Thanks for all the details. Congrats on the results.

is coming from Matt Sheerin from Stifel. Your line is now live.

Yes. Thank you. Good morning, everyone. Mike, I wanted to follow-up on your comments regarding the hyperscale customers. Could you you mentioned that you're deepening your relationship with your largest customer.

Could you elaborate? Does that mean you're just winning more business? Or are you doing other things for that customer? And then in terms of that second hyperscale customer that you announced on the Photonics side, could you give us the potential size of that opportunity? Thanks.

Sure. So I think our current customer that I referred to, yes, we're winning new business. We've been working with them for a very long time. There's a very good relationship. There's a very good sort of performance that we've sort of performed for that customer.

So definitely good growth potential there. As it relates to the second hyperscaler that was more in the silicon photonics piece, not on the data cloud infrastructure side. It's mainly 100, 200, 400 gs right now that we're working on. We're actually looking at sort of quoting 800 in the first half of twenty twenty five. And then $1,600,000 as we get into $25,000,000 or towards the end of twenty twenty five.

And if you recall, we made this acquisition from Intel, I think it was last year. We're seeing the benefits of that acquisition. It's always been our play. We go out and acquire a capability. That's what we did with this one as well.

And I'm glad to see that it's actually paying really good dividends based on what we paid for.

Thank you. And is part of the strategy with that new customer, for instance, to cross sell the systems integration skill sets that you have, and as you look at other hyperscale customers as well?

Yes. I think the if you think of it as an ecosystem, one of the things we've always done with our intelligent infrastructure strategy, we're not product based. We don't go in and try and double down on product or just focus on single products. We're providing an engineering design architecture sort of platform. Then we co design with our customers.

We integrate all sorts of vertical solutions. So it's not just a rack and stack sort of business. There's a very high level of complexity and engineering linked to that.

Okay. Thanks for that. And then for my second question regarding the inventory, you've done a very good job of bringing down inventory, improving cash flows. It looks like you're guiding sort of flattish inventory. How should we expect the back half given that you're going to have higher revenue growth in the back half of fiscal twenty twenty five?

Yes. Hi, this is Greg. On inventory, again, there's some cyclicality during the year, but we still feel the range on our net inventory number will be between 55 60 days. And in the back half, we would say that would be in the lower part of that range. So we still feel confident we're able to manage inventory to those levels.

Okay, great. Thanks very much and happy holidays.

Thank you. Next question is coming from Steven Fox from Fox Advisors. Your line is now live.

Hi, good morning. A couple of questions from me. First of all, Mike, can you talk a little bit more about the U. S. Footprint from a 2 perspectives?

1, you mentioned that you moved some more programs into U. S. In the quarter. Can you give us a little bit color on what was moved in? And then looking ahead, how do we think about just your ability to meet, say, urgent needs to move production into the U.

S. Say, over the next 6 to 9 months versus your willingness to sort of add capacity as we see some changes

Sure. So the movements in the U. S, the ramps that we've had here are mainly in the battery power management piece. We've actually had some businesses ramp even on the data cloud infrastructure side. Look, we've always if you look at the sites that we've grown over the last few years, I think I mentioned on my last call, the number of sites that we have in the U.

S. Now is 30, three-zero. That's a big number. So we're constantly moving business across. That's our model.

We move manufacturing to wherever the customer wants to go. And there does seem to be more interest in the U. S. Today, which we're happy to deliver. I think we're really, really well positioned.

If you think of our geography, you think of the locations that we have, you think of the knowledge that we have, you think of all the people, local expertise, etcetera. I think we're well positioned for any sort of move. And I think that's the point I was trying to bring to the table in my prepared remarks. I think this is a really good opportunity for a company like Jabil because customers and even non customers or potential customers will need help. And that's our model right now.

So I think we'll be in a good position to help. Can you repeat your second question, Steve?

I'm just wondering sort of like how capacity is currently to meet some of these needs in the near term versus maybe you have to start considering expansions at some of your sites and

Yes. So I think expansion and so one of the things we try and do is most of our factories have land where we have first right of refusal on the adjacent pieces of land. So we can do that. I'll tell you one thing. We opened up a factory in St.

Petersburg. I think it was in a record time. It was in less than 6 months. We went down, hired a whole bunch of people, set up the factory floors. So we have the expertise, we have the knowledge, we have the capabilities, we have that experience.

Manufacturing is our core. So happy to set anything up for anyone. Today, the capacity, we have some level of surplus capacity, but it's not huge. So there will be some pockets of expansion if it comes down to it.

Great. That's helpful. And then on the cloud piece, you covered a lot of the details already. But I was just curious specifically as your largest cloud customer moves to a new silicon, like what does that mean for Jabil in general as we see these advanced silicon to roll out? Is that helping your business, neutral?

Yes, Steve. So it's early days, but I do think it will be a driver of growth, a driver of new business. I think it's I think that the custom chip will drive new revenues for Jabil. I can't sort of put my finger on what exactly that means for revenue. We'll provide more color as we move forward through FY 2025.

For now, we've given our best estimate for FY 2025. I don't think FY 2025 is going to change that much. We might have a little bit more growth rate in FY 2026. And then beyond, I do think there's a handful of opportunity to expand that relationship further.

Thank you, Steve. Happy holidays to you as well.

Thank you. Our next question is coming from Mark Delaney from Goldman Sachs. Your line is now live.

Yes. Good morning, guys. Thanks so much for taking the questions. I guess first to follow-up on the tariff discussion. Can you give us a better sense of how costs compare in the U.

S. Relative to Mexico, maybe for example, fully loaded labor costs in the U. S. Versus Mexico? And as you're engaged with customers and they're thinking through potentially having to move some of their capacity, do you think the cost is something that they can get that they'd be able to overcome?

Or would they more generally just look to absorb tariffs and maybe keep their business in Mexico when they think about some of the cost differential?

Thanks, Ron. The end markets that we're in, I think we need to sort of look at each end market specifically. There are certain end markets which are more price elastic than others, easier to pass on sort of cost increases there. Obviously, if you move from Mexico to the U. S, the costs will be higher.

The question is, how much of that is it? Is it going to be more than tariffs? Can it be passed on? Can it be absorbed by our customers? I'll reiterate Jabil, this is a pass through cost for us.

It's not something that we absorb. If you actually look back from a historical perspective, we've almost doubled our revenues ex the mobility divestiture since the last time this administration took office. So I see this as a big positive. I'm not suggesting we grew because of it, but we've grown quite a bit. So it's a huge positive.

I think the whole U. S. Domicile corporation piece, the capabilities that we have across the different end markets. But above all, when you're moving manufacturing, automation, robotics, they play a big part. AI, ML that we use across our sites play a huge part in all those decisions.

So I think from an automation and robotics standpoint, we're really well positioned to move our business across.

Thanks for those thoughts, Mike. My other question is just trying to better conceptualize how you're seeing the business for the full year relative to your prior outlook. Company B earnings relative to its guidance in 1Q by $0.15 You took up the full year EPS guidance by $0.10 So it does imply, at least just from the basic math, that there's slightly lower expectation for earnings for the next three quarters relative to what you'd previously been expecting. Are you actually seeing any meaningful change over the next three quarters in the business environment? Or is that just putting too fine a point on the old versus new EPS guidance?

So I think it's puts and takes, Laurent. The piece that we're most excited about is the data cloud infrastructure. We took that up. I think if you look at some of the other end markets, we adjusted our automotive down a little bit, post election. Our automotive down a little bit post election.

There's uncertainty, especially on the EV side. As we transition from EVs to hybrids, that comes back. So we have definite we have the capabilities to help companies navigate this transition from EV to hybrid, maybe hybrids come back to EVs. We'll be right in the middle of it, but for FY 2025, we're just being a little bit more prudent. Renewables is another one.

Jabil (JBL) Q1 2025 Earnings Call Transcript

Company Participants