Jabil Inc (NYSE:JBL) stock fell 1.98% (As on December 18, 11:22:21 AM UTC-4, Source: Google Finance) though the company reported strong first-quarter fiscal 2026 results, with both bottom and top lines surpassing the analyst expectations. In the fiscal first quarter, the Regulated Industries segment contributed 37% to revenues. The 4% year-over-year growth is driven by healthy traction in the healthcare & packaging end market. The Intelligent Infrastructure segment, which now represents 46% of total revenue, delivered exceptional 54% year-over-year growth while maintaining a solid 5.2% core margin. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales. About 17% of the total revenues came from the Connected Living & Digital Commerce segment. The 10% year-over-year decline is due to soft demand for consumer-driven products. Strong growth in the digital commerce market partially reversed this trend. In the first quarter of fiscal 2026, Jabil generated $323 million of net cash from operating activities compared to $312 million a year ago. As of Nov. 30, 2025, the company had $1.57 billion in cash and cash equivalents, with $2.38 billion of notes payable and long-term debt. Free cash flow stands at $272 million compared to $226 million a year ago.

JBL in the first quarter of FY26 has reported the adjusted earnings per share of $2.85, beating the analysts’ estimates for the adjusted earnings per share of $2.72, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $8.3 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $8.07 billion. Non-GAAP operating income aggregated $454 million, up from $347 million in the year-ago period. Non-GAAP operating margin was 5.5% up from the year-ago quarter’s figure of 5%.

For fiscal 2026, revenues are now projected at $32.4 billion. Non-GAAP earnings per share are expected to be $11.55. The company is expected to generate more than $1.3 billion in adjusted free cash flow. The company’s AI-related revenue is projected to reach $12.1 billion in FY2026, representing a 35% year-over-year growth.

For Q2 FY26, Jabil expects net revenue between $7.5 billion and $8.0 billion, with core diluted earnings per share ranging from $2.27 to $2.67. The Intelligent Infrastructure segment is projected to remain the largest contributor to revenue at $3.76 billion, followed by Regulated Industries at $2.78 billion and Connected Living & Digital Commerce at $1.21 billion.