Jabil Inc (NYSE:JBL) stock rose 1.33% (As on March 19, 11:37:28 AM UTC-4, Source: Google Finance) after the company reported strong second-quarter fiscal 2026 results, with both bottom and top lines surpassing the market expectations. In the fiscal second quarter, the Regulated Industries segment contributed 36% to revenues. The 10% year-over-year growth is driven by healthy traction in the renewable energy infrastructure, healthcare & packaging end markets. The Intelligent Infrastructure contributed 49% of total revenues, up 52% year over year. The healthy demand in the Capital Equipment, AI-related Cloud and Data Center Infrastructure verticals supported the net sales. About 15% of the total revenues came from the Connected Living & Digital Commerce segment. The 8% 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 second quarter of fiscal 2026, Jabil generated $411 million of net cash from operating activities compared to $334 million a year ago. As of Feb. 28, 2026, the company had $1.83 billion in cash and cash equivalents, with $3.37 billion of notes payable and long-term debt. Adjusted free cash flow stands at $360 million. Non-GAAP net income in the reported quarter was $288 million compared with $215 million in the prior-year quarter.

JBL in the second quarter of FY 26 has reported the adjusted earnings per share of $2.69, beating the analysts’ estimates for the adjusted earnings per share of $2.54, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $8.3 billion in the second quarter of FY 26, beating the analysts’ estimates for revenue of $7.82 billion. The company reported a top-line expansion year over year, owing to healthy traction in the data center infrastructure, capital equipment and healthcare end-markets. Gross profit was $746 million compared with $576 million in the year-ago quarter. Non-GAAP operating income aggregated $436 million, up from $334 million in the year-ago period. Non-GAAP operating margin was 5.3%, up from the year-ago quarter’s figure of 5%.

Management expects AI data center infrastructure, healthcare and advanced warehouse and retail automation to be the major growth drivers in 2026. For fiscal 2026, revenues are now projected at $34 billion, up from the prior estimate of $32.4 billion. Non-GAAP earnings per share are expected to be $12.25, up from the prior estimate of $11.55. The company is expected to generate more than $1.3 billion in adjusted free cash flow.