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Jabil (JBL -2%) is trading modestly lower following its Q2 (Feb) report, despite delivering another strong quarter featuring its sixth consecutive double-digit EPS beat. The EMS provider posted robust revenue growth and issued upbeat guidance, although some investors appear underwhelmed by a slight deceleration in its key segment outlook.

• Revenue rose 23.1% yr/yr to $8.28 bln, well ahead of analyst expectations, driven by broad-based strength across multiple end markets. Jabil reported its sixth straight double-digit EPS beat, reinforcing strong execution and operating leverage. The company raised FY26 EPS and revenue guidance, citing increased confidence following strong Q2 results.
• Q3 (May) guidance was also solid, with the midpoint of EPS and revenue outlook coming in above Street expectations.
• Intelligent Infrastructure (49% of revenue) was the standout segment in Q2, surging 52% yr/yr to roughly $4.0 bln, above prior guidance, with strength across cloud, data center infrastructure, networking, and capital equipment.
• Regulated Industries (36% of revenue) grew 10% yr/yr to $3.0 bln, also topping guidance, driven by strength across renewables, healthcare, and automotive/transport markets.
• Connected Living & Digital Commerce revenue declined 8% yr/yr to $1.2 bln, reflecting planned program attrition and portfolio optimization, partially offset by growth in automation and robotics.
• For Q3, Jabil guided Intelligent Infrastructure revenue to $4.2 bln (+22% yr/yr), Regulated Industries to $3.1 bln, and Connected Living & Digital Commerce to $1.2 bln (-10% yr/yr).

Briefing.com Analyst Insight:

Jabil delivered an impressive quarter with strong top-line growth, consistent EPS outperformance, and raised full-year guidance, reinforcing its position as a key beneficiary of secular demand in cloud and AI-driven infrastructure. The Intelligent Infrastructure segment continues to lead the way, supported by robust investment in data centers, networking, and capital equipment. However, the market's muted reaction suggests expectations had already been set quite high—particularly for Intelligent Infrastructure. The projected +22% yr/yr growth for Q3, while still strong, represents a step down from the outsized growth seen in prior quarters, raising questions about the pace of normalization in this key segment. That said, Jabil's diversified portfolio, strength in Regulated Industries, and continued exposure to long-term themes like AI infrastructure and automation provide a solid foundation. The story increasingly hinges on whether Intelligent Infrastructure can sustain elevated growth rates or transitions into a more moderate—but still healthy—trajectory as comps become more challenging.