Jabil Inc. (JBL)- Trouble Brewing Beneath the Beat

We see warning signs starting to pop up in the company’s recent results

Jabil (JBL) is a leading provider of electronics and manufacturing design services and systems. The company’s Q2’25 non-GAAP EPS of $1.94 topped consensus estimates by 11 pcs while sales surpassed targets by 5%. This was well-received by the market when announced on 3/20, but the company was hit hard by the Liberation Day tariff announcements on (April 2.) However, the stock has since regained that lost ground and more.

We wrote JBL as part of a review of the earnings quality of the Electronic Manufacturing Services industry we did for institutional clients last summer. At the time, we gave JBL an overall clean bill of health from an earnings management perspective. However, our concern has grown over the last couple of quarters as the quality of the company’s more recent earnings has eroded in our view.

Let’s take a closer look behind JBL’s Q2’25 results…

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