AI Takeaway
JBL delivered strong Q3 FY2026 results with revenue rising 11.8% YoY to $8.75B and net income surging 23.9% to $275M, driven by gross margin expansion to 9.5%, though leverage remains elevated with a debt-to-equity ratio of 17.0x.
Revenue
$8.75B
++11.79% YoY
EPS (Basic)
$2.61
++27.32% YoY
Gross Margin
9.5%
++0.76% YoY
Operating Income
$445M
++10.42% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 11.8% YoY to $8.75B in Q3 FY2026, up from $7.83B in the prior-year period, reflecting strong demand across JBL's manufacturing services segments and continued customer ramp-ups.
Source: Source: 10-Q Income Statement
Gross margin improved 76 basis points YoY to 9.46%, with gross profit rising 21.6% to $828M, outpacing revenue growth and indicating improved operational efficiency and mix shift toward higher-value services.
Source: Source: 10-Q Income Statement / Key Ratios
SG&A expenses rose 24.1% YoY to $340M, growing faster than revenue, which partially offset gross margin gains and kept operating margin essentially flat at 5.09% versus 5.15% in the prior year.
Source: Source: 10-Q Income Statement
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Upgrade to unlockJBL's debt-to-equity ratio stands at an elevated 17.0x, with total liabilities of $22.49B against stockholders' equity of only $1.32B. This level of leverage amplifies financial risk and limits flexibility in a rising interest rate or demand downturn environment.
Source: Source: 10-Q Balance Sheet / Key Ratios
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Upgrade to unlockReported EPS of $3.16 versus the $3.13 analyst consensus — a +0.9% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.75B | $7.83B | +11.79% |
Cost of Revenue | $7.92B | $7.15B | +10.86% |
Gross Profit | $828M | $681M | +21.59% |
Operating Income | $445M | $403M | +10.42% |
Net Income | $275M | $222M | +23.87% |
EPS (Basic) | $2.61 | $2.05 | +27.32% |
EPS (Diluted) | $2.59 | $2.03 | +27.59% |
R&D Expense | $9M | $7M | +28.57% |
SG&A Expense | $340M | $274M | +24.09% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $23.82B | $18.59B | +28.15% |
Current Assets | $18.16B | $13.78B | +31.75% |
Total Liabilities | $22.49B | $17.3B | +30.01% |
Current Liabilities | $18.51B | $14.02B | +32.08% |
Stockholders' Equity | $1.32B | $1.28B | +2.96% |
Cash & Equivalents | $1.36B | $1.52B | -10.70% |
Long-Term Debt | $3.38B | $2.88B | +17.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.27B | $1.05B | +20.63% |
Investing Cash FlowYTD | $-1.15B | $-578M | -98.27% |
Financing Cash FlowYTD | $-701M | $-1.17B | +39.83% |
Dividends PaidYTD | $27M | $28M | -3.57% |
Share BuybacksYTD | $891M | $975M | -8.62% |
D&AYTD | $645M | $622M | +3.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 9.5% | 8.7% | +0.76% |
Operating Margin | 5.1% | 5.1% | -0.06% |
Net Margin | 3.1% | — | — |
ROE | 20.8% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $0.981 | — | — |
Debt to Equity | $17.001 | — | — |
JBL delivered a strong Q2 FY2026 with revenue surging 23.1% YoY to $8.28B and net income nearly doubling to $223M, driven by robust top-line growth and meaningful margin expansion.
JBL delivered strong Q1 FY2026 results with revenue surging 18.7% YoY to $8.3B and net income jumping 46% to $146M, driven by robust top-line growth and improved operating leverage, though the balance sheet shows elevated leverage and a current ratio below 1.
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JBL delivered strong Q3 FY2026 results with revenue of $8.75B, up 11.8% YoY, and net income of $275M, up 23.9% YoY. Diluted EPS came in at $2.59, a 27.6% improvement over the prior year's $2.03, driven by gross margin expansion and a lower share count from buybacks.
JBL's revenue grew 11.8% YoY to $8.75B in Q3 FY2026, reflecting strong demand for its electronics manufacturing services. Gross profit grew even faster at 21.6% to $828M, suggesting improved product/service mix and operational efficiency contributed alongside volume growth.
The two most prominent risks are JBL's extremely high leverage (debt-to-equity of 17.0x with total liabilities of $22.49B) and a current ratio below 1.0x (0.98x), meaning short-term liabilities exceed short-term assets. Additionally, SG&A expenses grew 24.1% YoY — faster than revenue — which could pressure margins if not controlled.
Yes, JBL is profitable with net income of $275M in Q3 FY2026 and a net margin of 3.14%, typical for a contract manufacturer. Year-to-date operating cash flow of $1.27B (up 20.6% YoY) confirms strong cash generation, though higher investing outflows of -$1.15B YTD have reduced implied free cash flow significantly.
On a fiscal year-to-date basis through Q3 FY2026, JBL returned $891M via share buybacks (down 8.6% from $975M in the prior-year period) and $27M in dividends, totaling approximately $918M in shareholder returns. The reduced buyback pace reflects higher capital investment spending during the period.