Jabil’s second quarter saw a strong positive reaction from the market, as the company delivered above-consensus results fueled by robust demand in its Intelligent Infrastructure segment. Management highlighted that growth was propelled by accelerated spending in AI-related cloud and data center infrastructure, as well as solid contributions from capital equipment and warehouse automation. CEO Mike Dastoor credited the company’s regionalized manufacturing model and increased U.S. footprint for helping Jabil navigate ongoing geopolitical and supply chain complexities.

Is now the time to buy JBL? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Jabil’s Q2 Earnings Call

• Ruplu Bhattacharya (Bank of America) asked about expected growth rates for AI-related revenues and segment margins in future years. CEO Mike Dastoor deferred detailed guidance to the September investor briefing but described capital equipment as accretive and 5G communications as margin-dilutive.
• Mark Delaney (Goldman Sachs) questioned if recent strong sales reflected pre-tariff buying. Dastoor replied that most upside came from U.S.-centric segments and saw minimal evidence of significant pull-ins tied to tariff concerns.
• Steven Fox (Fox Advisors) asked why Intelligent Infrastructure margins were flat despite revenue growth. CFO Greg Hebard explained that incremental investments and business mix muted margin expansion, with expectations for improvement as scale is reached.
• Melissa Fairbanks (Raymond James) inquired about the rationale for U.S. expansion and potential for other segments to move production stateside. Dastoor highlighted the benefits of regionalization and identified healthcare and digital commerce as possible future candidates for U.S. production.
• David Voigt (UBS) asked about the necessity and potential revenue supported by the $500 million site investment. Dastoor said existing capacity supports near-term growth, but the new site will enable longer-term expansion, with financial contribution expected after 2026.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be monitoring (1) execution of the new U.S. facility buildout and its effect on customer wins, (2) the pace of AI and data center infrastructure demand as new technologies like liquid cooling roll out, and (3) stabilization or recovery in lagging end markets such as EVs and renewables. Progress in healthcare and automation will also be key indicators of Jabil’s ability to diversify growth.

Jabil currently trades at $208.69, up from $181 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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