Jabil Inc. reported strong preliminary, unaudited financial results for its second quarter of fiscal year 2025, surpassing Wall Street estimates for both profit and revenue. The company achieved net revenue of $6.728 billion, representing a 3% year-over-year increase when excluding approximately $250 million from the divested Mobility business in the prior year. Core operating income was $334 million, yielding a 5% core operating margin, and core diluted earnings per share reached $1.94, up $0.26 from Q2 FY24.
The Intelligent Infrastructure segment was a primary growth driver, with revenue up 18% year-over-year, fueled by strong demand in AI-related cloud, data center infrastructure, and capital equipment markets. Jabil now projects its AI-associated business to reach approximately $7.5 billion in revenue for FY25, an approximate 40% year-over-year increase. Jabil's stock rose after the announcement, and management highlighted its U.S. domicile and significant U.S. footprint as a competitive advantage for customers navigating geopolitical complexities and potential tariffs.
Building on these results, Jabil once again raised its fiscal year 2025 outlook, now expecting approximately $27.9 billion in net revenue and core diluted earnings per share of $8.95. The company also anticipates adjusted free cash flow to exceed $1.2 billion for the year. For the third quarter of fiscal year 2025, Jabil provided guidance of $6.7 billion to $7.3 billion in net revenue and core diluted earnings per share between $2.08 and $2.48.
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