Jabil JBL · USD

Commitments and ContingenciesLegal ProceedingsThe Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Income TaxesProvision for Income TaxesIncome (loss) before income tax expense is summarized below (in millions): Fiscal Year Ended August 31, 202520242023Domestic$(255)$(366)$(315)Foreign1,147 2,117 1,577 Total$892 $1,751 $1,262 Income tax expense (benefit) is summarized below (in millions): Fiscal Year Ended August 31, 202520242023Current:Domestic – federal$(16)$— $1 Domestic – state15 5 2 Foreign356 442 350 Total current355 447 353 Deferred:Domestic – federal(15)12 (2)Domestic – state(5)(2)4 Foreign(100)(94)89 Total deferred(120)(84)91 Total income tax expense$235 $363 $444 Reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is summarized below: Fiscal Year Ended August 31, 202520242023U.S. federal statutory income tax rate21.0 %21.0 %21.0 %State income taxes, net of federal tax benefit0.6 (0.3)0.2 Impact of foreign tax rates(1)(2.0)0.1 (1.8)Permanent differences(0.3)0.5 (0.5)Income tax credits(1)(1.7)(0.7)(0.5)Valuation allowance(2)1.0 3.5 1.1 Equity compensation1.1 (0.4)0.5 Impact of intercompany charges and dividends1.9 (0.7)2.4 Global Intangible Low-Taxed Income1.4 1.9 0.8 Change in indefinite reinvestment assertion(3)0.3 0.4 11.7 Divestiture of businesses(4)2.3 (5.9)— Other, net0.8 1.3 0.3 Effective income tax rate26.4 %20.7 %35.2 %(1)The Company has been granted tax incentives for various subsidiaries in Malaysia, Singapore, Vietnam, Brazil, and Israel, which primarily expire at various dates through fiscal year 2030 and are subject to certain conditions with which the Company expects to comply. Tax incentives resulted in a tax benefit of approximately $75 million ($0.68 per basic weighted average shares outstanding), $54 million ($0.44 per basic weighted average shares outstanding) and $74 million ($0.56 per basic weighted average shares outstanding) during the fiscal years ended August 31, 2025, 2024, and 2023, respectively. (2)For the fiscal year ended August 31, 2025, the valuation allowance change was primarily due to the change in deferred tax assets for sites with existing valuation allowances. (3)As a result of certain operations being classified as held for sale, the Company made a change to its indefinite reinvestment assertions for the fiscal year ended August 31, 2023. (4)For the fiscal year ended August 31, 2025, the divestiture of businesses is primarily related to the divestiture of the Italy operations.

LeasesThe following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the periods indicated (in millions):Financial Statement Line ItemAugust 31, 2025August 31, 2024AssetsOperating lease assetsOperating lease right-of-use assets$462 $360 Finance lease assets(1)Property, plant and equipment, net391 378 Total lease assets$853 $738 LiabilitiesCurrentOperating lease liabilitiesCurrent operating lease liabilities$93 $93 Finance lease liabilitiesAccrued expenses199 119 Non-currentOperating lease liabilitiesNon-current operating lease liabilities388 284 Finance lease liabilitiesOther liabilities166 235 Total lease liabilities$846 $731 (1) Net of accumulated amortization of $136 million and $162 million as of August 31, 2025 and 2024, respectively.The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in millions):Fiscal Year Ended August 31, 20252024Operating lease cost$119 $118 Finance lease costAmortization of leased assets42 50 Interest on lease liabilities11 10 Net lease cost(1)(2)$172 $178 (1)Lease costs are primarily recognized in cost of revenue.(2)Excludes immaterial amounts of short term leases, variable lease costs and sublease income.The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the periods indicated: August 31, 2025August 31, 2024Weighted-average remaining lease termWeighted-average discount rateWeighted-average remaining lease termWeighted-average discount rateOperating leases7.7 years4.39 %5.7 years3.80 %Finance leases6.5 years3.57 %5.2 years4.23 %The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):Fiscal Year Ended August 31, 20252024Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows for operating leases(1)$104 $116 Operating cash flows for finance leases(1)$11 $10 Financing activities for finance leases(2)$142 $111 Non-cash right-of-use assets obtained in exchange for lease liabilities:Operating leases$208 $109 Finance leases$136 $163 (1)Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows.

Business Acquisitions and DivestituresAcquisitionsFiscal Year 2026On September 1, 2025, the Company completed the acquisition of Rebound Technologies Group Holdings Limited (“Rebound Technologies”) for cash consideration transferred of $134 million. Rebound Technologies is a global supply chain service provider headquartered in the United Kingdom offering end-to-end solutions including global sourcing, data driven analytics, proactive shortage management and obsolescence strategies. The final purchase price is subject to adjustment based on conditions within the purchase agreement.Fiscal Year 2025On February 3, 2025, the Company completed the acquisition of Pharmaceutics International, Inc. (“Pii”) for cash consideration transferred of $309 million. The final purchase price is subject to adjustment based on certain customary conditions as outlined in the purchase agreement. Pii is a contract development and manufacturing organization specializing in early stage, clinical, and commercial volume aseptic filling, lyophilization, and oral solid dose manufacturing. The acquisition is expected to enhance the Company’s existing Regulated Industries service offerings, which includes the development and commercial production of auto-injectors, pen injectors, inhalers, and on-body pumps. The acquisition of Pii was accounted for as a business combination using the acquisition method of accounting. Assets acquired of $357 million, including $149 million in intangible assets and $142 million in goodwill, and liabilities assumed of $48 million were recorded at their estimated fair values as of the acquisition date. The preliminary estimates and measurements are subject to change during the measurement period for assets acquired, liabilities assumed, and tax adjustments. The excess of the purchase price over the fair value of the acquired assets and assumed liabilities was recorded to goodwill and was fully allocated to the Regulated Industries segment. Goodwill is primarily attributable to expected synergies enabling comprehensive support for customers in drug development, clinical trials, and product commercialization at scale. The majority of the goodwill is currently not expected to be deductible for income tax purposes. The results of operations were included in the Company’s consolidated financial results beginning on February 3, 2025. Pro forma information has not been provided as the acquisition of Pii is not deemed to be significant.

We are committed to reducing the risk of cybersecurity compromise, either intentional or unintentional, to our customers, employees, and company proprietary information resources. Our cybersecurity risk management program is integrated into our global enterprise risk management framework, which is designed to help identify, monitor, and mitigate key strategic risks. Our enterprise risk assessment, which includes data protection and cybersecurity, is developed annually to provide insight into the risks with the greatest potential to impact Jabil’s strategy and our financial goals. Key components of our cybersecurity risk management program include the following:•Cybersecurity policies. We leverage cybersecurity industry-standard frameworks and insights from internal assessments to develop policies to guide the use of our information assets (for example, business information and information resources such as mobile phones, computers, and workstations), access to specific intellectual property or technologies, deployment of AI within the Company, and protection of personal information. The Company has also established written policies and procedures to help ensure that cybersecurity incidents are quickly assessed and addressed. •Risk assessment. The Company uses risk assessment processes to identify and prioritize cybersecurity risks, employ operational controls to mitigate risks, report incidents, and analyze trends, and employ a corrective action process to address nonconformities. Key risk indicators are used across all business functions to monitor and measure our cybersecurity risk exposure. Through this cross-functional approach, management identifies potential operational and strategic risks which could impact our strategy and financial goals. •System safeguards. We implement industry-standard technical safeguards that are designed to protect our information systems, operations, and sensitive information from cybersecurity threats. By collaborating with internal stakeholders across the company, we integrate foundational cybersecurity principles throughout our organization, including multiple layers of cybersecurity defenses and restricted access based on business need. We frequently conduct vulnerability assessments to identify new risks and periodically test the efficacy of our safeguards through both internal and external penetration tests.•Security Awareness and Training.

Accrued ExpensesAccrued expenses consist of the following (in millions):August 31, 2025August 31, 2024Inventory deposits$1,205 $1,582 Contract liabilities(1)1,016 1,017 Accrued compensation and employee benefits756 699 Other accrued expenses2,208 2,201 Accrued expenses$5,185 $5,499 (1)Revenue recognized during the fiscal years ended August 31, 2025 and 2024 that was included in the contract liability balance as of August 31, 2024, and 2023 was $592 million and $507 million, respectively.

Stockholders’ EquityThe Company recognized stock-based compensation expense within selling, general and administrative expense as follows (in millions): Fiscal Year Ended August 31, 202520242023Restricted stock units$89 $70 $81 Employee stock purchase plan18 19 14 Total$107 $89 $95 Equity Compensation PlanThe 2021 Equity Incentive Plan (the “2021 EIP”) provides for the grant of restricted stock awards, restricted stock unit awards and other stock-based awards. The maximum aggregate number of shares that are available for issuance under the 2021 EIP is 11,000,000.Following is a reconciliation of the shares available to be issued under the 2021 EIP as of August 31, 2025: Shares Available for GrantBalance as of August 31, 20248,038,332 Restricted stock units granted, net of forfeitures(1)(903,162)Balance as of August 31, 20257,135,170 (1)Represents the maximum number of shares that can be issued based on the achievement of certain performance criteria.Restricted Stock UnitsCertain key employees have been granted time-based, performance-based and market-based restricted stock units. The time-based restricted stock units granted generally vest on a graded vesting schedule over three years. The performance-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The performance-based restricted stock units have a vesting condition that is based upon the Company’s cumulative adjusted core earnings per share during the performance period. The market-based restricted stock units generally vest on a cliff vesting schedule over three years and up to a maximum of 200%, depending on the specified performance condition and the level of achievement obtained. The market-based restricted stock units have a vesting condition that is tied to the Company’s total shareholder return based on the Company’s stock performance in relation to the companies in the Standard and Poor’s (S&P) Super Composite Technology Hardware and Equipment Index excluding the Company.The following table summarizes restricted stock units activity from August 31, 2024 through August 31, 2025:SharesWeighted-AverageGrant-DateFair ValueOutstanding as of August 31, 20242,531,774 $91.51 Changes during the periodShares granted(1)1,020,580 $135.21 Shares vested(1,117,182)$81.03 Shares forfeited(117,418)$106.13 Outstanding as of August 31, 20252,317,754 $115.

Fair Value MeasurementsFair Value Measurements on a Recurring BasisThe following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated (in millions):Fair Value HierarchyAugust 31, 2025August 31, 2024Assets:Cash and cash equivalents:Cash equivalentsLevel 1(1)$392 $303 Prepaid expenses and other current assets:Short-term investmentsLevel 127 27 Forward foreign exchange contracts:Derivatives designated as hedging instruments (Note 11)Level 2(2)19 11 Derivatives not designated as hedging instruments (Note 11)Level 2(2)26 25 Net investment hedges:Derivatives designated as hedging instruments (Note 11)Level 2(2)1 — Liabilities:Accrued expenses:Forward foreign exchange contracts:Derivatives designated as hedging instruments (Note 11)Level 2(2)$— $28 Derivatives not designated as hedging instruments (Note 11)Level 2(2)9 22 Net investment hedges:Derivatives designated as hedging instruments (Note 11)Level 2(2)13 6 Forward interest rate swaps:Derivatives designated as hedging instruments (Note 11)Level 2(3)1 — Other liabilities:Net investment hedges:Derivatives designated as hedging instruments (Note 11)Level 2(2)— 5 (1)Consist of investments that are readily convertible to cash with original maturities of 90 days or less.(2)The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers.(3)Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads. Fair Value of Financial InstrumentsThe carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. The carrying amounts of borrowings under credit facilities and under loans approximates fair value as interest rates on these instruments approximates current market rates.