Jabil Inc. (Jabil (JBL)) shares rose Wednesday after the manufacturing services provider delivered better-than-expected fiscal third-quarter results and lifted its full-year guidance, powered by what its CEO called "extremely strong" demand for artificial intelligence infrastructure.
The company reported adjusted earnings of $3.16 per share, topping the analyst consensus estimate of $3.10. Revenue climbed 12% year over year to $8.75 billion, exceeding expectations of $8.61 billion. Cash and equivalents stood at $1.36 billion as of May 31.
Segment Performance
Revenue from the Regulated Industries segment rose 4% from a year earlier, while Intelligent Infrastructure revenue jumped 21%. Connected Living & Digital Commerce revenue increased 5%. Core EBITDA grew to $654 million from $571 million in the prior-year quarter.
AI Demand Fuels Growth
CEO Mike Dastoor said the AI boom is far from cooling off. "Demand for AI infrastructure remains extremely strong," he said, and that strength is why Jabil raised its fiscal 2026 outlook. The company now expects AI-related revenue of about $13.6 billion for the full year, up $500 million from its March forecast and well above the $9 billion it reported in fiscal 2025.
Dastoor highlighted Jabil's end-to-end manufacturing capabilities as a key advantage, allowing customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling, and full system assembly. He also revealed that Jabil recently landed its third hyperscale customer. That engagement is expected to generate a few hundred million dollars in revenue during fiscal 2027 before growing into a billion-dollar opportunity or more in fiscal 2028.
Capacity Expansion Continues
CFO Greg Hebard said Jabil is expanding its global manufacturing footprint by about 10% through new facilities and site expansions. The company expects to support similar AI revenue growth in fiscal 2027 while keeping capital expenditures within its long-term target range of 1.5% to 2% of revenue.
Dastoor added that new capacity is coming online in North Carolina, Memphis, India, Mexico, and other locations. The North Carolina facility remains on schedule, with one customer already committed and additional discussions underway. The site is expected to begin ramping production by January.
India Partnership and Storage Demand Offer Upside
Dastoor said Jabil's proposed alliance with Adani Enterprises could establish a significant AI infrastructure manufacturing platform in India, though the companies have not finalized an agreement. Meaningful contributions are more likely to begin in fiscal 2028.
He also noted that the Hanley acquisition is performing better than expected, strengthening Jabil's capabilities in power equipment, energy systems, and services. Meanwhile, storage demand tied to the company's second hyperscale customer continues to accelerate.
Outlook
For the fiscal fourth quarter, Jabil expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion. The company forecasts adjusted earnings of $3.80 to $4.20 per share, compared with analysts' expectations of $3.72.
For fiscal 2026, Jabil raised its revenue outlook to $35.00 billion from its previous forecast of $34.00 billion, ahead of the consensus estimate of $34.24 billion. The company also increased its adjusted earnings outlook to $12.70 per share from $12.25, topping the consensus estimate of $12.38.
JBL Price Action: Jabil shares were up 4.27% at $391.55 at the time of publication Wednesday, according to market data.
