Blab AI
Jabil Raises 2026 Outlook After Q3 Earnings Beat Estimates, Driven by AI Infrastructure Demand
Jabil Inc. (NYSE: JBL) reported fiscal third‑quarter 2026 results on Wednesday that surpassed analyst expectations and prompted the company to lift its full‑year guidance. Adjusted earnings per share rose to $3.16, above the consensus estimate of $3.10, while revenue increased 12% year‑over‑year to $8.75 billion, exceeding the $8.61 billion forecast.
The company’s performance was largely supported by growth in its Intelligent Infrastructure segment, which recorded a 21% revenue increase to $3.0 billion. Revenue from the Regulated Industries segment grew 4% and Connected Living & Digital Commerce revenue rose 5%. Core EBITDA for the quarter reached $654 million, up from $571 million in the same period a year earlier.
Chief Executive Officer Mike Dastoor said that demand for AI infrastructure remains “extremely strong,” a factor that led Jabil to raise its fiscal 2026 outlook. The company now expects AI‑related revenue of about $13.6 billion for the year, an increase of $500 million from the March forecast and higher than the $9 billion reported in fiscal 2025.
Dastoor highlighted Jabil’s end‑to‑end manufacturing capabilities, which allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly. He also noted that Jabil has secured its third hyperscale customer, an engagement that is projected to generate a few hundred million dollars in revenue during fiscal 2027 and could grow into a billion‑dollar opportunity or more in fiscal 2028.
Chief Financial Officer Greg Hebard said the company is expanding its global manufacturing footprint by about 10% through new facilities and site expansions. He added that Jabil 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.
The company’s new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. Hebard noted that the North Carolina facility remains on schedule, with one customer already committed and additional customer discussions underway. The site is expected to begin ramping production by January.
Jabil’s earnings presentation and earnings call transcript confirm that the company’s financial results were driven by robust demand for AI data‑center hardware and related services. The company’s CFO emphasized that cash and cash equivalents totaled $1.36 billion as of May 31, providing a solid liquidity position.
The company’s guidance reflects a broader trend in the electronics manufacturing services industry, where AI‑related hardware and infrastructure demand has accelerated in 2026. Analysts have noted that Jabil’s Intelligent Infrastructure segment now accounts for a significant share of its revenue and margin growth.
In the context of the global AI boom, Jabil’s focus on end‑to‑end manufacturing for AI infrastructure positions it to benefit from the projected spending of $650 billion on AI data centers in 2026. The company’s recent hyperscale win and planned capacity expansions are intended to capture a portion of that market.
Jabil’s updated fiscal 2026 outlook now projects total revenue of $35 billion and adjusted earnings per share of $12.70, both above consensus estimates. The company’s share price rose more than 10% in morning trading following the announcement.
At present, Jabil is preparing to scale its manufacturing capabilities to meet the growing demand for AI infrastructure. The company’s next steps include ramping new facilities, securing additional hyperscale customers, and maintaining capital expenditures within its target range. Investors and analysts will watch how the company’s AI‑related revenue performs in the upcoming quarters and whether the projected growth in fiscal 2027 materializes.
In summary, Jabil’s Q3 2026 results demonstrate strong performance driven by AI infrastructure demand, leading the company to raise its full‑year guidance. The company’s strategic focus on hyperscale customers and global capacity expansion positions it to capture a growing share of the AI data‑center market, while maintaining disciplined capital spending.
The company’s performance was largely supported by growth in its Intelligent Infrastructure segment, which recorded a 21% revenue increase to $3.0 billion. Revenue from the Regulated Industries segment grew 4% and Connected Living & Digital Commerce revenue rose 5%. Core EBITDA for the quarter reached $654 million, up from $571 million in the same period a year earlier.
Chief Executive Officer Mike Dastoor said that demand for AI infrastructure remains “extremely strong,” a factor that led Jabil to raise its fiscal 2026 outlook. The company now expects AI‑related revenue of about $13.6 billion for the year, an increase of $500 million from the March forecast and higher than the $9 billion reported in fiscal 2025.
Dastoor highlighted Jabil’s end‑to‑end manufacturing capabilities, which allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly. He also noted that Jabil has secured its third hyperscale customer, an engagement that is projected to generate a few hundred million dollars in revenue during fiscal 2027 and could grow into a billion‑dollar opportunity or more in fiscal 2028.
Chief Financial Officer Greg Hebard said the company is expanding its global manufacturing footprint by about 10% through new facilities and site expansions. He added that Jabil 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.
The company’s new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. Hebard noted that the North Carolina facility remains on schedule, with one customer already committed and additional customer discussions underway. The site is expected to begin ramping production by January.
Jabil’s earnings presentation and earnings call transcript confirm that the company’s financial results were driven by robust demand for AI data‑center hardware and related services. The company’s CFO emphasized that cash and cash equivalents totaled $1.36 billion as of May 31, providing a solid liquidity position.
The company’s guidance reflects a broader trend in the electronics manufacturing services industry, where AI‑related hardware and infrastructure demand has accelerated in 2026. Analysts have noted that Jabil’s Intelligent Infrastructure segment now accounts for a significant share of its revenue and margin growth.
In the context of the global AI boom, Jabil’s focus on end‑to‑end manufacturing for AI infrastructure positions it to benefit from the projected spending of $650 billion on AI data centers in 2026. The company’s recent hyperscale win and planned capacity expansions are intended to capture a portion of that market.
Jabil’s updated fiscal 2026 outlook now projects total revenue of $35 billion and adjusted earnings per share of $12.70, both above consensus estimates. The company’s share price rose more than 10% in morning trading following the announcement.
At present, Jabil is preparing to scale its manufacturing capabilities to meet the growing demand for AI infrastructure. The company’s next steps include ramping new facilities, securing additional hyperscale customers, and maintaining capital expenditures within its target range. Investors and analysts will watch how the company’s AI‑related revenue performs in the upcoming quarters and whether the projected growth in fiscal 2027 materializes.
In summary, Jabil’s Q3 2026 results demonstrate strong performance driven by AI infrastructure demand, leading the company to raise its full‑year guidance. The company’s strategic focus on hyperscale customers and global capacity expansion positions it to capture a growing share of the AI data‑center market, while maintaining disciplined capital spending.
