Jabil Inc. (NYSE:JBL) stock rose on Wednesday after the manufacturing services provider reported better-than-expected fiscal third-quarter 2026 results and raised its full-year guidance, supported by 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 increased 12% year over year to $8.75 billion, exceeding analysts’ expectations of $8.61 billion. Cash and cash equivalents totaled $1.36 billion as of May 31.
Segment Performance
Revenue from the Regulated Industries segment increased 4% from a year earlier, while Intelligent Infrastructure revenue climbed 21%. Connected Living & Digital Commerce revenue rose 5%.
Core EBITDA increased to $654 million from $571 million in the prior-year quarter.
AI Demand Fuels Growth
Chief Executive Officer Mike Dastoor said demand for AI infrastructure remains “extremely strong,” prompting the company to raise its fiscal 2026 outlook.
Jabil now expects AI-related revenue of about $13.6 billion in fiscal 2026, up $500 million from its March forecast and higher than the $9 billion reported in fiscal 2025.
Dastoor said the company’s end-to-end manufacturing capabilities allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly.
He added that Jabil recently secured its third hyperscale customer. The 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
Chief Financial Officer Greg Hebard said Jabil is expanding its global manufacturing footprint by about 10% through new facilities and site expansions.
He said 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 said new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. He added 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.
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, although the companies have not finalized an agreement. He said meaningful contributions are more likely to begin in fiscal 2028.
He also said the Hanley acquisition is performing better than expected and strengthening Jabil’s capabilities in power equipment, energy systems and services. In addition, 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 analyst 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 on Wednesday, according to Benzinga Pro data.
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