Jabil Third-Quarter Earnings Rise on AI Data-Center Demand
Jabil third-quarter earnings lifted full-year outlook on strong AI infrastructure demand, boosting margins and free cash flow and spurring trader interest.
KEY TAKEAWAYS
- Reported Q3 net revenue $8.8B and core diluted EPS $3.16, ahead of internal expectations.
- Raised fiscal 2026 targets to about $35.0B revenue, 5.8% core margin, $12.70 core EPS, >$1.4B FCF.
- Management tied the upgrade to extremely strong AI infrastructure demand and recovering Automotive and Connected Living.
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Jabil Inc. (NYSE: JBL) reported preliminary fiscal third-quarter 2026 results on June 17, 2026, that exceeded internal expectations. The company raised its full-year outlook, citing extremely strong AI data-center demand and improving trends in Automotive and Connected Living segments, which support higher margin and free-cash-flow targets.
Third-Quarter Results and Fiscal 2026 Outlook
Jabil filed a Form 8-K and issued a press release titled “Jabil Posts Third Quarter Results,” disclosing preliminary, unaudited results for the quarter ended May 31, 2026. The company reported net revenue of $8.8 billion and core (non-GAAP) diluted earnings per share of $3.16. Management said the results surpassed internal forecasts across revenue, core operating margin, core EPS, and free cash flow.
The company raised its fiscal 2026 targets to about $35 billion in net revenue, a core operating margin of 5.8%, core diluted EPS of $12.70, and adjusted free cash flow above $1.4 billion. This revision reflects stronger-than-expected program ramps. For the fourth quarter, Jabil guided net revenue between $9.2 billion and $10.0 billion and core diluted EPS of $3.80 to $4.20, incorporating ongoing strength in Intelligent Infrastructure programs and recovering Automotive and Connected Living segments.
CEO Mike Dastoor said, "AI infrastructure demand remains extremely strong." Management raised its AI-related revenue forecast to about $13.6 billion for fiscal 2026, roughly a 50.0% increase from fiscal 2025’s approximately $9.0 billion. Most of this growth is concentrated in Intelligent Infrastructure, including data-center and networking programs. At this scale, AI-related revenue would represent nearly 39.0% of the company’s fiscal 2026 revenue target, highlighting the significant role of data-center programs in Jabil’s growth.
Management also noted better-than-expected performance in Automotive and Connected Living, which contributed materially to the stronger full-year outlook. Executives emphasized Jabil’s diversified, capital-efficient model as the foundation for margin expansion and improved cash conversion. They said the combination of AI momentum and portfolio recovery positions the company well for fiscal 2027, with continued focus on profitable growth and capital efficiency.
