June 17, 2026

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Jabil Inc. (NYSE: JBL) reported fiscal third-quarter 2026 results above expectations, supported by strong AI infrastructure demand, higher margins, stronger free cash flow, and an increased full-year outlook.
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Jabil is a global manufacturing solutions company that provides design, supply chain, engineering, electronics manufacturing, and production services across cloud, data center, healthcare, automotive, industrial, consumer, and connected device markets.
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The company reported core EPS of $3.16, above estimates of $3.12, representing a 1.3% earnings surprise. Revenue came in at $8.75 billion, above estimates of $8.53 billion, with revenue growth of 11.8%.

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Results Showed Broad-Based Strength

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Jabil reported third-quarter revenue of about $8.8 billion, up 12% year-over-year and ahead of management’s expectations.
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Core operating income was $504 million, with core operating margin of 5.8%. GAAP diluted EPS was $2.59, while core diluted EPS increased 24% to $3.16.
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Intelligent Infrastructure was the main growth driver. Segment revenue rose 21% to $4.2 billion, supported by AI-related programs, cloud and data center infrastructure, capital equipment, and networking demand. Networking and communications revenue grew more than 50%, helped by a strong ramp in India.
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Regulated Industries revenue increased 4% to $3.2 billion, driven by stronger-than-expected automotive and transportation demand. Connected Living and Digital Commerce revenue rose 5% to $1.4 billion, helped by better consumer demand than management had assumed.

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Cash Flow, Buybacks, and AI Outlook

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Jabil generated $535 million in operating cash flow and $359 million in adjusted free cash flow during the quarter.
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The company ended the quarter with $1.4 billion in cash and a debt-to-core EBITDA ratio of 1.3x. Jabil also repurchased about $291 million of stock during the quarter and expects to complete its $1 billion share repurchase authorization in the fourth quarter.
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Management raised its fiscal 2026 outlook. Jabil now expects revenue of about $35 billion, core operating margin of about 5.8%, core EPS of about $12.70, and adjusted free cash flow of more than $1.4 billion.
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The company also expects AI-related revenue of about $13.6 billion in fiscal 2026, up from $9.0 billion in fiscal 2025. Management said AI-related revenue growth in fiscal 2027 could be similar in percentage terms to fiscal 2026, even off a much larger base.
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Jabil also highlighted new capacity coming online in North Carolina, Memphis, India, and other locations. The company won a third hyperscale customer and is exploring a potential AI infrastructure manufacturing alliance with Adani Enterprises in India, though management said meaningful contribution from that opportunity would likely begin in fiscal 2028.

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The Bigger Picture

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Jabil’s quarter showed how AI infrastructure demand is reshaping the company’s growth profile.
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The company beat revenue and earnings expectations, raised full-year guidance, improved free cash flow, and pointed to continued AI-related momentum. The key question is whether Jabil can sustain rapid AI infrastructure growth while managing capacity ramps, supply chain constraints, and margin expansion.
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