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Jabil Raises Full-Year Forecast Amid Robust AI Demand

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Jabil Raises Full-Year Forecast Amid Robust AI Demand

Jabil (JBL) raised its full-year outlook on Wednesday as the manufacturing solutions provider logged stronger-than-expected fiscal third-quarter results amid robust demand for artificial intelligence infrastructure.

For fiscal 2026, the company now anticipates core earnings of $12.70 per share and revenue of $35 billion, up from its prior guidance that called for $12.25 and $34 billion, respectively. Analysts in a FactSet poll project non-GAAP EPS of $12.35 and sales of $34.17 billion.

For the quarter ended May 31, Jabil's core EPS rose to $3.16 from $2.55 a year earlier, surpassing the consensus estimate of $3.10. Revenue grew 12% to $8.75 billion, while analysts expected $8.61 billion.

Shares of Jabil rose 4.1% in Wednesday trade.

"AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher," Chief Executive Mike Dastoor said in a statement on Wednesday.

Jabil raised its full-year AI revenue outlook to $13.6 billion from $13.1 billion, Dastoor said on a conference call, according to a FactSet transcript. The company recorded $9 billion in AI revenue in fiscal 2025.

Dastoor expects Jabil's fiscal 2027 AI revenue to grow at an annual pace similar to 2026.

Third-quarter revenue in the regulated industries segment increased 4% year on year, while intelligent infrastructure sales jumped 21%, the company said in an earnings presentation. Connected living and digital commerce grew 5%.

"We continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in automotive and connected living," Dastoor said in the statement.

For the ongoing quarter, Jabil expects core EPS of $3.80 to $4.20 on revenue of $9.2 billion to $10 billion. Analysts are looking for non-GAAP EPS of $3.72 and $8.97 billion, respectively.

Price: $389.71, Change: $+14.20, Percent Change: +3.78%

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