Jabil raised its fiscal 2026 revenue and earnings outlook after stronger-than-expected third-quarter results, with continued demand for artificial intelligence infrastructure and improving performance in its automotive and connected living businesses lifting revenue and profit.
The St. Petersburg-based manufacturer reported third-quarter revenue of $8.8 billion, up from $7.8 billion a year earlier, while net income increased to $275 million from $222 million and diluted earnings per share rose to $2.59 from $2.03.
“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” CEO Mike Dastoor said in a news release. He said the company also saw better-than-expected performance in its automotive and connected living businesses, two segments that had previously faced weaker demand.
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Jabil now expects about $35 billion in fiscal 2026 revenue, a 5.8% core operating margin, core diluted earnings of $12.70 per share and more than $1.4 billion in adjusted free cash flow, while raising its fourth-quarter revenue forecast to between $9.2 billion and $10 billion.
Cloud and data center infrastructure continues to drive much of that growth. Revenue in Jabil’s Intelligent Infrastructure segment increased 21% from a year earlier, and the company expects its cloud and data center infrastructure business to generate $10.9 billion in revenue this fiscal year, up 47% from fiscal 2025.
As demand has increased, Jabil has expanded manufacturing capacity by opening a factory in Pune, India, increasing its manufacturing footprint there from 500,000 square feet to 1.2 million square feet over the past year.
The expansion nearly doubled Jabil’s workforce in India to almost 11,000 employees and will enable the manufacture of products for customers in AI cloud data centers, telecommunications, automotive and digital commerce.
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