Jabil Inc. (JBL) shares climbed sharply in early trading Wednesday after the electronics manufacturing services provider raised its full-year revenue and profit forecasts for fiscal 2026, driven by sustained strong demand from artificial intelligence data centers. The stock was recently up 9.8% at $412.29, after touching an intraday high of $427.
The company now expects revenue for fiscal 2026 to reach $35 billion, up from its prior outlook of $34 billion. Adjusted earnings per share are forecast at $12.70, compared with the previous guidance of $12.25. Both figures surpassed Wall Street expectations, which had called for revenue of $34.2 billion and adjusted profit of around $12.40 per share, according to LSEG data reported by Reuters.
Strong Q3 Results Fuel Optimism
Jabil reported adjusted earnings of $3.16 per share for its fiscal third quarter, beating the average analyst estimate of $3.10. Revenue increased 11.8% year-over-year to $8.75 billion, also exceeding consensus targets. The adjusted earnings exclude items the company considers outside its core operations.
CEO Mike Dastoor attributed the strong performance to robust AI infrastructure demand, noting that the company's diversified business model continues to deliver. “AI infrastructure demand remains extremely strong,” Dastoor said in the company’s release. He also highlighted that automotive and connected living segments performed better than anticipated, after both areas had faced headwinds.
Market Context and Analyst Views
While AI infrastructure remains the primary growth driver, some analysts caution that high expectations could pose risks. Stifel’s Ruben Roy raised his price target on Jabil to $430, but remarked that “the risk lies in expectations, not execution.” Raymond James analyst Melissa Fairbanks flagged supply constraints as a key watch item for fiscal 2027, noting that any shortages in components or capacity could make it challenging to achieve the revised targets.
Peer stocks showed mixed reactions. Flex Ltd. (FLEX) fell 1.2%, while Sanmina Corporation (SANM) edged up 0.2% and Benchmark Electronics (BHE) added 0.4%. The move in Jabil appeared driven by its own guidance rather than broader sector trends.
New Partnership in India
This week, Jabil announced a collaboration with Adani Enterprises to establish an AI and data center infrastructure manufacturing platform in India. The joint venture will target hyperscalers, co-location operators, and enterprise data centers. Financial terms of the deal were not disclosed.
For the fiscal fourth quarter, Jabil guided revenue in the range of $9.2 billion to $10.0 billion, with core diluted earnings per share between $3.80 and $4.20. The company’s core EPS metric excludes amortization, stock-based compensation, and restructuring charges.
Overall, Jabil’s updated outlook underscores the ongoing strength of AI-related spending, though investors remain watchful of valuation levels and supply chain dynamics. The broader market showed little movement, with the SPDR S&P 500 ETF (SPY) up just 0.1%.
