Jabil Inc. (NYSE:JBL) delivered third-quarter fiscal 2026 results ahead of Wall Street expectations, driven by continued strength in artificial intelligence infrastructure and improving performance across several end markets. Despite the earnings beat, shares fell 2.5% following the announcement.
The electronics manufacturing services company reported adjusted earnings of $3.16 per share, exceeding analyst forecasts of $3.08. Revenue rose 12% year over year to $8.8 billion, topping consensus estimates of $8.55 billion and increasing from $7.83 billion in the corresponding period last year.
AI Infrastructure Continues to Fuel Growth
Management credited the quarter’s performance to sustained demand linked to AI infrastructure projects, alongside stronger-than-anticipated results from business segments that had previously faced challenges.
Automotive and Connected Living operations both contributed positively during the period, helping offset broader industry headwinds.
“Jabil delivered a very strong third quarter, with results ahead of our expectations across revenue, core operating margin, core EPS, and free cash flow,” said CEO Mike Dastoor. “AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher.”
Fourth-Quarter Outlook Remains Strong
Looking ahead, Jabil forecast adjusted earnings per share of between $3.80 and $4.20 for the fourth quarter of fiscal 2026.
The midpoint of $4.00 compares favorably with the prior quarter’s result and reflects management’s confidence in continued business momentum.
Revenue for the fourth quarter is expected to range between $9.2 billion and $10.0 billion.
Full-Year Guidance Raised Above Consensus
The company also issued an upbeat outlook for the full fiscal year.
Jabil now expects adjusted earnings per share of $12.70 for fiscal 2026, above the analyst consensus estimate of $12.38.
Revenue is projected to reach $35 billion, exceeding market expectations of $34.24 billion. Management also forecast a core operating margin of 5.8% and adjusted free cash flow of more than $1.4 billion.
“Our diversified model continues to work, allowing us to support strong growth while also driving higher margins and strong free cash flow,” Dastoor added.
Profitability Improves on a GAAP Basis
On a GAAP basis, net income for the third quarter increased to $275 million, or $2.59 per diluted share.
That compares with net income of $222 million, or $2.03 per diluted share, reported during the same period a year earlier.
The improvement reflects stronger operational performance as well as continued demand across several of the company’s key growth markets.
Market Focus Turns to Execution
Although the quarterly results and forward guidance exceeded expectations, investors appeared to take profits following the stock’s recent performance, sending shares lower after the release.
Nevertheless, the latest results reinforce Jabil’s position as a major beneficiary of ongoing investment in AI infrastructure while highlighting the resilience of its diversified manufacturing and technology services platform.