Particle.news
Download on the App Store

Jabil Raises 2026 Forecast After Strong AI-Driven Quarter

Rising AI and hyperscaler orders are driving higher revenue targets with a planned capacity expansion of about 10%.

Overview

  • Jabil, which reported results on Wednesday, beat fiscal third-quarter estimates with adjusted EPS of $3.16 and revenue around $8.75–8.8 billion.
  • The company raised full-year fiscal 2026 guidance to $35 billion in revenue and $12.70 in adjusted EPS, citing sustained demand for AI infrastructure.
  • Jabil boosted its AI-related revenue outlook to roughly $13.6 billion and said it has landed a third hyperscale customer that should scale from a few hundred million in fiscal 2027 to over $1 billion in fiscal 2028.
  • Management plans to grow manufacturing capacity by about 10% with new or expanded sites in North Carolina, Memphis, India and Mexico while keeping capital spending inside its 1.5–2% of revenue target.
  • Shares showed sharp intraday gains then a pullback as investors weighed whether the upside was already priced in, and several analysts raised price targets while noting debt levels and thin margins as risks despite strong free cash flow.