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Jabil Raises 2026 Guidance as AI Orders Drive Capacity Buildout

Management says faster hyperscaler AI demand underpins higher targets and gives the company room to invest or cut leverage.

Overview

  • Jabil reported fiscal third-quarter results on Wednesday with adjusted EPS of $3.16 and revenue near $8.75 billion that beat analyst estimates.
  • The company raised full-year guidance to $35.0 billion in revenue and $12.70 in adjusted EPS and increased its AI-related revenue forecast to about $13.6 billion.
  • Jabil said it recently won a third hyperscale customer that it expects to deliver a few hundred million in revenue in fiscal 2027 and grow to roughly $1 billion or more in fiscal 2028.
  • To meet orders the company is adding roughly 10% more manufacturing capacity with new or expanded sites in North Carolina, Memphis, India, Mexico and other locations while keeping capital spending near its long-term 1.5%–2% of revenue target.
  • Market reaction was mixed as shares swung from a large intraday jump to profit-taking, with investors weighing the upgraded outlook against the stock's prior gains, Jabil's leverage and relatively thin margins and several analysts raising price targets.