Jabil raises revenue forecast to $35 billion as AI infrastructure demand surges

Jabil Lifts Revenue Forecast Amid Surging AI Infrastructure Demand

Jabil has raised its fiscal 2026 revenue forecast to $35 billion from a previous projection of $34 billion, driven by what CEO Mike Dastoor describes as "extremely strong" AI infrastructure demand1

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. The St. Petersburg, Florida-based electronics component maker reported third-quarter adjusted earnings of $3.16 per share, exceeding the analyst consensus estimate of $3.10, while revenue increased 12% year over year to $8.75 billion, topping expectations of $8.61 billion1

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. The upbeat forecast sent Jabil stock soaring more than 10% in morning trading2

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AI-Related Revenue Climbs as Data Center Spending Accelerates

The company now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, representing a $500 million increase from its March forecast of $13.1 billion and a substantial jump from the $9 billion reported in fiscal 20251

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. A surge in data-center infrastructure spending, fueled by strong data center demand for AI computing power, has positioned Jabil to capitalize on this trend2

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. Mike Dastoor emphasized that the company's end-to-end manufacturing capabilities enable customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling, and full system assembly1

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Third Hyperscale Customer Secured With Billion-Dollar Potential

Jabil recently secured its third hyperscale customer, an engagement expected to generate a few hundred million dollars in revenue during fiscal 2027 before expanding into a billion-dollar opportunity or more in fiscal 20281

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. The company's Intelligent Infrastructure segment demonstrated robust performance with revenue climbing 21% year over year, while its Regulated Industries segment increased 4% and Connected Living & Digital Commerce rose 5%1

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. Core EBITDA increased to $654 million from $571 million in the prior-year quarter1

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Expanding Global Manufacturing Footprint to Meet AI Demand

Chief Financial Officer Greg Hebard revealed that Jabil is expanding its global manufacturing footprint by approximately 10% through new facilities and site expansions1

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. New capacity is coming online in North Carolina, Memphis, India, Mexico, and other locations, with the North Carolina facility expected to begin ramping production by January1

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. The company expects to support similar AI revenue growth in fiscal 2027 while maintaining capital expenditures within its long-term target range of 1.5% to 2% of revenue1

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Strategic Partnership With Adani Enterprises Eyes India Market

Jabil announced a partnership with Adani Enterprises this week to manufacture next-generation liquid-cooled AI racks along with servers and storage systems for hyperscalers and enterprise data center customers2

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. Dastoor said the proposed alliance could establish a significant AI infrastructure manufacturing platform in India, a market the company believes will become increasingly important for both domestic and global AI infrastructure demand, though meaningful contributions are more likely to begin in fiscal 20281

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Raised Outlook Signals Continued Momentum

For fiscal 2026, Jabil increased its adjusted earnings outlook to $12.70 per share from $12.25, surpassing the consensus estimate of $12.381

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. For the fiscal fourth quarter, the company expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion, with adjusted earnings forecast at $3.80 to $4.20 per share compared to expectations of $3.721

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. The manufacturer, which makes components for Apple and provides design, production, and management solutions across technology, automotive, healthcare, and storage markets, continues to see better-than-expected performance particularly in its automotive and connected living segments that had earlier been under pressure2

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. Shares traded on NYSE:JBL were up 4.27% at $391.55 at the time of publication1

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