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

Why Is Jabil Stock Soaring Wednesday? - Jabil (NYSE:JBL)

Jabil CEO Says AI Infrastructure Demand Remains 'Extremely Strong' The company reported adjusted earnings of $3.16 per share, topping the analyst consensus estimate of $3.10. Revenue increased 12% year over year to $8.75 billion, exceeding analysts' expectations of $8.61 billion. Cash and cash equivalents totaled $1.36 billion as of May 31. Segment Performance Revenue from the Regulated Industries segment increased 4% from a year earlier, while Intelligent Infrastructure revenue climbed 21%. Connected Living & Digital Commerce revenue rose 5%. Core EBITDA increased to $654 million from $571 million in the prior-year quarter. AI Demand Fuels Growth Chief Executive Officer Mike Dastoor said demand for AI infrastructure remains "extremely strong," prompting the company to raise its fiscal 2026 outlook. Jabil now expects AI-related revenue of about $13.6 billion in fiscal 2026, up $500 million from its March forecast and higher than the $9 billion reported in fiscal 2025. Dastoor said the company's end-to-end manufacturing capabilities allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly. He added that Jabil recently secured its third hyperscale customer. The engagement is expected to generate a few hundred million dollars in revenue during fiscal 2027 before growing into a billion-dollar opportunity or more in fiscal 2028. Capacity Expansion Continues Chief Financial Officer Greg Hebard said Jabil is expanding its global manufacturing footprint by about 10% through new facilities and site expansions. He said the company expects to support similar AI revenue growth in fiscal 2027 while keeping capital expenditures within its long-term target range of 1.5% to 2% of revenue. Dastoor said new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. He added that the North Carolina facility remains on schedule, with one customer already committed and additional customer discussions underway. The site is expected to begin ramping production by January. India Partnership And Storage Demand Offer Upside Dastoor said Jabil's proposed alliance with Adani Enterprises could establish a significant AI infrastructure manufacturing platform in India, although the companies have not finalized an agreement. He said meaningful contributions are more likely to begin in fiscal 2028. He also said the Hanley acquisition is performing better than expected and strengthening Jabil's capabilities in power equipment, energy systems and services. In addition, storage demand tied to the company's second hyperscale customer continues to accelerate. Outlook For the fiscal fourth quarter, Jabil expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion. The company forecasts adjusted earnings of $3.80 to $4.20 per share, compared with analysts' expectations of $3.72. For fiscal 2026, Jabil raised its revenue outlook to $35.00 billion from its previous forecast of $34.00 billion, ahead of the analyst consensus estimate of $34.24 billion. The company also increased its adjusted earnings outlook to $12.70 per share from $12.25, topping the consensus estimate of $12.38. JBL Price Action: Jabil shares were up 4.27% at $391.55 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Electronics firm Jabil raises annual profit forecast on strong data center demand

June 17 (Reuters) - Jabil raised its 2026 profit forecast on Wednesday, as the electronic-component maker looks to capitalize on AI-led demand for data centers, sending its shares up by more than 10% in morning trading. A surge in data-center infrastructure spending, driven by strong demand for AI computing power, has benefited companies such as Jabil. "AI infrastructure demand remains extremely strong," said CEO Mike Dastoor, adding the company continued to see better-than-expected performance particularly in its automotive and connected living segment that had earlier been under pressure. It expects AI-related revenue to be about $13.6 billion in 2026, $500 million higher than its March forecast of $13.1 billion, Dastoor said on a post-earnings call. He said Jabil's alliance with Adani Enterprises represents the potential to help establish a scaled AI infrastructure manufacturing platform in India, "a market we believe will become increasingly important for both domestic and global AI infrastructure demand." The St. Petersburg, Florida-based company announced a partnership with Adani earlier this week to make next-gen liquid-cooled AI racks along with servers and storage systems for hyperscalers and enterprise data center customers. The company expects fiscal 2026 adjusted profit per share to be $12.70, compared with its prior forecast of $12.25. It also raised its annual revenue forecast to $35 billion from $34 billion earlier. Analysts on average expect annual revenue of $34.2 billion and adjusted profit per share of about $12.4, according to data compiled by LSEG. The manufacturer, which makes components for Apple, also provides design, production and management solutions to various industrial end markets including technology, automotive, transportation, healthcare, storage and packaging. Jabil posted third-quarter adjusted profit per share of $3.16, compared to analysts' expectations of $3.10. Third-quarter revenue rose 11.8% to $8.75 billion, beating Wall Street estimates of $8.6 billion. (Reporting by Megavarshini G. Somasundaram and Anshuman Tripathy in Bengaluru; Editing by Shreya Biswas) By Anshuman Tripathy and Megavarshini G. Somasundaram