Jabil delivered a strong Q3 FY2026 with revenue of $8.8 billion (up 12% YoY, $250M above guidance) and core EPS of $3.16 (up 24% YoY), driven by broad-based outperformance across all three segments but particularly by accelerating AI infrastructure demand. Management raised full-year FY2026 guidance to $35 billion revenue (17% growth), 5.8% core operating margin, $12.70 core EPS, and >$1.4 billion adjusted free cash flow. The standout narrative is Intelligent Infrastructure, where AI-related revenue is now expected to reach $13.6 billion in FY2026, $500 million higher than March guidance and representing 50% YoY growth, underpinned by wins with a third hyperscaler customer and strong execution across compute, storage, networking, and power/cooling capabilities. Beyond the headline AI strength, Jabil is seeing meaningful recovery in previously soft end markets: Automotive & Transportation beat expectations and is now guided to $4.4 billion (up from $4.2 billion), Renewables is improving on safe-harbor projects and AI data-center power demand, and Connected Living surprised to the upside on consumer devices. The company is expanding manufacturing footprint by
Key Themes
Segment momentum and mix
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several
Segment momentum and mix
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several
Segment momentum and mix
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several
Segment momentum and mix
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several
Notable Quotes
“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”
Chief Executive Officer
“We are confident in the trajectory of the business and the investments we are making across the portfolio, and we expect the momentum we saw this quarter to carry into the back half of the year.”
Report generated on Sep 29, 2026
AI-generated earnings analysis. Not investment advice.
10%
globally (North Carolina, Memphis, India, Mexico) while maintaining disciplined
1.5%
-2%
CapEx intensity, a critical point given the asset-light model that has defined Jabil's competitive advantage. Management signaled confidence in sustaining similar percentage AI growth rates in FY2027 off a much larger revenue base, and flagged a strategic partnership with Adani Enterprises to build multi-gigawatt AI infrastructure manufacturing capacity in India, though this is positioned as an FY2028+ opportunity pending definitive framework completion. On margins, management expects core operating margin above
6%
in FY2027, citing improving mix (higher-value capabilities like liquid cooling and silicon photonics gaining share within Intelligent Infrastructure), capacity utilization leverage as new facilities ramp through early calendar 2027, and the accretive contribution from the Hanley acquisition (double-digit margins in modular power and services). The Q4 guidance implies
6.4%
core operating margin at the midpoint, consistent with typical Q4 seasonality, and management acknowledged that early-stage ramps in new capacity will create some near-term margin drag before full utilization is achieved. Free cash flow remains robust at
$359 million
in Q3, with working capital normalizing as inventory timing unwinds. The macro backdrop, persistent AI infrastructure capex cycles, improving automotive export demand from China, and government support for manufacturing in India, is clearly tailwind-driven, though management appropriately flagged supply-chain risks (HBM, high-density PCB lead times, DDR4 shortages) as factors already embedded in guidance. Investors should monitor: (1) whether the third hyperscaler ramp materializes as expected (couple hundred million in FY2027, scaling to billions by FY2028); (2) capacity utilization and margin accretion as North Carolina, Memphis, and India facilities come online through early 2027; (3) the Adani partnership progress and any capital structure implications; and (4) sustainability of AI growth rates if hyperscaler capex cycles moderate.
Chief Executive Officer
Q&A Summary
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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