Jabil Inc (NYSE:JBL) shares moved higher after the electronics manufacturing services company reported fiscal third quarter financial results that exceeded Wall Street estimates and raised its full-year guidance.
For the quarter, the electronics and manufacturing services company posted net revenue of $8.8 billion, outpacing analyst expectations of $8.55 billion.
Jabil reported core diluted earnings per share of $3.16, beating the consensus estimate of $3.08 per share.
The quarterly outperformance was driven primarily by sustained momentum in technology sectors alongside stabilization in segments that had previously faced headwinds.
Jabil CEO Mike Dastoor noted that artificial intelligence infrastructure demand remains extremely strong, prompting a meaningful increase to the company's full-year AI-related revenue outlook.
“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” Dastoor said. “At the same time, we continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in Automotive and Connected Living.”
Citing this robust demand and broad portfolio improvement, Jabil raised its full-year guidance for fiscal year 2026. The company now expects net revenue of $35 billion, a non-GAAP core operating margin of 5.8%, and core diluted earnings per share of $12.70. Adjusted free cash flow for the full year is now projected to exceed $1.4 billion.
For the upcoming fourth quarter of fiscal 2026, Jabil issued guidance projecting net revenue between $9.2 billion and $10.0 billion. Core diluted earnings per share for the fourth quarter are estimated to fall within the range of $3.80 to $4.20, while GAAP diluted earnings are expected between $3.24 and $3.64 per share.
Management indicated that the current momentum provides a favorable baseline as the company looks ahead toward the setup for fiscal year 2027.
Shares of Jabil added 2% at about $382 on Wednesday afternoon, paring gains of as much as 14% earlier in the session.