Synopsis
Jabil has raised its profit forecast for 2026, fueled by a surge in demand from AI-powered data centers. This boom in infrastructure investment is proving advantageous for Jabil and similar firms. Additionally, the company reports unexpectedly robust results in its automotive and connected living divisions. As a result, Jabil's stock experienced a modest uptick in premarket trading.Listen to this article in summarized format
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.
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.
Shares of the St. Petersburg, Florida-based company rose 1% in premarket trading.
The company expects fiscal 2026 adjusted profit per share to be $12.70, compared with its previous 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.
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.
