Jabil Inc. (JBL) is riding the wave of artificial intelligence demand with precision.
The Florida-based electronics manufacturing giant reported its strongest earnings surprise in years, lifted its full-year outlook, and unveiled a $500 million plan to expand its U.S. manufacturing footprint. With growth accelerating in cloud and data center infrastructure—and Wall Street taking notice—Jabil’s pivot toward next-generation technologies is beginning to pay off.
AI Momentum Drives Q3 Blowout
Jabil reported adjusted earnings of $2.55 per share for the third fiscal quarter, outpacing analyst estimates by nearly 25 cents. Revenue jumped nearly 16% year-over-year to $7.83 billion, ending a streak of seven consecutive quarters of top-line declines.
Behind the numbers is a surge in demand from cloud, AI, and data center infrastructure customers. Jabil’s Intelligent Infrastructure segment saw revenue soar 51% from the same quarter last year to $3.4 billion—more than $1 out of every $3 the company earned. This growth more than offset softness in electric vehicles, renewables, and 5G-related products.
Margins also improved, with the company’s core operating margin rising to 5.4%, up from 5.2% a year earlier. That may not seem high, but for a contract manufacturer operating on razor-thin profits, the uptick is notable.
$500 Million Bet on American Manufacturing
Jabil isn’t just reporting strong numbers—it’s doubling down on future growth. The company announced a multi-year, half-billion-dollar investment to expand its manufacturing capabilities in the Southeastern U.S., aimed squarely at supporting AI and cloud data center customers.
The new facilities, expected to be operational by mid-2026, will enhance Jabil’s ability to serve high-demand sectors such as liquid cooling, server rack systems, and power infrastructure. This move follows the company’s recent acquisition of Mikros Technologies, a thermal management specialist that services the AI and semiconductor industries.
“This is more than an expansion—it’s a statement,” said Jabil Executive Vice President Matt Crowley. “To secure America’s future in artificial intelligence, we must build the infrastructure powering it right here at home.”
A Strategic Shift Toward Intelligent Infrastructure
Jabil’s long-term strategy is becoming clearer: transition from a broad electronics manufacturing services model toward specialization in high-margin, next-gen technologies. Its Intelligent Infrastructure business, now the largest segment, embodies that shift. While revenues from Regulated Industries (including EVs and renewables) and Connected Living products remain flat or down, data center infrastructure has become the company’s growth engine.
For the full fiscal year, Jabil now expects adjusted earnings of $9.33 per share—up from $8.95 in its prior forecast—and revenue of $29 billion, up from $27.9 billion. That’s an upgrade of more than $1 billion in sales. The company also expects to generate over $1.2 billion in free cash flow this year, giving it ample room to invest, repurchase shares, and weather any macroeconomic turbulence.
Conclusion
Jabil’s third-quarter report delivered more than just solid numbers. It confirmed the company's successful pivot toward high-demand sectors powered by artificial intelligence and cloud computing. With a bold $500 million U.S. investment, a robust earnings beat, and guidance pointing upward, Jabil is signaling confidence in its strategy—and the market is responding. For investors tracking the AI supply chain, Jabil is quickly becoming a name to watch.
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