Jabil Posts Strong Q3 Results, Raises Guidance as AI Infrastructure Demand Powers Growth

Jabil Inc. (NYSE: JBL) delivered robust third-quarter results for fiscal year 2025, exceeding Wall Street expectations on both revenue and core earnings, while offering upbeat guidance that sparked a premarket rally in the stock. For investors, Jabil’s results carry more weight than the numbers alone: as a top-tier electronics manufacturing services (EMS) provider serving hyperscalers, semiconductor leaders, and cloud infrastructure players, Jabil offers valuable insights into demand trends across some of tech’s most critical segments—including AI, semiconductors, and capital equipment. Its positioning also makes it a strong early-cycle indicator for shifts in global tech manufacturing and investment.

In Q3, Jabil posted revenue of $7.8 billion, well ahead of the $7.06 billion consensus and up from $6.77 billion a year ago. Adjusted earnings per share came in at $2.55, beating the Street’s $2.31 estimate and rising from $1.06 in the prior-year quarter. Core operating income reached $420 million, topping expectations of $377 million. While GAAP EPS of $2.03 fell shy of forecasts due to non-core factors, the strong non-GAAP results underscore Jabil’s operational leverage and strategic execution.

CEO Mike Dastoor credited the outperformance to strength in key verticals like cloud infrastructure, data centers, and capital equipment—sectors that are increasingly driven by AI investment. Jabil’s Intelligent Infrastructure segment remains the central growth engine, with rising AI workloads fueling orders for thermal management systems, high-performance computing components, and customized server builds. While areas like EVs, renewables, and 5G showed some softness, the company’s broad diversification helped stabilize results.

The quarter marked a significant year-over-year improvement, reflecting not only secular demand trends but also Jabil’s disciplined cost structure and continued portfolio optimization. Compared to Q3 2024, Jabil’s revenue rose over $1 billion, and core EPS more than doubled. The company’s ability to maintain high-margin performance while navigating mixed demand environments speaks to its mature execution and high-value position in clients’ supply chains.

In response to its strong performance, Jabil raised its full-year fiscal 2025 guidance. The company now expects total revenue of $29 billion (up from $27.9 billion previously), with adjusted EPS of $9.33 versus a prior outlook of $8.95. Fourth-quarter guidance calls for revenue between $7.1 billion and $7.8 billion and core EPS between $2.64 and $3.04—again, ahead of most analyst projections.

Beyond the financials, Jabil announced a $500 million investment to expand its U.S. manufacturing footprint in the Southeast, aimed at scaling production capacity for AI and cloud data center infrastructure. The new facility—expected to go operational by mid-2026—will add large-scale capabilities to serve hyperscalers and government-backed projects. This effort complements Jabil’s recent acquisition of Mikros Technologies, a leader in liquid cooling and thermal systems, which is key to supporting AI servers and next-gen compute architectures.

With rising geopolitical tensions and evolving trade policies, Jabil's deepening U.S. presence also carries strategic value. As Matt Crowley, EVP of Global Business Units, noted, domestic manufacturing for AI infrastructure is not just economically advantageous—it’s increasingly viewed as a matter of national security.

Jabil’s commentary also emphasized capital discipline, with core operating margins expected to remain healthy at 5.4% for the year. The company sees adjusted free cash flow surpassing $1.2 billion, enabling ongoing share repurchases and investments in high-return segments. These priorities align with Jabil’s push to focus more on margin-rich businesses while reducing exposure to lower-margin commodity segments.

Shares of Jabil surged over 9% in premarket trading following the report, reflecting investor confidence in the outlook and in Jabil’s strategic positioning within the AI and digital infrastructure wave. However, the stock has pulled back highlighting the cautious tone in markets.

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With its hands on the pulse of critical hardware trends—from semis to cloud scale-outs—Jabil’s performance and forecasts serve as a real-time indicator for broader tech and industrial cycles.

In sum, Jabil’s Q3 print was not only a beat—it was a statement. In an environment where investors are hungry for clarity on AI-driven demand, supply chain trends, and capital investment plans, Jabil stands out as a vital signal stock. As infrastructure investments ramp globally, the company appears well-positioned to ride the wave while delivering consistent earnings power and cash flow.