Jabil Inc. delivered results that caught Wall Street’s attention. The contract manufacturer posted fiscal third-quarter 2026 revenue of $8.75 billion. That figure beat expectations and rose 12 percent from a year earlier. Adjusted earnings came in at $3.16 a share. Analysts had modeled $3.10. Shares climbed after the report.
But the real story sits inside the guidance. Jabil now projects roughly $13.6 billion in AI-related revenue for fiscal 2026. The number sits $500 million above the forecast offered three months earlier. It also marks a sharp jump from the $9 billion recorded in fiscal 2025. Yahoo Finance laid out the details hours after the earnings call.
Chief Executive Officer Mike Dastoor did not hedge. “AI infrastructure demand remains extremely strong,” he said. The comment came early in the discussion. It set the tone for everything that followed. Dastoor pointed to Jabil’s ability to handle compute, storage, networking, power delivery, advanced cooling and full rack assembly under one roof. Customers want that end-to-end control. They are scaling fast.
The company added its third hyperscale customer during the quarter. Management expects the account to contribute a few hundred million dollars in fiscal 2027. By fiscal 2028 the relationship could exceed a billion dollars. That trajectory explains the raised outlook. It also signals confidence that the AI buildout has legs.
Intelligent Infrastructure revenue jumped 21 percent in the quarter. The segment now drives the majority of Jabil’s growth. Regulated Industries managed a more modest 4 percent gain. Connected Living and Digital Commerce rose 5 percent. Core EBITDA more than doubled to $654 million from $261 million a year ago. The margin expansion tells its own story about pricing power in high-end programs.
Capacity sits at the center of the plan. Chief Financial Officer Greg Hebard told investors the company will expand its global manufacturing footprint by about 10 percent. New sites and line extensions will come online in North Carolina, Memphis, India, Mexico and elsewhere. Capital expenditures should stay inside the long-term band of 1.5 percent to 2 percent of revenue. Similar AI revenue growth looks achievable in fiscal 2027.
The North Carolina project already carries momentum. One customer has committed. Others remain in active talks. Production there should begin ramping by January. The timing lines up with peak demand for next-generation racks and liquid-cooled systems. Jabil selected the site after months of evaluation. It will serve domestic hyperscalers wary of offshore supply chains.
Last year the company announced a broader $500 million multi-year investment across the Southeast United States. The goal remains straightforward. Support cloud and AI data center customers with large-scale domestic production. The effort builds on the 2024 acquisition of Mikros Technologies, which brought liquid-cooling expertise in-house. It also follows the purchase of Hanley Energy Group for power management capabilities.
In a separate June 2025 release Jabil framed the domestic push in sharper terms. Matt Crowley, executive vice president of global business units, said domestic manufacturing had become “a matter of national security.” He added that building AI hardware at home secures America’s position in the technology race. Dastoor echoed the sentiment. “While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world’s leading brands navigate challenges with agility and resilience,” he stated in the official Jabil investor release.
Yet the United States is only part of the picture. On June 15 Jabil revealed plans for a strategic alliance with Adani Enterprises in India. The two organizations intend to create a vertically integrated platform for GW-scale AI rack manufacturing and full data center infrastructure. The effort targets both local demand and global export markets.
Jabil brings six decades of engineering and hyperscale experience. Adani contributes green energy assets, logistics networks and a growing portfolio of domestic data centers. Together they aim to produce liquid-cooled racks, servers, storage systems, power distribution units, coolant distribution units and thermal management hardware. The platform could address a global opportunity that exceeds $3 trillion over the next seven years, according to the companies’ joint announcement.
Dastoor welcomed the move. “This strategic collaboration with Adani Group is another step forward in our efforts to create long-term value for customers throughout the AI ecosystem by offering scalable solutions across the product lifecycle,” he said. “By combining Jabil’s more than sixty years of engineering expertise and advanced manufacturing capabilities with Adani’s formidable infrastructure and energy platform, we can expect to execute down to the rack level for hyperscalers and enterprises here in India and across the globe.” The full statement appears in the Jabil press release on the Adani partnership.
India’s data center capacity is forecast to reach between 5 and 8 gigawatts by 2030. Hyperscalers have committed more than $50 billion across data centers, cloud and AI projects there. A new tax holiday for data centers through 2047 adds further incentive. Adani itself plans to invest $100 billion to develop 5 gigawatts of green-energy-powered AI-ready facilities by 2035. The alignment looks obvious.
Jabil recorded $29.8 billion in total revenue for fiscal 2025. AI programs already represent a material and fast-growing share. The $13.6 billion projection for fiscal 2026 would push that category close to 39 percent of company-wide sales. Such concentration carries risks. Supply chain disruptions, power shortages or slower hyperscaler spending could change the math. Management acknowledged those variables but pointed to diversified backlog and long-term contracts as buffers.
Analysts have taken notice. The stock has climbed more than 80 percent so far in 2026 on the back of repeated beat-and-raise quarters. Recent coverage from Reuters and Tampa Bay Business Journal highlighted the same themes: accelerating demand for data center hardware and Jabil’s expanding role as a critical supplier.
Still, execution will decide the outcome. Liquid cooling, high-density racks and integrated power systems demand precision manufacturing at volume. Jabil has invested heavily in automation, process controls and workforce training. New capacity must come online on schedule. Customer qualifications cannot slip. The margin profile depends on keeping utilization rates high across these specialized lines.
Dastoor sounded measured on the call. Demand looks strong. The pipeline looks healthy. Capacity additions are progressing. Yet he stopped short of promising endless acceleration. The company will stay disciplined on capital allocation. It will avoid overbuilding. That tone suggests executives believe the AI infrastructure wave has years left to run. But they also remember past cycles in electronics manufacturing.
For now the numbers support optimism. Revenue growth, margin expansion, backlog conversion and geographic diversification all point higher. The partnership in India opens a new growth vector at a moment when U.S. customers seek both speed and supply chain resilience. Jabil has positioned itself near the center of the largest infrastructure buildout in a generation. Whether that positioning translates into sustained outperformance depends on flawless delivery in the quarters ahead.
And the market is watching closely. So are the hyperscalers placing billion-dollar bets on AI. They need partners who can scale with them. Jabil just told them it intends to be one.
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