Jabil Inc.

Q3 FY2026 revenue was approximately $8.8 billion, up 12% year over year and $250 million above the midpoint of outlook. GAAP operating income was $445 million, or 5.1% of revenue; core operating income was $504 million, with core operating margin of 5.8%. GAAP diluted EPS was $2.59, and core diluted EPS was $3.16, up 24% year over year. Cash flow from operations was $535 million, net capex was $176 million, and adjusted free cash flow was $359 million. The balance sheet ended with $1.4 billion in cash and debt to core EBITDA of 1.3x. For the full year, Jabil raised adjusted free cash flow guidance to more than $1.4 billion from more than $1.3 billion, and now expects FY2026 revenue of approximately $35 billion, core operating margin of approximately 5.8%, and core diluted EPS of approximately $12.70. For Q4, company revenue guidance was $9.2 billion-$10 billion, core operating income was guided to $589 million-$649 million, and core diluted EPS to $3.80-$4.20. The company also expects Q4 net interest expense of about $80 million and a core tax rate of about 21%.

Mike Dastoor framed the quarter as validation of Jabil’s diversified model, saying the company is delivering strong growth across AI infrastructure, automotive, healthcare, renewables, and consumer/end-market channels. His tone was upbeat but measured: he highlighted the third hyperscaler win, strong AI demand, and new opportunities such as the Adani alliance, while repeatedly noting that the FY2027 discussion was only an early view, not formal guidance. He emphasized that Jabil is expanding capabilities end-to-end in compute, storage, networking, power, cooling, and rack integration, and said the model remains asset-light and focused on profitable growth.

Greg Hebard said the quarter came in ahead of expectations across revenue, margin, EPS, and free cash flow, with broad-based upside across the portfolio. He cited Q3 adjusted free cash flow of $359 million, cash from operations of $535 million, net capex of $176 million, and year-end cash of $1.4 billion, while noting inventory days were 84, or about 68 net of customer deposits, above the normal 55-60 day target because of Intelligent Infrastructure shipment timing. He also said Q4 is usually the highest-margin quarter and guided to core margin of about 6.4% at the midpoint, while maintaining CapEx discipline at 1.5%-2% of sales and planning to repurchase the remaining shares under the $1 billion authorization in Q4.

Analysts focused heavily on AI growth, the third hyperscaler win, capacity, and whether Jabil can sustain margins while ramping new facilities. Management said the third hyperscaler is expected to start around a couple hundred million dollars in FY2027 and could expand toward a billion dollars and beyond in 2028, but the exact facility allocation is still being worked out. On capacity, management said the footprint can support the FY2027 AI ramp, with about 10% incremental footprint being added globally and ramp timing phased through calendar 2027. Analysts also pressed on supply constraints and margin trajectory; management acknowledged component shortages in items like HBM and high-density PCBs, but said those assumptions are already built into the outlook and that FY2027 margins should move above 6% as mix improves and new capacity ramps.