Jabil reported fiscal third-quarter 2026 results before the market opened today that exceeded Wall Street expectations across every key metric, with the electronics manufacturing services provider once again pointing to artificial intelligence infrastructure demand as the primary driver of its outperformance. Net revenue came in at $8.8 billion, ahead of the consensus estimate of roughly $8.61 billion, while core non-GAAP earnings per share of $3.16 topped the Street's $3.10 forecast.
On a GAAP basis, Jabil posted operating income of $445 million and diluted earnings per share of $2.59. The company's core operating income, which strips out certain one-time items, reached $504 million. CEO Mike Dastoor said the quarter came in ahead of the company's own expectations across revenue, core operating margin, core EPS, and free cash flow, adding that AI infrastructure demand remains extremely strong and that the company's full-year AI-related revenue outlook has moved meaningfully higher as a result.
Beyond the AI-driven segments, Dastoor pointed to better-than-expected performance in areas of the business that had previously been under pressure, specifically automotive and connected living, as evidence that the company's diversified manufacturing model is working across multiple end markets simultaneously rather than relying solely on data center and AI hardware demand.
Looking ahead, Jabil raised its outlook for the fiscal fourth quarter, now guiding for net revenue between $9.2 billion and $10.0 billion, GAAP operating income of $526 million to $586 million, and GAAP diluted earnings per share of $3.24 to $3.64. On a core non-GAAP basis, the company guided to operating income of $589 million to $649 million and core EPS of $3.80 to $4.20, a range that would represent another step up from the quarter just reported.
The results extend a string of upside surprises for Jabil, which has beaten consensus estimates in each of its prior several quarterly reports this fiscal year and previously raised its full-year revenue guidance to $34 billion from $32.4 billion following a strong second quarter. Shares have rallied more than 50% so far in 2026 and have roughly doubled over the trailing twelve months, as investors increasingly view the company less as a traditional contract manufacturer and more as a direct beneficiary of the broader AI infrastructure buildout, including liquid cooling, power products, and silicon photonics.
That rapid re-rating has drawn some caution from analysts and valuation models, which note that Jabil's price-to-earnings multiple has expanded significantly over the past year and that elevated expectations leave less room for disappointment in future quarters. Options markets had priced in an implied move of roughly 8.9% around today's report, reflecting the high stakes investors placed on the print.
Management's commentary suggests confidence that the company's AI-related revenue trajectory, which it has previously said could approach $13.1 billion for the full year, remains intact or possibly understated given today's guidance increase. Investors will be watching subsequent commentary from peers in the contract manufacturing and AI hardware supply chain for confirmation that the demand environment Jabil described is broad-based rather than company-specific.