Jabil (JBL) Q3 2026 earnings summary

Executive summary

• Q3 net revenue reached $8.8 billion, up 12% year-over-year, with broad-based strength across segments and strong AI infrastructure demand.

• Core operating margin was 5.8%, and core diluted EPS was $3.16 for the quarter, both exceeding expectations.

• Diversified business model and portfolio contributed to resilience and sustainable growth, with notable performance in Intelligent Infrastructure and Regulated Industries.

• Growth was also supported by improved Automotive and Connected Living segments.

• Major acquisitions, including Hanley Energy Group and Rebound Technologies, expanded capabilities in data center infrastructure and supply chain services.

Financial highlights

• Q3 revenue was $8.8 billion, up from $7.8 billion year-over-year; GAAP operating income was $445 million, core operating income $504 million.

• GAAP diluted EPS was $2.59; core diluted EPS was $3.16, up 24% year-over-year.

• Free cash flow for Q3 was $359 million; cash flow from operations was $535 million.

• Gross profit margin improved to 9.5% for the quarter; operating margin (GAAP) was 5.1%, core operating margin 5.8%.

• Cash and cash equivalents at quarter-end were $1.36 billion.

Outlook and guidance

• Q4 revenue expected between $9.2 billion and $10 billion, with core operating income projected at $589 million–$649 million and core EPS $3.80–$4.20.

• Fiscal 2026 outlook raised: revenue $35 billion, core operating margin 5.8%, core EPS $12.70, adjusted free cash flow over $1.4 billion.

• AI-related revenue for FY26 now expected at $13.6 billion, up from $9 billion in FY25; similar growth rate anticipated for FY27 with margin expected to exceed 6%.

• Capital expenditures for FY26 expected at 1.0%–1.5% of net revenue; for FY27, 1.5%–2.0%.

• No material impact expected from recent U.S. tax legislation or global minimum tax changes for the remainder of FY26.