Jabil Inc

Q3 delivered strong upside across the board (and ahead of outlook): Revenue ~$8.8B (+12% YoY) and ~$250M above the midpoint of guidance. GAAP EPS $2.59; core EPS $3.16 (+24% YoY). Core operating margin 5.8% (GAAP operating income $445M, 5.1% margin). Also free cash flow better than expected: CFO $535M, capex $176M, adjusted FCF $359M.

Segment performance + where the upside came from: - Intelligent Infrastructure: $4.2B (+21% YoY), growth broad-based; networking +50%, driven by strong ramp in India; AI/cloud + data center demand strong. This is the key growth engine. - Regulated Industries: $3.2B (+4% YoY), above outlook; upside largely from Automotive & Transportation (stronger demand than expected). - Connected Living & Digital Commerce: $1.4B (+5% YoY), above outlook; upside mainly from Connected Living (consumer demand better than cautious guide).

Full-year FY26 guidance raised (good), with AI growth underpinned (opportunity): - FY26 revenue ~ $35B (~+17% YoY) (raised from March ~$34B). - Core operating margin ~5.8% (improved ~10 bps). - Core diluted EPS ~ $12.70. - Adjusted free cash flow > $1.4B (raised from prior outlook > $1.3B). - AI-related revenue now ~ $13.6B in FY26, +$500M vs March and up from ~$9B in FY25 (~50% YoY AI growth). CEO expects FY27 AI growth % to be similar to FY26 (notably strong given the higher base).