Company Overview
Jabil is one of the most consequentially misunderstood companies in the technology sector. The name — for investors who have heard it — conjures images of a contract electronics assembler: the kind of company that makes printed circuit boards and device casings for other companies’ branded products. That description was accurate in 2015. In 2026, Jabil is the largest pure-play intelligent manufacturing services company in the world, assembling fully integrated AI server rack systems for three of the world’s largest hyperscalers, building liquid-cooled AI compute infrastructure across new facilities in North Carolina, Memphis, and India, and targeting a strategic alliance with Adani Enterprises in India that management has described as “multi-gigawatt AI infrastructure manufacturing.”
On June 17, Jabil reported fiscal Q3 2026 results that reinforced its position as the AI infrastructure pick-and-shovel story most of the market has overlooked. Revenue of $8.75 billion grew 12% year-over-year and beat guidance by $250 million. Core EPS of $3.16 grew 24% year-over-year. Full-year AI-related revenue guidance was raised to $13.6 billion — $500 million above the March outlook — with management noting that AI demand remains “extremely strong.” Full-year guidance was raised to $35 billion in revenue, $12.70 in core EPS, and more than $1.4 billion in adjusted free cash flow. The company also disclosed winning its third hyperscaler customer during the quarter. And CEO Mike Dastoor pre-signaled the most significant forward-looking data point of the call: AI-related revenue growth in FY2027 is expected to be “similar to FY2026 in percentage terms off a larger base” — meaning approximately 50% growth off a $13.6 billion base, implying roughly $20 billion in AI revenue in fiscal 2027.
The Q4 FY2026 report and Annual Investor Briefing arrive in late September — approximately two weeks from now — where management is expected to issue formal FY2027 guidance. CEO Dastoor has already told you what that guidance will look like. Forbes named Jabil one of the three best undervalued stocks for September 2026 specifically because of that upcoming catalyst.
Key Technical and Fundamental Drivers
$13.6 Billion AI Revenue in FY2026 → 50% Growth Pre-Signaled for FY2027
Jabil’s full-year FY2026 AI-related revenue guidance of $13.6 billion represents 50% year-over-year growth from $9 billion in FY2025. CEO Dastoor explicitly stated that AI-related revenue growth in FY2027 is expected to be “similar to FY2026 in percentage terms off a much higher base” — meaning approximately $20 billion in AI revenue in FY2027, growing from an already-record $13.6 billion. A CEO pre-signaling 50% growth in the company’s largest and fastest-growing revenue segment, heading into the quarter and annual briefing where formal guidance will be issued, is the clearest possible forward-looking signal available before the print.
Four Consecutive Guidance Raises → EPS Lifted Every Quarter This Year
Jabil’s full-year core EPS guidance has been raised in every single quarter of fiscal 2026: from $11.00 at Q4 FY25 close, to $11.55 after Q1, to $12.25 after Q2, and to $12.70 after Q3. A company raising its annual EPS guidance in four consecutive quarters — not holding it, not cutting it, raising it sequentially — is demonstrating exactly the kind of operational execution and demand visibility that separates structural compounders from cyclical ones. The pattern also sets an expectation: if the Q4 report delivers another beat-and-raise, it will be the fifth consecutive quarter of upward EPS revisions.
Third Hyperscaler Win → Three of the World’s Largest AI Spenders Now Customers
Jabil disclosed winning its third hyperscaler customer during Q3 FY2026, alongside existing relationships with two prior hyperscale customers. CEO Dastoor said: “The strategy will be similar to previous wins” — meaning deep integration, multi-year contract structure, and expanding scope as the customer deploys more AI infrastructure. With Microsoft, Amazon, and Google each raising AI capex guidance to record levels this earnings season, being the manufacturing partner for three of the world’s five largest AI spenders is a structural position that competitors cannot replicate quickly. Hyperscaler manufacturing relationships are built on certified quality systems, regulatory approvals, and years of production integration — not simply price or capacity.
Q4 FY2026 Report + Annual Investor Briefing → The Specific Near-Term Catalyst
Jabil’s fiscal Q4 2026 report — guided at $9.2–$10.0 billion in revenue and $3.80–$4.20 in core EPS, both above analyst consensus of $9.02 billion and $3.74 — arrives in late September alongside the company’s Annual Investor Briefing where formal FY2027 guidance will be issued for the first time. The Q4 guidance midpoints alone imply a fifth consecutive beat if achieved. The Annual Briefing is where the 50% AI growth pre-signal becomes formal guidance — and where the market gets its first comprehensive look at the FY2027 P&L including the third hyperscaler ramp, the Adani capacity expansion timeline, and the margin trajectory above the 6% core operating margin target management has outlined.
Asset-Light Despite Scale → CapEx Stays at 1.5–2% of Revenue Through the Buildout
Jabil’s most underappreciated financial characteristic is its asset-light model relative to its revenue scale. Despite expanding capacity approximately 10% globally — adding facilities in North Carolina, Memphis, India, and other locations — management has maintained capital expenditure discipline at 1.5–2% of revenue. For a company guiding $35 billion in annual revenue, that translates to approximately $525–$700 million in annual capex against more than $1.4 billion in adjusted free cash flow — a capital intensity ratio that allows the company to fund its AI manufacturing buildout and still generate substantial free cash flow for buybacks simultaneously. $291 million was repurchased in Q3 alone under the $1 billion buyback authorization.
Market Takeaway
Jabil’s setup entering Tuesday is defined by one of the clearest CEO pre-commitments available in any earnings setup this year. When the CEO of a $35 billion revenue company tells the market — on a public earnings call — that AI revenue growth in the coming fiscal year will be “similar in percentage terms off a much higher base,” he is providing the most specific possible forward guidance without issuing formal numbers. Fifty percent growth off $13.6 billion implies approximately $20 billion in AI revenue in FY2027. The Q4 report and Annual Briefing in late September will either confirm that pre-signal or — and this is the key risk — reveal that component shortages in HBM and high-density PCBs, or ramp inefficiencies in new capacity, are compressing the timing of that growth.
The honest risks are real. Net inventory days rose to 68 in Q3 from 59 a year ago — above the 55–60 day target — as $200 million of finished goods sat in the warehouse at quarter-end awaiting customer shipment. Management attributed this to timing of Intelligent Infrastructure shipments rather than demand weakness, expecting normalization in Q4. Component shortages in high-bandwidth memory and DDR4 have been flagged, with management noting that guidance already reflects those constraints. The Adani India alliance — potentially a multi-gigawatt AI manufacturing opportunity — is an FY2028 event, not FY2027, meaning the timeline to its contribution is longer than the AI revenue acceleration timeline suggests. And with the market entering this week focused on the Fed’s rate hike decision tomorrow, a broader risk-off session on Wednesday following the hike could create a better entry point than today’s open for readers who are watching the setup. For traders watching Tuesday’s session as the FOMC meeting begins and the market holds its breath ahead of tomorrow’s decision, Jabil offers the AI infrastructure story that the earnings season’s most dramatic prints — Nvidia, Broadcom, Celestica, Super Micro — have validated from the demand side, now playing out on the manufacturing side with four consecutive guidance raises and a CEO who has already told you what FY2027 looks like.