Jabil reports strong quarter, shares hover near record high on NASDAQ

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-26, 10:39.

Jabil Inc. (US46612W1036) underpins its elevated NASDAQ valuation with a strong fiscal third quarter and raised full-year cash flow guidance. The electronics manufacturing services group reports double-digit revenue growth and highlights AI infrastructure as its fastest-growing business, according to a recent Zacks analysis.Zacks commentary on Jabil's AI-driven rally

What the latest numbers show

For its fiscal third quarter, Jabil delivered revenue of about 8.75 billion US dollars, an 11.8 percent year-over-year increase, and core diluted earnings per share of 3.16 dollars, up 23.9 percent versus the prior-year period.Detailed Zacks earnings review Core operating income reached roughly 504 million dollars, implying a core operating margin of 5.8 percent, a marked improvement from the previous fiscal year.Zacks analysis of Jabil's AI infrastructure business

Cash generation and guidance

Cash generation was robust in the quarter, with adjusted free cash flow of approximately 359 million dollars, supporting a higher full-year outlook.Zacks commentary on cash flow and guidance Management now expects adjusted free cash flow of more than 1.4 billion dollars for fiscal 2026 and has lifted its full-year revenue outlook to around 35 billion dollars alongside projected core operating margins of about 5.8 percent.Zacks report on Jabil's long-term trends

AI infrastructure and sector peers

AI infrastructure has become Jabil's fastest-growing business line, as hyperscale cloud providers and large technology firms invest heavily in next-generation computing capacity.Zacks analysis of AI infrastructure demand This positions the group alongside manufacturing-focused peers exposed to AI hardware such as Flex and Foxconn, while its diversified platform also spans healthcare, industrial and consumer segments.

Valuation and NASDAQ context

Following a powerful AI-driven rally, Jabil's shares trade at a forward 12-month price-earnings multiple of around 25.5, close to the electronics manufacturing sub-industry average of about 25.9 according to Zacks.Zacks valuation comparison Zacks assigns the stock a Rank #2 (Buy) with a Momentum Score of A, Growth Score of B and VGM Score of A, while the Value Score of C underlines the need for valuation discipline after the rally.Zacks factor scoring for Jabil

The products behind Jabil's growth

Jabil's business model centers on contract manufacturing and design services for complex electronic and mechanical products, ranging from data center hardware and network infrastructure to medical devices and industrial equipment. The company also provides advanced manufacturing solutions for AI servers and related components, a segment that has become a core growth driver within its diversified portfolio.

Where the stock trades today

The Jabil shares (US46612W1036) last closed on NASDAQ at 374.76 US dollars on 2026-06-25, 16:00 ET, implying a market capitalization of roughly 39.5 billion US dollars.TradingKey ownership and price data for Jabil

This article provides factual information on the Jabil shares and does not constitute investment advice or a recommendation to buy or sell securities. Historical performance and analyst assessments are not a reliable indicator of future results.