Jabil Surges 9% as AI Demand Powers Strong Q3 Earnings, Revenue Jumps 16%

By Ishika Dangayach - Jun 18, 2025, 03:48 AM ET

The Florida-based electronics manufacturer beat Wall Street expectations with adjusted EPS of $2.55 and revenue of $7.83B. CEO Mike Dastoor says AI-fueled growth in cloud and infrastructure is driving record profitability.

Jabil Inc. (NYSE: JBL) on Tuesday reported f iscal third-quarter profit of $222 million.

The St. Petersburg, Florida-based electronics manufacturing services provider said it had net income of $2.03 per share. Earnings, adjusted for one-time gains and costs, were $2.55 per share — beating Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $2.33 per share.

Jabil posted revenue of $7.83 billion for the quarter, marking a 16% year-over-year increase.

The company credited surging artificial intelligence (AI) demand for much of its performance, helping offset weakness in sectors such as electric vehicles, renewables, and 5G.

"We delivered a strong third quarter, outperforming expectations across key end-markets such as cloud, data center infrastructure, and capital equipment,” said CEO Mike Dastoor. "Our Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand. Despite softness in areas like EVs, Renewables, and 5G, our diversified portfolio and operational discipline have us tracking toward record core earnings per share.”

Core diluted earnings per share rose 35% to $2.55, up from $1.89 in the same quarter last year. U.S. GAAP diluted EPS nearly doubled year-over-year to $2.03 from $1.06. Core operating income also climbed to $420 million from $350 million a year earlier, maintaining a core operating margin of 5.4%.

Investors responded positively, pushing Jabil shares up nearly 9% on the day. The stock is up 19.31% over the past month and 36.50% in the last six months. Over the past year, shares have returned 65.98%, with a 37.20% gain year-to-date.

Looking ahead, Jabil expects fourth-quarter revenue between $7.1 billion and $7.8 billion, with core diluted EPS ranging from $2.64 to $3.04.

Fiscal Year 2025 Outlook:

• Net revenue: $29 billion

• Core operating margin (Non-GAAP): 5.4%

• Core diluted earnings per share (Non-GAAP): $9.33

• Adjusted free cash flow (Non-GAAP): Over $1.2 billion