Jabil's fiscal Q3 2026 revenue rose 11.8% to $8.75B and GAAP EPS 27.6% to $2.59, led by 21% growth in its data-center and networking segment; full-year guidance was raised to $35B revenue and $12.70 core EPS.
Revenue
$8.8B
+11.8% YoY
Net income
$275M
+23.9% YoY
Diluted EPS
$2.59
+27.6% YoY
Operating margin
5.1%
Overview
Jabil builds products for other companies: it runs the factories, supply chains and engineering behind items such as data-center server racks and networking gear, car electronics, medical devices and consumer products. In its fiscal third quarter of 2026 (the three months ended May 31, 2026), revenue rose 11.8% to $8.75 billion and GAAP diluted earnings per share rose 27.6% to $2.59. Almost all of the growth came from one division, Intelligent Infrastructure, which makes equipment for cloud data centers and communications networks: its revenue grew 21% and its profit grew 41%, while Jabil's other two divisions grew revenue about 4–5%.
The 10-Q (filed June 30, 2026) covers the quarter; management's guidance comes from the earnings release filed June 17, 2026, in which Jabil raised its fiscal 2026 outlook. Jabil's fiscal year ends August 31, so this is the last quarter reported before full-year results.
Key metrics
Metric
Q3 FY2026
Q3 FY2025
YoY Change
Net revenue
$8,751M
$7,828M
+11.8%
Gross margin
9.5%
8.7%
+0.8 pts
GAAP operating income
$445M
$403M
+10.4%
GAAP operating margin
5.1%
5.1%
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"Core" figures are Jabil's own adjusted measures: they strip out items such as intangible amortization, stock-based compensation, restructuring charges and gains or losses on selling businesses. Operating margin is the share of revenue left after the costs of running the business, before interest and tax. Jabil does not report free cash flow for the quarter alone, only for the year to date.
Segments: one engine, two steady divisions
Segment income is Jabil's measure of each division's operating profit before corporate items; the three segments add up to the $504M core operating income.
Segment
Revenue Q3 FY26
Revenue Q3 FY25
YoY
Segment income Q3 FY26
Segment income Q3 FY25
Margin Q3 FY26
Margin Q3 FY25
Intelligent Infrastructure
$4,169M
$3,433M
+21.4%
$256M
$181M
6.1%
5.3%
Regulated Industries
$3,181M
$3,056M
+4.1%
$180M
$168M
5.6%
5.5%
Connected Living & Digital Commerce
$1,401M
$1,339M
+4.6%
$68M
$71M
4.9%
5.3%
Total
$8,751M
$7,828M
+11.8%
$504M
$420M
5.8%
5.4%
Intelligent Infrastructure (cloud and data-center hardware, networking, capital equipment) is now 48% of revenue, up from 44% a year ago. The 10-Q attributes its 21% growth to three pieces: networking and communications added 10 percentage points, cloud and data center infrastructure 8 points, and capital equipment 3 points. Over nine months the segment grew 41%, with cloud and data center contributing 31 points, so this quarter's 21% is a slower pace than earlier in the year, and networking rather than cloud led it. Segment income rose 41% ($181M to $256M) and margin widened to 6.1%; the 10-Q credits the company-wide gross-margin increase "primarily" to "product mix in our Intelligent Infrastructure segment."
Regulated Industries (automotive and transportation, healthcare and packaging, renewable-energy infrastructure) grew 4%, which the 10-Q attributes to automotive and transportation. In the earnings release, the CEO said Automotive, which had previously been under pressure, performed better than expected.
Connected Living & Digital Commerce (consumer devices and retail/warehouse automation) grew 5%: digital commerce added 13 points and connected living took away 8. It was the only segment where profit fell, with segment income down to $68M from $71M. Over nine months its revenue is still down 5%.
AI-related revenue: neither the 10-Q nor the earnings release gives a dollar figure for AI-related revenue. The release says only that "AI infrastructure demand remains extremely strong" and that the full-year AI-related revenue outlook "is now meaningfully higher," so no AI figure appears in this report.
Why GAAP profit grew more slowly than core profit
GAAP operating income rose only 10.4% while core operating income rose 20%. The gap mostly comes from last year: Q3 FY2025 included a $45M gain from post-closing adjustments on the 2024 sale of Jabil's Mobility business, which boosted GAAP operating income then but is excluded from core. Stock-based compensation also rose to $25M from $19M. Lower down the income statement, last year's quarter had a $46M loss from writing down an investment in preferred stock, which is why GAAP net income (+23.9%) grew faster than GAAP operating income. The effective tax rate rose to 24.9% from 23.4%.
Selling, general and administrative costs rose to $340M from $274M (+24%, faster than revenue), which the 10-Q attributes to higher salaries, including staff brought in with the Hanley Energy Group and Rebound Technologies acquisitions.
Acquisitions: buying into data-center power
On January 2, 2026, Jabil paid $752M in cash for Hanley Energy Group, described in the 10-Q as "a provider of energy management and critical power solutions serving the data center infrastructure market," bought to expand its "rack-level data center infrastructure capabilities." It also bought UK-based supply-chain services firm Rebound Technologies for $133M in September 2025. All goodwill from both deals sits in Intelligent Infrastructure. The deals are why intangible amortization rose to $23M from $17M, and why goodwill and intangibles on the balance sheet rose to $1,855M from $1,114M at the start of the fiscal year.
Cash flow and the balance sheet
Nine-month operating cash flow was $1,269M. After $278M of net capital spending, adjusted free cash flow (operating cash minus net spending on plants and equipment) came to $991M, up from $813M. That cash, plus $260M of net new borrowing and part of the opening cash balance, paid for the acquisitions ($852M), buybacks ($891M) and dividends ($27M). Cash fell to $1,360M from $1,933M at the start of the year, and total debt rose to $3,378M from $2,885M.
The quality of that cash flow deserves attention. The 10-Q says operating cash flow was driven mainly by "an increase in accounts payable," meaning Jabil paid its suppliers more slowly. Days in accounts payable jumped to 135 from 96 a year ago, which cut Jabil's "sales cycle" (how long cash is tied up between buying parts and getting paid) to 5 days from 24. At the same time, inventory days rose to 84 from 74 and receivable days to 56 from 46, both tied by the 10-Q to shipment and payment timing. Accounts payable reached $11,908M, up from $7,937M in August. Stretched payables can reverse, so part of this year's cash strength may reflect timing rather than a lasting improvement.
Buybacks
Jabil spent $891M on its own shares in the first nine months, including $291M of open-market purchases in Q3 (about 0.9M shares). Diluted shares fell 2.6% year on year, which is why GAAP EPS (+27.6%) grew faster than net income (+23.9%). As of May 31, $109M remained under the $1.0B program approved in July 2025. Because buybacks exceeded earnings, shareholders' equity fell to $1,323M from $1,513M.
Takeaway: Jabil's quarter came down to Intelligent Infrastructure: it produced 48% of revenue and $75M of the $84M increase in core operating income (about 89%), at a margin (6.1%) now above both other segments. The other two divisions grew only 4–5%. The raised guidance depends on data-center and networking customers continuing to spend, and part of the strong cash flow came from paying suppliers more slowly rather than from higher profit.
Outlook
In the June 17 release, management raised its fiscal 2026 guidance to:
FY2026 outlook
Figure
Net revenue
$35 billion
Core operating margin (non-GAAP)
5.8%
Core diluted EPS (non-GAAP)
$12.70
Adjusted free cash flow (non-GAAP)
$1.4+ billion
Fiscal Q4 (June–August 2026) guidance: revenue of $9.2–10.0 billion, GAAP EPS of $3.24–3.64 and core EPS of $3.80–4.20. With $25.3B of revenue and $8.70 of core EPS already booked in the first nine months, the full-year targets imply Q4 revenue of about $9.7B (roughly 10% above Q3's $8.75B) and at least about $410M of free cash flow in Q4. The 10-Q also says net capital spending should rise from 1.0–1.5% of revenue in fiscal 2026 to 1.5–2.0% in fiscal 2027, meaning Jabil expects to spend more on capacity. On tariffs, Jabil has started receiving refunds of tariffs struck down by the Supreme Court in February 2026, but says they have not had, and are not expected to have, a material effect on results.
Our view: if Q4 lands near the guided midpoint, fiscal 2026 will show a higher margin and more revenue, both driven by data-center demand. The things to check in the full-year report are whether Intelligent Infrastructure growth, which slowed from a 41% nine-month rate to 21% this quarter, is strong enough to deliver the roughly $9.7B Q4 the guidance implies, whether Connected Living's profit decline stabilizes, and how much of the payables build reverses. Jabil also relies on a small group of large customers: its five biggest accounted for about 36% of nine-month revenue.
Figures are from Jabil's Form 10-Q for the quarter ended May 31, 2026, and its fiscal Q3 2026 earnings release (Form 8-K, Exhibit 99.1, June 17, 2026). Fiscal 2026 full-year results had not been filed at the time of writing.