Shares of Jabil Circuit (JBL) are soaring 9.31% in Tuesday's trading session following a trifecta of positive news from the electronics manufacturing services company. The surge comes on the heels of better-than-expected third-quarter results, an improved fiscal 2025 outlook, and the announcement of a significant investment in AI-driven infrastructure.
Jabil reported adjusted earnings per share of $2.55 for its fiscal third quarter, handily beating analysts' expectations of $2.31. Revenue for the quarter came in at $7.83 billion, surpassing the consensus estimate of $7.06 billion. The company's strong performance was largely attributed to robust demand in its intelligent infrastructure segment, which has been benefiting from accelerating AI-driven demand.
Building on this momentum, Jabil raised its fiscal 2025 guidance. The company now expects revenue of $29 billion, up from its previous forecast of $27.9 billion, and adjusted earnings per share of $9.33, increased from the earlier projection of $8.95. This optimistic outlook reflects Jabil's confidence in its growth trajectory, particularly in AI-related sectors.
In a separate announcement that further bolstered investor enthusiasm, Jabil revealed plans to invest approximately $500 million over the next several years to expand its manufacturing capabilities in the Southeast United States. This investment is specifically aimed at supporting cloud and AI data center infrastructure, positioning Jabil to capitalize on the burgeoning demand for AI technologies. The new facilities are expected to be operational by mid-2026, underscoring the company's long-term commitment to this high-growth area.
CEO Mike Dastoor commented on the results, stating, "We delivered a strong third quarter, outperforming expectations across key end-markets such as cloud, data center infrastructure, and capital equipment. Our intelligent infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand."
The market's enthusiastic response to Jabil's announcements reflects growing investor confidence in the company's strategy and its ability to leverage the increasing demand for AI and cloud technologies. As Jabil continues to position itself at the forefront of these rapidly expanding markets, investors appear optimistic about its future growth prospects.