By Mackenzie Tatananni

Jabil stock roared higher on Wednesday after the unconventional artificial-intelligence play paired strong third-quarter numbers with a fiscal-year guidance hike.

Jabil posted a quarterly profit of $275 million, or $2.59 a share, compared with $222 million, or $2.03 a share, in the year-ago period. Adjusted earnings came to $3.16 a share, ahead of analysts' calls for $3.10. Net revenue climbed 12% to $8.8 billion, beating the $8.6 billion Wall Street had projected.

Shares advanced 4.7% to $393.20 on Wednesday, making Jabil one of the top performers in the S&P 500. The benchmark index traded flat.

The company also raised its full-year earnings outlook to $12.70 a share from $12.25, while bumping its revenue outlook to roughly $35 billion from $34 billion. Both figures are comfortably above analysts' calls for $12.35 and $34.2 billion, respectively.

CEO Mike Dastoor cited "better-than-expected performance" in areas of the portfolio that had previously come under pressure, notably its automotive segment and connected living business, which centers on components found in smart home appliances.

Jabil has become a key "picks and shovels" play in the broader AI sector -- a far cry from its roots in assembling and repairing printed circuit boards. While the company doesn't make its own chips, it manufactures the physical rack-scale servers, networking gear, and cooling solutions that factor into data centers.

Consequently, the growth of AI has been a boon to Jabil's business as well as its stock. Counting Wednesday's gains, shares have surged more than 70% in 2026 against a 9.8% gain for the broader market.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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June 17, 2026 11:12 ET (15:12 GMT)

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