Electronics firm Jabil raises annual profit forecast on strong data center demand (updated)

Jabil

Yesterday 16:15

Adani partnership could build scaled AI infrastructure manufacturing in India, CEO says
Quarterly profit per share and sales top Wall Street estimates
AI-related 2026 revenue forecast increased to $13.6 billion
Adds executive comments from the conference call, details, background and graphic; updates shares
By Anshuman  Tripathy and Megavarshini G. Somasundaram

    June 17 (Reuters) - Jabil JBL.N raised its 2026 profit forecast on Wednesday, as the electronic-component maker looks to capitalize on AI-led demand for data centers, sending its shares up by more than 10% in morning trading. 
A surge in data-center infrastructure spending, driven by strong demand for AI computing power, has benefited companies such as Jabil.
"AI infrastructure demand remains extremely strong," said CEO Mike Dastoor, adding the company continued to see better-than-expected performance particularly in its automotive and connected living segment that had earlier been under pressure.

    It expects AI-related revenue to be about $13.6 billion in 2026, $500 million higher than its March forecast of $13.1 billion, Dastoor said on a post-earnings call.
  

    He said Jabil's alliance with 
    Adani Enterprises
     ADEL.NS represents the potential to help establish a scaled AI infrastructure manufacturing platform in India, "a market we believe will become increasingly important for both domestic and global AI infrastructure demand."

    The St. Petersburg, Florida-based company announced a partnership with Adani earlier this week to make next-gen liquid-cooled AI racks along with servers and storage systems for hyperscalers and enterprise data center customers.
  
The company expects fiscal 2026 adjusted profit per share to be $12.70, compared with its prior forecast of $12.25. It also raised its annual revenue forecast to $35 billion from $34 billion earlier. 
Analysts on average expect annual revenue of $34.2 billion and adjusted profit per share of about $12.4, according to data compiled by LSEG.

        The manufacturer, which makes components for Apple AAPL.O, also provides design, production and management solutions to various industrial end markets including technology, automotive, transportation, healthcare, storage and packaging. 
Jabil posted third-quarter adjusted profit per share of $3.16, compared to analysts' expectations of $3.10.
Third-quarter revenue rose 11.8% to $8.75 billion, beating Wall Street estimates of $8.6 billion.

Jabil shares have outperformed the broader market over the past year https://tmsnrt.rs/4xOYFQS
 (Reporting by Megavarshini G. Somasundaram and Anshuman Tripathy in Bengaluru; Editing by Shreya Biswas)
 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))