March 18 (Reuters) – Electronic component maker Jabil raised its full-year profit and revenue forecasts on Wednesday, betting on strong demand for infrastructure services from AI data centers.
Shares of the St. Petersburg, Florida-based company were up 1.1% in premarket trading, after it surpassed Wall Street expectations for second-quarter results.
A surge in spending for data-center infrastructure, driven by robust demand for computing power to support AI technologies, has benefited companies such as Jabil.
Jabil CEO Mike Dastoor said results were fueled by “continued momentum in intelligent infrastructure, where demand remains robust across cloud and data center infrastructure, networking and communications, and capital equipment”.
He added regulated industries also improved, as automotive and renewables outperformed expectations.
The manufacturer, which makes components for Apple, also provides design, production and management solutions to various industrial sectors including technology, automotive, transportation, healthcare, storage and packaging.
The company now expects fiscal 2026 revenue of $34 billion, compared with its earlier forecast of $32.4 billion. It also raised its forecast for adjusted earnings per share to $12.25 from $11.55 earlier.
Analysts on average expect annual revenue of $32.71 billion and adjusted profit per share of $11.67, according to data compiled by LSEG.
On an adjusted basis, Jabil posted second-quarter profit per share of $2.69, above analysts’ expectations of $2.51.
Second-quarter revenue rose 23% year-on-year to $8.28 billion, beating Wall Street estimates of $7.74 billion.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Diti Pujara)
Comments