Jabil Inc. reported robust preliminary, unaudited financial results for its third quarter of fiscal year 2025, significantly outperforming expectations across revenue, core operating income, and core earnings per share. The company delivered $7.828 billion in net revenue, an impressive 16% increase year-over-year and $800 million above the midpoint of its guidance. Core diluted earnings per share reached $2.55, up 35% compared to Q3 of last year, with core operating margins at 5.4%.
The Intelligent Infrastructure segment was the primary growth engine, with revenue up approximately 51% year-over-year, driven by accelerating AI-driven demand in cloud and data center infrastructure, including power, cooling, and server rack solutions. Jabil now projects its AI-related revenue to reach approximately $8.5 billion this fiscal year, representing a 50%-plus increase year-over-year. The company also generated strong cash flow, with $326 million from operations in Q3, bringing year-to-date adjusted free cash flow to $813 million, on track to exceed $1.2 billion for the year.
In conjunction with its earnings, Jabil announced a planned multi-year investment of approximately $500 million to expand its footprint in the Southeast United States for cloud and AI data center infrastructure customers. This significant commitment will enable new large-scale manufacturing capabilities, with a new site expected to be operational by mid-calendar year 2026. Jabil also raised its fiscal year 2025 outlook, now anticipating approximately $29 billion in net revenue and core diluted earnings per share of $9.33. Jabil's stock rose after the announcement.
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