The technology sector is experiencing a surge in demand for artificial intelligence (AI), significantly impacting companies like Jabil, a contract electronics manufacturer. Over the past year, Jabil's shares have risen by an impressive 80%, reflecting its success in the expanding AI data center market. The company reported a 23% year-over-year increase in revenue, totaling $8.3 billion in its fiscal second quarter results for 2026, released on March 18.
Jabil's intelligent infrastructure business, which constitutes about half of its revenue, played a crucial role in this growth, with a remarkable 52% increase in revenue from this segment compared to the same quarter last year. The company's operating margin in this area also improved by 40 basis points year-over-year, attributed to effective cost management and a favorable product mix. Adjusted earnings rose 39% year-over-year to $2.69 per share, exceeding analysts’ predictions.
Looking ahead, Jabil has raised its full-year guidance for fiscal 2026, now projecting revenue at $34 billion and earnings per share up to $12.25. The company anticipates a 46% increase in AI revenue, expected to reach $13.1 billion. Additionally, Jabil is in talks with a third hyperscaler customer for new data center solutions, which could enhance its revenue further in fiscal 2027.