A global engineering, manufacturing, and supply-chain solutions provider, Jabil builds everything from cloud servers and networking gear to medical devices and warehouse robots for major tech, auto, healthcare, and renewables brands. It began in 1966 when founders James Golden and Bill Morean assembled circuit boards on a kitchen table in suburban Detroit, and they named the company by splicing their first names together — Ja from James, Bil from Bill. Today its plants span dozens of countries, and its designers help customers shape products from first idea to factory floor.
Intelligent Infrastructure growth decelerated to 21% in Q3, its slowest rate in five quarters, while gross margin reached 9.5%.
The Intelligent Infrastructure 's growth rate halved from the prior quarter. rose 11.8% to $8.75 billion and widened 0.8 points to 9.5%, driven by a favorable product mix within that same segment. The growth engine is still running, but the pace has shifted down a gear.
Key takeaways
rose 11.8% to $8.75 billion, driven by a 21% increase in the Intelligent Infrastructure from cloud, data center, and networking customers.
widened 0.8 points to 9.5%, which management attributed to a favorable product mix in the Intelligent Infrastructure .
rose 10.4% to $445 million, helped by the increase and a $5 million decline in restructuring charges to $7 million as the 2025 Restructuring Plan wound down.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 12% to $8.75B, driven by 21% growth in Intelligent Infrastructure, with gross margin expanding to 9.5%.
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Net increased 11.8% to $8.75B, led by a 21% surge in the Intelligent Infrastructure from cloud, data center, and networking customers.
improved to 9.5% from 8.7% a year ago, primarily due to favorable product mix in the Intelligent Infrastructure .
SG&A expenses rose $66 million to $340 million on higher salary-related costs and the impact of the Hanley and Rebound Technologies acquisitions.
for the nine-month period reached $991 million, up from $813 million a year ago, supported by higher and increased proceeds from sales of property, plant, and equipment.
What changed
The 21% growth in Intelligent Infrastructure marks a clear deceleration from the 52%–54% rates of the prior two quarters, settling a key watch item on whether that pace was durable.
reached 9.5%, the highest quarterly level since Q3 FY2024, resolving the question of whether margin could sustain or improve as the restructuring plan wound down.
was essentially flat at $1.33 billion, down just 1.6% sequentially, suggesting the aggressive erosion of the equity base from share repurchases has paused for now.
The $66 million increase in SG&A expenses confirms the step-up in the cost run rate flagged last quarter, driven by salary costs and recent acquisitions rather than a one-time event.
What to watch
Whether the 21% growth rate in Intelligent Infrastructure represents a new normal or decelerates further as cloud and data center demand matures.
Whether can sustain at or above 9.5% now that it has reached this level, or if the favorable product mix within Intelligent Infrastructure is tied to a specific project cycle.
The pace and scale of share repurchases, given that has stabilized at $1.33 billion and the company has not signaled a change in its capital allocation strategy.
Whether the higher SG&A run rate of $340 million persists, and if the company can it against continued growth to improve .
expenses rose $66M to $340M, largely from higher salary-related costs and the impact of the Hanley and Rebound Technologies acquisitions.
fell to $7M from $16M as the 2025 Restructuring Plan was substantially complete, partially offset by new targeted cost-optimization actions.
reached $991M for the nine-month period, up from $813M, supported by higher and increased PP&E sale proceeds.
The company expects FY2026 net of 1.0%–1.5% of net and plans to continue quarterly dividends similar to past declarations.
Quantitative and Qualitative Disclosures About Market Risk
As of the date of this report, there have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. 34 Table of Contents
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As of the date of this report, there have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2025.
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For information regarding risk factors that could affect our business, results of operations, financial condition or future results included in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. For further information on…
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For information regarding risk factors that could affect our business, results of operations, financial condition or future results included in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended August 31, 2025. For further information on our forward-looking statements see Part I of this Quarterly Report on Form 10-Q.