Jabil Inc. Q3 profit climb

What happened: Jabil Inc. (JBL) and MSC Industrial Direct Co. (MSM) reported strong Q3 earnings, with Jabil's adjusted earnings climbing to $3.16 per share, up from $2.59 last year, driven by robust AI infrastructure demand. MSC's earnings also increased to $1.44 per share, up from $1.02. Jabil's CEO noted "extremely strong" AI infrastructure demand, and the company raised its full-year guidance. Analysts upgraded Jabil to 'buy' and raised estimates, citing a multiyear growth cycle.

Market impact: The earnings beat and positive outlook pushed Jabil's stock above its 50-day moving average, benefiting contract manufacturers and AI infrastructure players like AMD and Nvidia. The results also buoyed the broader manufacturing sector, with MSC's earnings indicating strength in industrial distribution.

What to watch next: Jabil's fiscal Q4 2026 earnings, expected on May 25, will provide further insight into AI demand trends. Additionally, investors should monitor AMD's and Nvidia's earnings (Q1 2023, April 25 and May 24 respectively) for potential impacts on Jabil's business. Lastly, keep an eye on Jabil's stock price around the $100 level, a key resistance point since late 2022.