Jabil Inc. JBL is set to release third-quarter fiscal 2025 results on June 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 7.18%. It pulled off a trailing four-quarter earnings surprise of 4.86%, on average.

The leading global supplier of electronic manufacturing services is likely to witness a revenue expansion year over year in the third quarter of fiscal 2025. Healthy demand in cloud and data center infrastructure, capital equipment and digital commerce market will likely drive the top line. A strong focus on improving free cash flow is a positive.

Factors at Play for JBL

In the to-be-reported quarter, Jabil formed a strategic collaboration with AVL, an industry-leading engineering services provider. Jabil aims to combine its robust expertise in industrialization, manufacturing and supply chain solutions with AVL’s expertise in product design, software, simulation, and device testing. The partnership will focus on developing next-generation vehicle technology such as powertrain and charging technology, sensor-based driver assistance systems, and various other on-board compute and control products. Such an initiative is expected to have boosted Jabil’s commercial prospects in the automotive and transportation industry.

During the quarter, JBL expanded its photonics product portfolio with the launch of new transceivers. With their capability to transfer data at speeds of up to 1.6 Terabits per second, these cutting-edge solutions are tailored to support the rising demands of artificial intelligence/machine learning workloads, high-performance computing, cloud infrastructure, and data center interconnects.

In the quarter under review, Jabil’s division, Badger Technologies, introduced the Digital Teammate solution platform, powered by Badger’s multipurpose, autonomous robots. The platform is designed to enhance employee productivity and inventory management capabilities utilizing AI, mobile data and analytics, and computer vision. Such innovation initiatives are expected to have boosted Jabil’s top line.

The Zacks Consensus Estimate for the Regulated Industries segment is pegged at $2.98 billion. Revenues from the Intelligent Infrastructure segment are pegged at $2.79 billion, while net sales from Connected Living and Digital Commerce are projected to reach $1.19 billion.

For the May quarter, the Zacks Consensus Estimate for revenues is pegged at $6.98 billion, which indicates an increase from the year-ago quarter’s tally of $6.77 billion. The consensus estimate for earnings is pegged at $2.28, suggesting a increase from $1.89 reported in the prior-year quarter.