Earnings season in mid-June delivered a relatively light day of reports, but with outsized moves. Jabil (JBL) was the standout with a sharp rally on a beat-and-raise quarter powered by AI infrastructure demand. CarMax (KMX) reminded investors that headline beats can hide troubling underlying trends. On the IPO side, SpaceX (SPCX) continued its post-listing rally with growing volatility, and a new SPAC from Cantor Fitzgerald began trading.

Jabil: AI Demand Drives Beat-and-Raise

Jabil reported fiscal Q3 2026 results with revenue of $8.8 billion — above the consensus estimate of ~$8.55 billion. Core non-GAAP EPS came in at $3.16, beating expectations of ~$3.08. The stock surged as much as 14% in early trading, touching $428 before paring gains.

The main driver was strong AI infrastructure demand, mirroring trends seen across other electronics manufacturing peers. The company raised its full-year revenue guidance to $35 billion and its core EPS outlook to $12.70. CEO Mike Dastoor highlighted "extremely strong AI demand" alongside improving portfolio diversification.

CarMax: Beat the Numbers, Miss the Quality

CarMax reported Q1 fiscal 2027 EPS of $1.31 — well above the $0.94 consensus — and revenue of $8.0 billion, up 6.2% year-over-year. But comparable-store used vehicle sales declined 0.8%, and retail gross profit per used vehicle fell $230 to $2,177.

The market reacted sharply: shares fell 8.5% to around $47.70. Carvana also dropped 8% on similar used-car margin concerns. The divergence between headline beats and underlying weakness highlights the importance of earnings quality over surface-level numbers.

SpaceX: Record Rally, Then Profit-Taking

SpaceX completed its fourth trading day on Wednesday after the largest IPO in Wall Street history. The stock traded around $206, after hitting an intraday high of $225.64 on Tuesday — a roughly 52% gain from the $135 IPO price.

The elevated volatility reflects limited float and mostly long-term holders, combined with strong retail demand. The market is closely watching whether the rally can sustain as supply increases or whether a more significant profit-taking phase begins.

New SPAC Debut and IPO Pipeline

Cantor Equity Partners VII (CAES) began trading on the Nasdaq after pricing a $250 million IPO at $10 per share. It is the 16th blank-check company from Cantor Fitzgerald. Another SPAC, Albatross Acquisition, filed for a $100 million IPO on Wednesday.

Bottom Line

Wednesday's key message was clear: AI infrastructure demand continues to drive strong results for suppliers like Jabil, while consumer-facing markets — particularly used cars — show signs of cooling. In the IPO market, SpaceX remains the week's dominant story, but the extreme volatility warrants caution. Earnings season continues.