Arrowstreet Capital Limited Partnership decreased its holdings in shares of Jabil, Inc. (NYSE:JBL – Free Report) by 46.2% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 848,163 shares of the technology company’s stock after selling 728,145 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.80% of Jabil worth $225,298,000 as of its most recent SEC filing.
Several other institutional investors have also recently added to or reduced their stakes in JBL. Greenline Wealth Management LLC acquired a new stake in Jabil in the 4th quarter worth about $28,000. Veracity Capital LLC raised its position in shares of Jabil by 4,144.3% in the 4th quarter. Veracity Capital LLC now owns 3,735 shares of the technology company’s stock worth $31,000 after buying an additional 3,647 shares during the period. Virtus Advisers LLC acquired a new position in Jabil in the fourth quarter valued at $32,000. DV Equities LLC purchased a new stake in shares of Jabil during the 4th quarter worth about $34,000. Finally, Wilkerson Advisory Group LLC acquired a new stake in Jabil during the 4th quarter worth approximately $34,000. 93.39% of the stock is currently owned by institutional investors and hedge funds.
Jabil Stock Down 3.0% Shares of NYSE:JBL opened at $312.28 on Friday. The firm has a market cap of $32.72 billion, a PE ratio of 38.99, a price-to-earnings-growth ratio of 0.96 and a beta of 1.28. The company has a fifty day simple moving average of $352.15 and a 200 day simple moving average of $302.26. The company has a current ratio of 0.98, a quick ratio of 0.66 and a debt-to-equity ratio of 2.17. Jabil, Inc. has a 12-month low of $189.60 and a 12-month high of $428.93.
Jabil (NYSE:JBL – Get Free Report) last announced its quarterly earnings data on Wednesday, June 17th. The technology company reported $3.16 earnings per share for the quarter, topping the consensus estimate of $3.10 by $0.06. The company had revenue of $8.75 billion during the quarter, compared to analyst estimates of $8.61 billion. Jabil had a net margin of 2.57% and a return on equity of 83.93%. The firm’s revenue for the quarter was up 11.8% compared to the same quarter last year. During the same period last year, the business earned $2.55 EPS. Jabil has set its FY 2026 guidance at 12.700-12.700 EPS and its Q4 2026 guidance at 3.800-4.200 EPS. On average, equities research analysts anticipate that Jabil, Inc. will post 11.71 EPS for the current fiscal year.
Jabil Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Friday, August 14th will be paid a dividend of $0.08 per share. The ex-dividend date is Friday, August 14th. This represents a $0.32 annualized dividend and a yield of 0.1%. Jabil’s dividend payout ratio is presently 4.00%.
Insider Buying and Selling In related news, SVP Gary K. Schick sold 1,000 shares of the firm’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $340.00, for a total transaction of $340,000.00. Following the transaction, the senior vice president directly owned 39,843 shares in the company, valued at $13,546,620. This trade represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Matthew Crowley sold 94 shares of Jabil stock in a transaction on Monday, July 6th. The stock was sold at an average price of $345.00, for a total transaction of $32,430.00. Following the completion of the transaction, the executive vice president directly owned 57,536 shares of the company’s stock, valued at approximately $19,849,920. This represents a 0.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.35% of the company’s stock.
Analyst Upgrades and Downgrades Several equities research analysts have issued reports on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Jabil from $395.00 to $450.00 and gave the stock an “overweight” rating in a research note on Thursday, June 18th. UBS Group upped their target price on Jabil from $380.00 to $430.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Barclays increased their target price on Jabil from $304.00 to $426.00 and gave the company an “overweight” rating in a research note on Thursday, June 18th. Wall Street Zen lowered Jabil from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 11th. Finally, Zacks Research upgraded Jabil from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 2nd. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $453.67.
Read Our Latest Research Report on JBL
Jabil Company Profile (Free Report)
Jabil Inc (NYSE: JBL) is a global manufacturing solutions provider specializing in electronic manufacturing services (EMS) and diversified products across a wide range of industries. The company partners with original equipment manufacturers to deliver design engineering, supply chain management, precision manufacturing, and aftermarket services. Jabil’s expertise spans sectors such as healthcare, automotive, clean technology, telecommunications, consumer electronics, and packaging, enabling it to support both high-volume production and complex, mission-critical applications.
Founded in 1966 by William E.
Featured Stories Five stocks we like better than Jabil AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding JBL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Jabil, Inc. (NYSE:JBL – Free Report).
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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Jabil (JBL - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Jabil is a member of the Computer and Technology sector. This group includes 612 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Jabil is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for JBL's full-year earnings has moved 3.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, JBL has returned 41.2% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 10.8% on a year-to-date basis. This means that Jabil is outperforming the sector as a whole this year.
Another stock in the Computer and Technology sector, Arrow Electronics (ARW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 95.2%.
The consensus estimate for Arrow Electronics' current year EPS has increased 40.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Jabil belongs to the Electronics - Manufacturing Services industry, a group that includes 4 individual stocks and currently sits at #22 in the Zacks Industry Rank. On average, stocks in this group have gained 31.6% this year, meaning that JBL is performing better in terms of year-to-date returns.
In contrast, Arrow Electronics falls under the Electronics - Parts Distribution industry. Currently, this industry has 4 stocks and is ranked #60. Since the beginning of the year, the industry has moved +60.7%.
Investors with an interest in Computer and Technology stocks should continue to track Jabil and Arrow Electronics. These stocks will be looking to continue their solid performance.
Celestica (NYSE:CLS | CLS Price Prediction) is one of the most direct ways for a long-horizon portfolio to gain exposure to the AI infrastructure buildout right now. The company designs and manufactures electronics and hardware for major technology customers, earning revenue by building products such as servers, networking equipment, and data-center systems.
The company is compounding revenue north of 50% with expanding margins, management has raised full-year guidance twice in six months, and the stock trades at a forward multiple below its growth rate. This is a pick-and-shovel play with visible 2027 program wins already booked.
Celestica’s AI Growth Is Accelerating Q1 FY26 revenue hit $4.05 billion, up 52.8% year over year, with adjusted EPS of $2.16 beating the $2.08 consensus. That was the fifth straight EPS beat. Adjusted operating margin printed 8.0%, a company record, and the Connectivity & Cloud Solutions segment grew 76% year over year to $3.24 billion. Management raised FY26 guidance to $19.0 billion in revenue and $10.15 in adjusted EPS, up from $17.0 billion and $8.75 just one quarter earlier.
The Valuation Has Not Caught Up With the Growth At $335.50, CLS trades at a forward P/E of 30 against quarterly earnings growth of 147.3% year over year. The Street consensus target sits at $448, with 20 of 21 analysts rating it Buy or Strong Buy and zero Sells. The stock is still trading roughly 30% below its 52-week high of $474.02, giving new buyers a discount to a name that returned 113.82% over the past year.
Why Celestica Is Crushing Its EMS Peers Flex (NASDAQ:FLEX) and Jabil (NYSE:JBL) are the obvious EMS (Electronics Manufacturing Services) alternatives, and neither is keeping up. Flex grew FY26 revenue just 8.14% to $27.9 billion with an adjusted operating margin of 6.5% in its most recent quarter. Jabil’s Q3 FY26 revenue rose 11.8% year over year against a full-year core operating margin guide of 5.8%.
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Celestica is growing more than four times faster than Flex and posting a stronger margin profile roughly 200 basis points above Jabil’s.
Customer Concentration Is Fueling the AI Opportunity Customer concentration is one of the standard talking points among bears. Three customers were 36%, 15%, and 12% of Q4 FY25 revenue, meaning they cumulatively accounted for 63% of revenue.
Those customers are hyperscalers with published capex trajectories, and CLS just won a Co-packaged Optics Ethernet switch program using 1.6 Terabit silicon that begins ramping in 2027, alongside expanded U.S. manufacturing capacity for Google TPU systems. While customer concentration introduces risk, it also provides a tailwind when the customer list includes the largest AI spenders on earth.
Celestica Deserves a Spot at the Top of Your AI Watchlist Long-term investors seeking direct AI infrastructure exposure at a reasonable multiple might consider putting Celestica at the top of their research list today. Celestica is scheduled to release Q2 earnings after the market closes on July 27.
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California Public Employees Retirement System decreased its position in shares of Jabil, Inc. (NYSE:JBL – Free Report) by 2.5% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 213,948 shares of the technology company’s stock after selling 5,575 shares during the quarter. California Public Employees Retirement System owned approximately 0.20% of Jabil worth $56,831,000 at the end of the most recent quarter.
Several other hedge funds also recently bought and sold shares of JBL. Todd Asset Management LLC lifted its holdings in Jabil by 1.9% in the 4th quarter. Todd Asset Management LLC now owns 336,356 shares of the technology company’s stock worth $76,696,000 after purchasing an additional 6,179 shares in the last quarter. Jackson Creek Investment Advisors LLC grew its holdings in Jabil by 386.2% during the 4th quarter. Jackson Creek Investment Advisors LLC now owns 11,290 shares of the technology company’s stock valued at $2,574,000 after buying an additional 8,968 shares in the last quarter. Jefferies Financial Group Inc. bought a new stake in shares of Jabil during the fourth quarter valued at approximately $7,061,000. Allstate Corp raised its position in shares of Jabil by 98.0% during the fourth quarter. Allstate Corp now owns 7,959 shares of the technology company’s stock valued at $1,815,000 after buying an additional 3,939 shares during the last quarter. Finally, National Pension Service lifted its holdings in shares of Jabil by 582.6% in the fourth quarter. National Pension Service now owns 224,903 shares of the technology company’s stock worth $51,282,000 after buying an additional 191,956 shares in the last quarter. Institutional investors own 93.39% of the company’s stock.
Jabil Trading Down 0.1% Shares of JBL stock opened at $300.81 on Monday. The company has a market cap of $31.52 billion, a PE ratio of 37.55, a price-to-earnings-growth ratio of 0.90 and a beta of 1.28. Jabil, Inc. has a 1 year low of $189.60 and a 1 year high of $428.93. The stock’s 50 day simple moving average is $355.90 and its two-hundred day simple moving average is $299.81. The company has a debt-to-equity ratio of 2.17, a current ratio of 0.98 and a quick ratio of 0.66.
Jabil (NYSE:JBL – Get Free Report) last announced its earnings results on Wednesday, June 17th. The technology company reported $3.16 EPS for the quarter, topping analysts’ consensus estimates of $3.10 by $0.06. Jabil had a return on equity of 83.93% and a net margin of 2.57%.The firm had revenue of $8.75 billion during the quarter, compared to analysts’ expectations of $8.61 billion. During the same quarter in the previous year, the business earned $2.55 EPS. The company’s quarterly revenue was up 11.8% on a year-over-year basis. Jabil has set its FY 2026 guidance at 12.700-12.700 EPS and its Q4 2026 guidance at 3.800-4.200 EPS. Research analysts predict that Jabil, Inc. will post 11.71 earnings per share for the current year.
Jabil Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Friday, August 14th will be given a dividend of $0.08 per share. The ex-dividend date is Friday, August 14th. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. Jabil’s payout ratio is 4.00%.
Wall Street Analysts Forecast Growth Several research firms recently weighed in on JBL. Argus set a $475.00 target price on shares of Jabil in a research note on Thursday, June 18th. Raymond James Financial increased their price objective on shares of Jabil from $425.00 to $450.00 and gave the company a “strong-buy” rating in a report on Thursday, June 18th. Weiss Ratings upgraded Jabil from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 1st. Wall Street Zen downgraded Jabil from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 11th. Finally, The Goldman Sachs Group lifted their price objective on Jabil from $384.00 to $482.00 and gave the stock a “buy” rating in a research note on Thursday, June 18th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $453.67.
View Our Latest Research Report on Jabil
Insiders Place Their Bets In related news, SVP Gary K. Schick sold 1,000 shares of Jabil stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $340.00, for a total transaction of $340,000.00. Following the completion of the transaction, the senior vice president directly owned 39,843 shares of the company’s stock, valued at approximately $13,546,620. The trade was a 2.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Matthew Crowley sold 94 shares of the company’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $345.00, for a total transaction of $32,430.00. Following the transaction, the executive vice president owned 57,536 shares in the company, valued at $19,849,920. The trade was a 0.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.35% of the company’s stock.
Jabil Profile (Free Report)
Jabil Inc (NYSE: JBL) is a global manufacturing solutions provider specializing in electronic manufacturing services (EMS) and diversified products across a wide range of industries. The company partners with original equipment manufacturers to deliver design engineering, supply chain management, precision manufacturing, and aftermarket services. Jabil’s expertise spans sectors such as healthcare, automotive, clean technology, telecommunications, consumer electronics, and packaging, enabling it to support both high-volume production and complex, mission-critical applications.
Founded in 1966 by William E.
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A month has gone by since the last earnings report for Jabil (JBL - Free Report) . Shares have lost about 17.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Jabil due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
JBL Q3 Earnings Beat Estimates on AI Infrastructure StrengthJabil third-quarter fiscal 2026 results surpassed expectations, driven by robust AI infrastructure demand and broad-based growth across its portfolio. Core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%.
Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year.
Earnings and Revenue Top ExpectationsJabil reported third-quarter fiscal 2026 net revenues of $8.75 billion, up from $7.83 billion in the year-ago quarter. Revenues benefited from strong demand across multiple end markets, particularly AI-related cloud and data center infrastructure programs.
Core operating income increased to $504 million from $420 million a year ago. Core diluted earnings per share rose to $3.16 from $2.55, reflecting solid operating execution and margin expansion. On a GAAP basis, diluted earnings per share improved to $2.59 from $2.03.
Intelligent Infrastructure Leads GrowthThe Intelligent Infrastructure segment remained Jabil’s largest business, contributing 48% of total revenue during the quarter. Segment revenue increased 21% year over year to approximately $4.2 billion, supported by strong demand in capital equipment, cloud and data center infrastructure, as well as networking and communications.
Management noted that networking and communications revenue increased more than 50%, aided by a strong networking ramp in India. Segment core operating margin expanded 80 basis points year over year to 6.1%, highlighting favorable mix and execution.
Other Segments Deliver Steady ResultsRegulated Industries generated revenues of roughly $3.2 billion, representing 36% of total company sales. Revenues increased 4% year over year, driven primarily by stronger-than-expected automotive and transportation demand. Core operating margin improved 10 basis points to 5.6%.
Connected Living and Digital Commerce accounted for 16% of revenue. Sales rose 5% year over year to approximately $1.4 billion as consumer-related demand performed better than management’s cautious expectations. The segment delivered a core operating margin of 4.9%.
Margins and Cash Flow ImproveJabil’s profitability strengthened during the quarter. Core operating margin expanded to 5.8% from 5.4% in the prior-year period, supported by a favorable business mix and disciplined execution across operations. GAAP operating income increased to $445 million from $403 million a year earlier.
Cash generation also remained healthy. Net cash provided by operating activities totaled $535 million, while adjusted free cash flow reached $359 million after capital expenditures of $176 million. During the quarter, the company repurchased approximately $291 million of shares under its existing authorization.
AI Momentum Drives Outlook HigherManagement highlighted continued strength in AI infrastructure programs as a major growth catalyst. Jabil now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, up from its prior forecast of $13.1 billion and significantly above the $9 billion generated in fiscal 2025. The company also secured a third hyperscale customer during the quarter, further strengthening its long-term growth prospects.
According to management, growth is being supported by capabilities across compute, storage, networking, optics, power, cooling and rack-level integration, while maintaining an asset-light operating model.
Fiscal 2026 Guidance RaisedEncouraged by strong third-quarter execution and healthy demand trends, Jabil raised its fiscal 2026 outlook. The company now expects fiscal 2026 revenues of approximately $35 billion, core operating margin of about 5.8%, core diluted earnings per share of roughly $12.70 and adjusted free cash flow exceeding $1.4 billion.
For the fourth quarter of fiscal 2026, management projects revenues between $9.2 billion and $10 billion and core diluted earnings per share of $3.80-$4.20. The outlook reflects continued momentum in Intelligent Infrastructure, particularly AI-related programs, as well as improving trends in automotive and other end markets.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.34% due to these changes.
VGM ScoresAt this time, Jabil has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Jabil has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Flex is advancing a Cloud and Power Infrastructure spin-off while expanding AI-driven manufacturing.Jabil raised its fiscal 2026 outlook as AI infrastructure demand and diversified end markets fueled growth.Jabil is the stronger pick based on analyst estimate revisions. Flex Ltd. (FLEX - Free Report) and Jabil Inc. (JBL - Free Report) are among the leading electronics manufacturing services (EMS) providers, benefiting from rising investments in AI infrastructure, cloud computing and data center expansion. Both companies delivered strong financial performances in their latest reported quarters, supported by robust customer demand, disciplined execution and expanding opportunities across high-growth end markets.
Each company is pursuing a distinct growth strategy, with Flex emphasizing its planned Cloud and Power Infrastructure spin-off and Jabil continuing to leverage its diversified business model and accelerating AI-related momentum.
Let’s analyze their fundamentals, growth opportunities, market challenges and valuation to assess which one presents a stronger investment opportunity.
The Case for FLEXFlex is gaining from strong momentum in its Cloud and Power Infrastructure (CPI) business, supported by substantial new business wins with hyperscaler and data center customers, including Google. These engagements extend beyond individual product manufacturing to include power infrastructure, thermal systems and complex hardware manufacturing deployed across the company’s global footprint. The company has already begun capital deployment for these projects and expects CPI revenue to grow 65% to 75% in fiscal 2027, followed by growth of more than 80% in fiscal 2028. Management also stated that demand is supported by multiple hyperscalers, neoclouds, colocation providers and utilities, providing a diversified customer base and multi-year growth visibility.
The company's transformation and portfolio optimization bode well, highlighted by the planned spin-off of its Cloud and Power Infrastructure business into a separate publicly traded company. Management believes the business has achieved the scale, growth profile and strategic importance to operate independently, while enabling both companies to sharpen their focus and align capital allocation with their respective priorities. Following the spin, Flex intends to concentrate on advanced manufacturing opportunities across diversified end markets, with increased investments in higher-growth industries such as healthcare, robotics, warehouse automation and networking, while continuing to optimize its portfolio for stronger cash flow generation and shareholder returns.
Apart from these, the company is also gaining from disciplined execution and operational efficiency, which contributed to strong financial performance during fiscal 2026. Fourth-quarter revenue increased 17% year over year, while adjusted gross margin reached a record 9.9% and adjusted operating margin improved to a company record of 6.7%. In fiscal 2026, revenue rose 8%, supported by continued growth in cloud, power and industrial businesses. The company also delivered record adjusted gross and operating margins, driven by a favorable product mix and ongoing operational improvements.
For the first quarter of fiscal 2027, the company expects net sales in the range of $7.35 billion to $7.65 billion, representing growth of approximately 14% at the midpoint of the guidance.For fiscal 2027, the company expects net sales to range between $32.3 billion and $33.8 billion, representing growth of approximately 18% at the midpoint of the guidance. Adjusted operating margin is projected to be between 7% and 7.1%, while adjusted EPS is expected to range from $4.21 to $4.51, implying growth of 32% at the midpoint.
Image Source: Zacks Investment Research
However, Flex is facing continued softness in certain end markets, particularly within its lifestyle business. Full-year ITS revenue declined 2% year over year due to persistent weakness in lifestyle, although this was partly offset by growth in communications. Management also expects fiscal 2027 ITS revenue to range from flat to low single-digit growth, as continued softness and the company’s deliberate deemphasis of lower-value lifestyle markets are expected to offset strength in communications.
The company is experiencing margin pressure within its Cloud and Power Infrastructure business due to ongoing investments and program ramp costs. During fiscal 2026, CPI adjusted operating margin declined 100 basis points year over year as incremental infrastructure investments in critical power and cloud ramp costs weighed on profitability. Management indicated that these investments temporarily reduced margins, although the company expects to recover these impacts as capacity utilization improves in the coming years.
The Case for JBLJabil is gaining from sustained strength in AI infrastructure demand, which continues to support growth across its Intelligent Infrastructure business. The company increased its fiscal 2026 AI-related revenue outlook to approximately $13.6 billion, up $500 million from its March forecast and significantly higher than fiscal 2025 levels. This growth is being driven by strong customer demand, disciplined execution and capabilities spanning compute, storage, networking, optics, power, cooling and rack-level integration. The company also secured its third hyperscale customer during the quarter, creating additional opportunities to expand customer relationships across the data center ecosystem.
The company is also benefiting from improving momentum across multiple end markets, supported by stronger-than-expected demand in automotive, renewables and Connected Living. The company raised its fiscal 2026 automotive revenue outlook to approximately $4.4 billion as stronger export demand from China, industry consolidation and growth in powertrain-agnostic platforms exceeded previous expectations. Renewables also continued to improve, benefiting from safe harbor projects, AI and data center-related power demand, and a shift toward commercial projects. Meanwhile, Connected Living and Digital Commerce outperformed the company's cautious assumptions, prompting higher revenue expectations for both businesses.
Jabil's diversified business model, combined with disciplined execution, enabled the company to deliver strong financial performance during the third quarter. The company delivered revenue, margins, earnings per share and free cash flow above expectations, while Intelligent Infrastructure continued to post broad-based growth across capital equipment, cloud and data center infrastructure, and networking and communications. Management also raised its fiscal 2026 outlook to approximately $35 billion in revenue, core operating margin of about 5.8%, core EPS of approximately $12.70 and adjusted free cash flow exceeding $1.4 billion.
Moreover, the company is gaining from ongoing capacity expansion and strategic initiatives that support long-term AI infrastructure demand. The company expects AI-related revenue growth in fiscal 2027 to be similar in percentage terms to fiscal 2026, despite a much larger revenue base, supported by new capacity coming online in North Carolina, Memphis, India and other locations. It also announced an AI infrastructure initiative with Adani Enterprises to establish a large-scale manufacturing platform in India focused on AI racks, servers, storage systems, networking equipment and supporting infrastructure. While management views this as a longer-term opportunity, it believes the initiative strengthens its position in a market expected to become increasingly important for AI infrastructure demand.
However, JBL continues to face some near-term challenges despite the positive outlook. Management remains cautious about demand volatility in the automotive market, even after stronger-than-expected performance during the quarter. The company also noted that component availability, portfolio mix, customer ramp timing and supply chain constraints, including shortages in certain memory and high-density components, remain a concern.
FLEX vs. JBL Share Price PerformanceOver the past six months, FLEX shares have gained 73%, while Jabil has soared 19.9%.
Image Source: Zacks Investment Research
Valuation for FLEX & JBLIn terms of Price/Book, FLEX shares are trading at 8.63X, lower than JBL’s 24.25X.
Image Source: Zacks Investment Research
How Do Estimates Compare for FLEX & JBL?Analysts have not revised their earnings estimates for FLEX’s bottom line for the current year.
Image Source: Zacks Investment Research
For JBL, there have been upward revisions for the current year.
Image Source: Zacks Investment Research
FLEX or JBL: Which Stock to Bet On?While JBL sports a Zacks Rank #1 (Strong Buy) at present, FLEX has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank, JBL seems to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AI-enabled facility leverages automation, connected systems, and real-time insights to strengthen supply chain resilience
PENANG, Malaysia--(BUSINESS WIRE)--Jabil Inc. (NYSE: JBL), a global leader in engineering, supply chain, and manufacturing solutions, has opened its next-generation logistics hub in Penang.
Jabil’s new Intelligent Logistics Hub (or the Hub) spans around 417,000 square feet and is located in the Valdor Industrial Park in Sungai Jawi, Penang. The digitalised facility is set to boost the company’s back-end operations and support customers’ rapidly growing product complexity and capacity demands using AI-enabled capabilities to streamline inventory management, enhance traceability and tracking, deploy autonomous robots, and more.
“Supply chain volatility, rising logistics and operating costs, and the need for greater visibility into inventory are a few challenges faced in today’s advanced manufacturing and electronics supply chains. Coupled with the growth we see in the region, the new facility is a timely investment to enhance our automation capability and help Jabil grow to meet our customers’ future needs,” said HH Yeo, Jabil’s Senior Vice President of Operations.
"The Jabil Intelligent Logistics Hub demonstrates how Malaysian innovation and engineering capabilities can deliver world-class industrial infrastructure that meets the evolving needs of global supply chains. This project reflects our commitment to enabling smarter, more resilient, and future-ready industrial ecosystems that support Malaysia's economic growth and competitiveness," said Dato' Hj Abd Rahim bin Hj Jaafar, Executive Chairman of PTT Synergy Group Berhad, which delivered the facility through its subsidiary PROTT Sdn. Bhd. (PROTT).
Leveraging Penang’s strategic location, the new logistics hub will support end-to-end material flow, with capabilities including kitting, inventory management, automated storage and retrieval systems (ASRS), sequencing, packing, cross-docking, traceability, and just-in-time (JIT) delivery to production lines.
Jabil opened its first Penang location in 1995. Across its eight Malaysian facilities, the company today employs more than 14,000 people and serves a wide range of industries, from automotive and transportation; cloud and data centre infrastructure; defence and aerospace; healthcare; and semiconductor capital equipment.
Jabil has been recognised as Best Employer and Employer of Choice in the Malaysia- International HR (MIHRM) Award in 2024; Responsible Business Alliance Validated Assessment Program (RBA VAP) Gold Certificate (Penang); received the CSR Malaysia Award 2025; Excellence in Corporate Social Responsibility (CSR) Award; ESG Commitment Award by the Association of Malaysian Medical Industries (AMMI); and is a longstanding recipient of MY AmCham Cares Excellence Awards.
To learn about and apply for open positions at Jabil’s facilities in Malaysia, visit jabil.com/careers.
About Jabil
At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, offering comprehensive engineering, supply chain, and manufacturing solutions. With 60 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customised solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimise environmental impact and foster vibrant and diverse communities around the globe. Discover more at www.jabil.com.
Additional Information:
The Jabil Intelligent Logistics Hub Facility Highlights
Scale: The facility accommodates approximately 52,300 pallet positions and incorporates a fully Automated Storage and Retrieval System (ASRS), climate-controlled environments, and intelligent warehouse technologies to ensure the secure handling of high-value and sensitive materials, including semiconductors and advanced electronic components. The facility also features high-bay stacker cranes, autonomous robotics and digital twin capabilities.
Security: Designed and constructed in accordance with FM Global standards, the facility provides a highly resilient and secure operating environment.
Real-time visibility and traceability: At the core of the operation is an integrated Digital Twin platform powered by Artificial Intelligence (“AI”) and Internet of Things (“IoT”) technologies. The data-driven system delivers real-time operational visibility, preventive maintenance capabilities, energy optimisation, and end-to-end inventory traceability, enhancing operational efficiency while supporting long-term reliability and sustainability objectives.
Safety: Supported by an integrated fleet of approximately 160 autonomous mobile robots (AMRs), forklift mobile robots (FMRs), sky transfer units (STUs), robotic arms, and automated scanning systems, the facility enables seamless material movement and inventory management from inbound receipt to outbound fulfilment.
Sustainability considerations have been embedded throughout the facility's design and operations. A rooftop solar photovoltaic system is scheduled for installation in September 2026, supporting the facility's target to achieve GreenRE Bronze certification and contributing to lower-carbon industrial operations.
The facility was delivered by PTT Synergy Group Berhad (Bursa: PTT) through its wholly owned subsidiary, PROTT Sdn. Bhd., (PROTT) which served as the total complete intelligent intralogistics solutions provider, integrating smart warehouse technologies, automation, and digital twin capabilities.
Key Takeaways Jabil passed the earnings acceleration screen with projected current-year earnings growth of 30.1%. CECO Environmental combines accelerating EPS trends with an expected 120.2% earnings growth this year.Klarna Group qualified with accelerating earnings and a projected 105.1% earnings growth for the year. Investors often view consistent earnings growth as a sign of a company’s financial strength. However, an even stronger signal is earnings acceleration, which can be a key driver of stock price gains. Research suggests that many of the top-performing stocks exhibit accelerating earnings before their share prices begin a sustained upward movement.
With that in mind, Jabil Inc. (JBL - Free Report) , CECO Environmental Corp. (CECO - Free Report) and Klarna Group plc (KLAR - Free Report) are demonstrating strong earnings acceleration and are worth buying in the second half of 2026.
What Is Earnings Acceleration? A Guide for Investors Earnings acceleration refers to the incremental growth in a company’s earnings per share (EPS). Put simply, if a company’s quarter-over-quarter earnings growth rate increases over a given period, it can be called earnings acceleration.
In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps identify stocks that haven’t yet caught investors’ attention and, once secured, will invariably lead to a rally in share price. This is because earnings acceleration considers both the direction and magnitude of growth rates.
An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down.
Research Wizard: Your Shortcut to Finding Winning Stocks Look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods’ growth rates. The projected EPS growth rate for the upcoming quarter is expected to exceed that of prior periods.
EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).
EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).
EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).
In addition to this, we have added the following parameters:
Current Price greater than or equal to $5: This screens out low-priced stocks.
Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
The above criteria narrowed the universe of around 7,735 stocks to only three. Here are the stocks:
Jabil Jabil is a global provider of engineering, manufacturing and supply-chain solutions, serving customers across a wide range of industries worldwide. Jabil has a Zacks Rank #1 (Strong Buy). JBL’s expected earnings growth rate for the current year is 30.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CECO Environmental CECO Environmental provides industrial air quality, water treatment and energy transition solutions through its Engineered Systems and Industrial Process Solutions segments. CECO Environmental has a Zacks Rank #1. CECO’s expected earnings growth rate for the current year is 120.2%.
Klarna Group Klarna Group is a digital bank and flexible payments provider serving customers across multiple global markets. Klarna Group has a Zacks Rank #1. KLAR’s expected earnings growth rate for the current year is 105.1%.
Key Takeaways Jabil develops medical solutions for medical device manufacturers, pharma and healthcare technology companies.JBL provides design, production, testing, regulatory, supply chain and cold-chain logistics services.JBL is expanding digital health, AI-enabled medical technologies and smart manufacturing capabilities. Jabil Inc. (JBL - Free Report) is a global manufacturing solutions provider that serves the healthcare industry through its advanced engineering, design and production expertise. The company partners with medical device developers, pharmaceutical companies and healthcare technology firms to develop innovative medical solutions that improve patient care.
Jabil offers a wide range of healthcare products, including diagnostic systems, patient monitoring systems, imaging equipment components, drug delivery devices, surgical instruments and minimally invasive medical technologies. It also manufactures wearable health devices and connected medical products for remote patient monitoring and provides services for orthopedic, cardiovascular and robotic-assisted surgical systems.
The company provides end-to-end support throughout the product development process, including rapid prototyping, testing, regulatory support, supply chain management, aftermarket services, specialized packaging and cold-chain logistics. These services help customers improve efficiency, maintain product quality and meet global healthcare standards.
Jabil is expanding its capabilities in digital health, AI-enabled medical technologies and smart manufacturing to address the growing demand for advanced healthcare solutions. With its global production network, the company is likely to capitalize on the increasing adoption of next-generation medical technologies.
How Are Competitors Advancing in the Healthcare Sector?Jabil faces competition from Celestica Inc. (CLS - Free Report) and Sanmina Corporation (SANM - Free Report) . Celestica is expanding its Healthcare business by supporting the development and production of advanced medical devices. The company provides engineering, manufacturing and supply chain services to healthcare and medical technology companies. Celestica supports the production of medical products used in surgery, medical imaging, diabetes care and diagnostic testing.
Sanmina provides engineering, manufacturing and supply chain services to the healthcare industry. The company supports the production of diagnostic equipment, medical imaging systems, patient monitoring devices and surgical products. Sanmina helps medical device companies with testing, repair and regulatory support.
JBL’s Price Performance, Valuation and EstimatesJabil has gained 47.2% in the past year compared with the industry’s growth of 85.2%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 20.29 forward earnings, lower than 23.95 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for Jabil's fiscal 2026 have increased 3.6% to $12.74 over the past 60 days, while those for 2027 have also increased 15.6% to $16.59.
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Jabil currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Jabil and Celestica are positioned to benefit from rising demand for EMS across AI and cloud.JBL raised its fiscal 2026 revenue outlook to about $35 billion on AI infrastructure demand.CLS' CCS segment is gaining from strong demand for 400G and 800G networking products. Jabil Inc. (JBL - Free Report) and Celestica Inc. (CLS - Free Report) are two leading companies in the global electronics manufacturing services (EMS) industry. Jabil delivers manufacturing, engineering, product design and supply chain capabilities to customers across healthcare, automotive, cloud infrastructure, industrial and consumer electronics.
Celestica provides end-to-end product lifecycle services, spanning design, advanced manufacturing, hardware platforms and supply chain management for customers in communications, enterprise technology, aerospace and defense, healthcare and industrial industries.
With domain-specific expertise in core areas, both Jabil and Celestica are well-positioned to benefit from increasing demand for EMS, driven by investments in artificial intelligence (AI) infrastructure, cloud computing, data centers, healthcare technologies, automotive electronics, and industrial automation. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed to capitalize on these industry trends.
The Case for JBL StockGrowing investments in AI infrastructure are creating a significant growth opportunity for Jabil. Strong demand for AI data centers, networking equipment and warehouse automation has prompted management to raise its fiscal 2026 revenue outlook to approximately $35 billion. The company's diversified exposure to healthcare, automotive, industrial and connected living markets further supports stable long-term growth by reducing dependence on any single end market.
Jabil's global manufacturing network and continued investments in automation, AI-enabled manufacturing and capacity expansion enhance production efficiency, improve operating margins and enable it to support customers worldwide. Combined with strong free cash flow generation and disciplined capital management, these strengths provide the financial flexibility to fund future growth initiatives.
However, Jabil operates in a highly competitive EMS industry and faces competition from leading global peers, such as Flex Ltd. (FLEX - Free Report) and Sanmina Corporation (SANM - Free Report) . The company also remains exposed to customer concentration, supply chain disruptions, foreign exchange fluctuations, and geopolitical and trade uncertainties.
The Case for CLS StockCelestica benefits from the rapid expansion of AI and cloud computing. The rise of AI-driven data centers is fueling strong demand for the company's high-performance networking and data communication products, including switches, routers, storage platforms and data center interconnect solutions. Continued innovation, strategic technology partnerships and robust demand for 400G and 800G networking products are strengthening its Connectivity & Cloud Solutions segment, a key contributor to the company's growth.
The company aims to improve profitability through a greater focus on higher-value products and an optimized business mix. Disciplined cost management and efficient operations have supported margin expansion, while strong engineering and manufacturing capabilities enable the company to meet evolving customer requirements. These operational strengths enhance earnings and reinforce Celestica's competitive position in the EMS market.
However, extensive international operations expose it to foreign exchange fluctuations, geopolitical tensions and global trade uncertainties, particularly given its manufacturing presence in China. The company also faces ongoing challenges in its Advanced Technology Solutions segment, where softer industrial demand and elevated customer inventory levels continue to weigh on growth.
How Do Zacks Estimates Compare for JBL & CLS?The Zacks Consensus Estimate for Jabil’s 2026 sales implies a year-over-year rise of 17.33%, while that for EPS indicates growth of 30.67%. EPS estimates have been trending northward (up 3.6%) on average over the past 60 days.
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The Zacks Consensus Estimate for Celestica’s 2026 sales implies a year-over-year rise of 53.82%, while that for EPS indicates growth of 67.93%. EPS estimates have remained static on average over the past 60 days.
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Price Performance & Valuation of JBL & CLSOver the past year, Jabil has gained 51.4% compared with the industry’s growth of 85.8%. Celestica has rallied 118.3% over the same period.
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Jabil looks more attractive than Celestica from a valuation standpoint. Going by the price/earnings ratio, Jabil’s shares currently trade at 21.34 forward earnings, lower than 27.04 for Celestica.
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JBL or CLS: Which is a Better Pick?Jabil currently sports a Zacks Rank #1 (Strong Buy). Celestica carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both companies expect sales and profits to improve in 2026, supported by rising investments in AI infrastructure and cloud computing. Celestica is delivering strong momentum through its networking and cloud infrastructure business, while Jabil benefits from a broader end-market portfolio and a globally diversified manufacturing platform. Considering a solid Zacks Rank, stronger upward estimate revision and a more attractive valuation, Jabil appears to be the better investment choice at the moment.
Jabil (JBL - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Jabil is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Jabil imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for JabilFor the fiscal year ending August 2026, this electronics manufacturer is expected to earn $12.74 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Jabil. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Jabil to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Jabil has climbed 78.4% in a year, though it trails Flex and Celestica's stronger industry gains.Jabil's optical transceiver modules use Intel silicon photonics to support faster AI data transmission.Jabil's fiscal 2026 and 2027 earnings estimates rose, signaling bullish growth sentiment. Jabil, Inc. (JBL - Free Report) has soared 78.4% over the past year compared with the industry’s growth of 104.2%. It has underperformed peers like Flex Ltd. (FLEX - Free Report) and Celestica Inc. (CLS - Free Report) over this period. While Celestica has gained 145%, Flex surged 234.3%.
One-Year JBL Stock Price Performance
Image Source: Zacks Investment Research
JBL Rides on AI StrengthJabil's extensive manufacturing footprint and expertise position it as an ideal partner in the burgeoning AI/ML ecosystem. The company's commitment to providing unparalleled value to customers underscores its strategic importance in the optical module space. The company’s photonics-based optical transceiver modules are designed to fuel the AI/ML revolution, promise unparalleled performance and scalability, thanks to the collaborative efforts of industry giants.
The breakthrough technology leverages Intel Corporation's (INTC - Free Report) cutting-edge silicon photonics platform, renowned for its manufacturing efficiency and reliability. The collaboration sets a new standard for speed, efficiency and reliability in data transmission. Intel's volume-proven silicon photonics platform, with on-chip laser sources fabricated, tested and burned-in at wafer scale, ensures unparalleled reliability and simplicity in module integration. With a focus on reliability, scalability and performance, its optical transceiver modules are poised to drive significant advancements in data-intensive applications with considerable improvement in the bandwidth capacity of data center racks without requiring modifications to existing infrastructure.
Diversified Bouquet Lends SupportWith a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply chain insights and global product management expertise have put it in good stead. Its extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply chain visibility.
Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. The diversification increases the reliability of the company’s earnings and revenues, thereby driving long-term returns for investors.
The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, diligent execution of operational plans and skillful management of supply chain dynamics. A large-scale portfolio of business sectors offers Jabil a high degree of resilience during macroeconomic and geopolitical disruptions.
Image Source: Zacks Investment Research
Estimate Revision TrendThe Zacks Consensus Estimate for Jabil’s fiscal 2026 earnings has surged 14.9% to $12.74 per share over the past year, while the same for fiscal 2027 has increased 25.1% to $16.59. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
End NoteJabil is bullish on its long-term prospects. The company is well-positioned to capitalize on growth opportunities in areas such as AI data center hardware, power and energy infrastructure, software-defined electric and hybrid vehicles, and healthcare. Strong margins and robust free cash flow are likely to enable continued investment in profitable growth and capital returns to shareholders.
The uptrend in estimate revisions further portrays positive sentiments about the stock’s growth potential. JBL has a long-term earnings growth expectation of 28.5% and delivered a trailing four-quarter average earnings surprise of 5.9%. It has a VGM Score of A. Jabil carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With a solid Zacks Rank and healthy fundamentals, Jabil appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
On June 29, 2026, Jabil Inc (JBL) shares rose 4.2% to a current price of $373.58. Over the past year, the stock has demonstrated strong performance, with a 72.1
Vanguard Small-Cap Value ETF (VBR +0.52%) provides a lower-cost, broader approach to small-cap value, while iShares Russell 2000 Value ETF (IWN +0.48%) offers potentially higher volatility and more concentrated sector tilts.
Both funds target the same segment of the market -- small companies that trade at low price-to-book or price-to-earnings ratios. However, they track different indexes, leading to distinct differences in risk, return, and portfolio composition that investors could consider before choosing between them.
Snapshot (cost & size)MetricVBRIWNIssuerVanguardiSharesExpense ratio0.05%0.24%1-yr return (as of June 23, 2026)26.20%42.30%Dividend yield1.70%1.50%Beta0.951.01AUM$65.5 billion$14.3 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of June 23’s closing price.
Vanguard Small-Cap Value ETF is the more affordable option with an expense ratio of 0.05%, compared to 0.24% for iShares Russell 2000 Value ETF. The Vanguard fund also provides a slightly higher payout for income-seeking investors.
Performance & risk comparisonMetricVBRIWNMax drawdown (5 yr)(24.20%)(26.70%)Growth of $1,000 over 5 years (total return)$1,510.00$1,413.00What's insideThe iShares Russell 2000 Value ETF, launched in 2000, focuses on U.S. small-cap value stocks, carrying 1,407 in its portfolio. Its sector weights include Financial Services at 23.9%, Industrials at 12.1%, and Technology at 11.%. Top positions include TTM Technologies Inc (TTMI 0.05%) at 1.1%, Echostar Corp Class A (SATS 2.18%) at 1.1%, and Hut 8 Mining Corp (HUT 1.07%). It has paid $3.19 per share over the trailing 12 months.
The Vanguard Small-Cap Value ETF, launched in 2004, is less diversified with 841 holdings. Its top sectors include Financial Services at 17.5%, Industrials at 17.4%, and Consumer Cyclical at 12.5%. Its largest positions include Flex Ltd (FLEX +7.75%) at 1.25%, Jabil Inc (JBL +2.39%) at 0.8%, and Tapestry Inc (TPR 3.01%) at 0.7%. The Vanguard fund has a trailing-12-month dividend of $4.14 per share.
The iShares Russell 2000 Value ETF is having an excellent year, with its more diverse small-cap portfolio benefiting from the recent run in small caps relative to mid- and large-cap sectors.
Both funds are good ways to play the small-cap sector, which should be a part of most diversified portfolios.
But the Vanguard Small-Cap Value ETF gets the nod, given that it outperforms IWO on every other longer time frame. VBR has returned more than 18% the past three years, compared to 13.5% for IWO, according to information from each fund as of March 31. The Vanguard offering also bests the iShares competitor on the 5-year lookback, 8.19% to 5.56%, and the 10-year time, 10.58% to 9.42%.
Some of this outperformance may be due to the concentration of holdings in VBR compared to IWO. That may not be replicable in the future. But Vanguard Small-Cap ETF’s low expense ratio has been a factor in past performance and will continue to be, especially when considering IWO’s much higher expenses. Go with Vanguard.
For more guidance on ETF investing, check out the full guide at this link.
Key Takeaways Jabil raised fiscal 2026 AI-related revenue outlook to about $13.6 billion on strong AI demand.JBL added a third hyperscale customer, expanding its AI infrastructure manufacturing opportunities.Jabil is expanding capacity, automation and connected factories to support growing AI production. Artificial intelligence is reshaping global manufacturing as cloud providers and technology companies invest heavily in next-generation computing infrastructure. Jabil, Inc. (JBL - Free Report) is positioning itself to capitalize on that trend by expanding its manufacturing capabilities, strengthening customer relationships and increasing automation across its global operations. While AI infrastructure has become the company’s fastest-growing business, its diversified manufacturing platform provides additional opportunities to benefit from several long-term industrial trends.
How JBL Is Scaling AI ManufacturingAI infrastructure has become Jabil’s largest growth driver, supported by rising demand from hyperscale customers and cloud service providers. The company has steadily expanded its capabilities across the AI hardware ecosystem, including compute, storage, networking, optics, power, cooling and rack integration.
Management recently raised its fiscal 2026 AI-related revenue outlook to approximately $13.6 billion, reflecting continued strength in cloud and data center infrastructure programs. Jabil also added a third hyperscale customer during the latest quarter, further expanding its addressable market and reinforcing its position as a strategic manufacturing partner for next-generation AI deployments.
The company’s exposure extends beyond servers alone, providing manufacturing support for networking equipment, capital equipment and warehouse automation systems that increasingly rely on AI-enabled technologies.
Jabil Builds Capacity for Future DemandMeeting growing AI demand requires significant manufacturing scale. Jabil continues expanding production capacity in North Carolina, Memphis, India and other strategic locations while maintaining its asset-light business model.
The company is investing in connected factories, automation technologies and operational improvements designed to increase productivity and support customer production ramps. At the same time, disciplined capital spending and efficient working capital management are helping improve returns while supporting long-term manufacturing flexibility.
These investments should allow Jabil to scale production efficiently as customer demand continues increasing across AI infrastructure and other higher-growth markets.
Why JBL Is Expanding Global PartnershipsJabil’s expanding relationships with hyperscale customers represent an important competitive advantage. Management noted that the company recently secured a third hyperscale customer and expects the relationship to broaden over time by leveraging expertise across multiple AI infrastructure technologies.
Beyond hyperscale deployments, Jabil continues supporting customers developing advanced networking, cloud infrastructure and automation solutions. These long-term collaborations deepen customer relationships while creating additional opportunities to expand manufacturing programs as new technologies move into commercial production.
Peers such as Celestica, Inc. (CLS - Free Report) and Flex, Ltd. (FLEX - Free Report) are also investing to capture AI infrastructure demand, underscoring the industry’s growing focus on advanced manufacturing capabilities for data center and networking applications.
Jabil Balances Growth With Execution RisksAlthough the long-term opportunity remains attractive, investors should continue monitoring execution risks. Customer concentration remains an important consideration, while geopolitical uncertainty and global trade dynamics could affect manufacturing operations and supply chains.
Demand also remains uneven across some end markets. Management continues to exercise caution regarding automotive demand despite recent improvement, and Connected Living continues to reflect a mixed consumer environment. Competitive pressures within the electronic manufacturing services industry and the possibility of customers bringing production in-house also remain ongoing challenges.
How JBL Technical Signals Complement the TrendJabil currently carries a Zacks Rank #2 (Buy), supported by a Momentum Score of A, Growth Score of B and VGM Score of A. Those indicators align with the company’s favorable earnings momentum and expanding participation in several long-term manufacturing trends, particularly AI infrastructure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
At the same time, the stock’s Value Score of C reminds investors that valuation remains an important consideration following its strong share price appreciation. While AI-related demand continues creating meaningful growth opportunities, sustained execution and disciplined capital allocation will remain essential to supporting the company’s long-term investment case.
Key Takeaways Jabil's diversified segments help balance revenue across AI, healthcare, automotive and cloud markets.JBL raised its fiscal 2026 AI revenue outlook to about $13.6 billion and added a third hyperscale customer.Jabil is expanding manufacturing capacity and automation while managing customer concentration risks. Jabil, Inc. (JBL - Free Report) has evolved well beyond its roots as an electronics manufacturing services provider. While AI infrastructure has emerged as the company’s most powerful growth catalyst, improving trends in industrial automation, healthcare, automotive and digital commerce have broadened its revenue base. That diversification is attracting greater investor attention because it helps reduce dependence on any single end market while positioning Jabil to benefit from several long-term technology trends.
How JBL Diversifies Revenue GrowthJabil organizes its operations into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce. During the fiscal third quarter of 2026, Intelligent Infrastructure contributed approximately 48% of revenue, followed by Regulated Industries at 36% and Connected Living & Digital Commerce at 16%.
Each business serves different industries, ranging from automotive, healthcare and renewable energy to networking, cloud infrastructure, warehouse automation and consumer electronics. Management has intentionally built a diversified operating model that seeks to balance operating income and cash flow across multiple end markets rather than relying on a single product category. This approach has helped cushion cyclical weakness in some businesses while allowing faster-growing markets to offset softer demand elsewhere.
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Why Jabil Is Winning AI Infrastructure DemandAI infrastructure has become Jabil’s primary growth engine. Strong spending by hyperscale customers continues to drive demand across cloud and data center infrastructure, networking equipment, capital equipment and warehouse automation.
Management recently increased its fiscal 2026 AI-related revenue outlook to approximately $13.6 billion, up from its previous forecast and well above fiscal 2025 levels. The company also added a third hyperscale customer during the latest quarter, expanding opportunities across compute, storage, networking, optics, power, cooling and rack integration solutions.
These capabilities position Jabil as an important manufacturing partner as enterprises continue investing in AI infrastructure, with management expecting AI-related growth to remain robust even as the revenue base expands further in fiscal 2027.
JBL Expands Its Global Manufacturing FootprintSupporting that demand requires continued investment in manufacturing capacity. Jabil is expanding operations in North Carolina, Memphis, India and other strategic locations while maintaining an asset-light operating model.
The company is also investing in connected factories, automation and AI-enabled manufacturing to improve productivity and support customer production ramps. Disciplined capital spending and working capital management have allowed Jabil to increase manufacturing capacity without materially increasing capital intensity, supporting both operating efficiency and long-term margin expansion.
Jabil Still Faces Important Business RisksDespite its favorable growth outlook, investors should continue monitoring several risks. Customer concentration remains one of the company’s biggest challenges, as reduced demand from major customers could materially affect financial performance.
Jabil also operates in a highly competitive electronic manufacturing services industry alongside companies such as Flex Ltd. (FLEX - Free Report) and Celestica, Inc. (CLS - Free Report) , both of which continue investing in advanced manufacturing capabilities. In addition, geopolitical uncertainty, uneven consumer demand, automotive volatility and the possibility that some customers could shift production in-house remain meaningful risks that could affect future growth.
How JBL Rating Signals Fit the Bigger PictureJabil currently carries a Zacks Rank #2 (Buy), supported by a Momentum Score of A, Growth Score of B and VGM Score of A. Those indicators reflect favorable earnings momentum and solid growth characteristics over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
At the same time, the company’s Value Score of C suggests valuation is less compelling following the stock’s strong appreciation. While expanding AI infrastructure demand and diversified operations continue to support a constructive outlook, investors should balance those strengths against valuation considerations and the cyclical nature of several of Jabil’s end markets.
Key Takeaways Jabil raised fiscal 2026 guidance after revenue, EPS and free cash flow topped expectations.JBL expects about $13.6 billion in fiscal 2026 AI revenue driven by hyperscale demand.JBL trades near its sub-industry forward P/E average as execution remains key after the rally. Jabil, Inc. (JBL - Free Report) has been one of the standout performers in the electronics manufacturing services industry, with its shares climbing sharply as AI infrastructure spending accelerated. The rally reflects growing investor confidence in the company’s ability to capitalize on AI-driven demand while improving profitability across its diversified business. The key question now is whether Jabil’s earnings growth can continue to justify its higher valuation.
JBL Earnings Continue Building MomentumJabil delivered another strong fiscal third quarter, reinforcing confidence in its execution. Revenue increased 11.8% year over year to $8.75 billion, while core diluted earnings per share climbed 23.9% to $3.16, exceeding the Zacks Consensus Estimate. The company also generated core operating income of $504 million, with its core operating margin improving to 5.8%.
Cash generation remained another bright spot. Adjusted free cash flow reached $359 million during the quarter, prompting management to raise its fiscal 2026 adjusted free cash flow outlook to more than $1.4 billion. Broad-based strength across AI infrastructure, capital equipment and warehouse automation, together with improving automotive and connected living demand, supported the stronger-than-expected results.
Image Source: Zacks Investment Research
Why Jabil’s Outlook Remains ConstructiveManagement continues to expect favorable business conditions through the remainder of fiscal 2026. The company increased its full-year revenue outlook to approximately $35 billion while projecting core diluted earnings per share of about $12.70 and core operating margins of approximately 5.8%.
AI infrastructure remains the primary growth driver. Management now expects approximately $13.6 billion in AI-related revenue during fiscal 2026, supported by expanding hyperscale customer relationships and increasing demand across cloud infrastructure, networking, compute, storage, cooling and rack integration. Automotive demand has also improved from earlier expectations, while healthcare, digital commerce and warehouse automation continue contributing to a more balanced growth profile.
Strong operating leverage, disciplined capital spending and an asset-light manufacturing strategy should continue supporting margin expansion and healthy cash generation as new production capacity comes online.
What Could Limit JBL's Upside?Although Jabil’s operating momentum remains favorable, several factors warrant caution. Customer concentration continues to expose the company to the risk of reduced orders from major clients. The electronic manufacturing services industry also remains highly competitive, with companies such as Flex, Ltd. (FLEX - Free Report) and Sanmina Corporation (SANM - Free Report) competing for many of the same outsourcing opportunities.
Macroeconomic uncertainty, geopolitical developments and uneven demand across consumer-oriented markets could also create periodic volatility. While automotive trends have improved recently, management continues to view that end market cautiously because of ongoing demand fluctuations.
How JBL Valuation Shapes ExpectationsJabil's strong share price performance has lifted its valuation. The stock currently trades at a forward 12-month P/E of 25.52, compared with the sub-industry average of 25.89. While the premium is not significant, the valuation suggests much of the company's improving AI infrastructure outlook and earnings momentum may already be reflected in the share price. As a result, sustained revenue growth, margin expansion and continued execution will likely be important drivers of additional upside.
Image Source: Zacks Investment Research
How JBL Ranking Indicators Support InvestorsJabil currently carries a Zacks Rank #2 (Buy), reflecting favorable near-term earnings momentum. The stock also earns a Momentum Score of A, Growth Score of B and VGM Score of A, indicating attractive momentum and growth characteristics that complement its positive earnings outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the company’s Value Score of C suggests investors should balance those encouraging indicators against valuation considerations. Jabil’s AI-driven growth story remains intact, but after a powerful rally, continued execution will likely play an increasingly important role in determining future shareholder returns.
NICHOLASVILLE, Ky.--(BUSINESS WIRE)--Badger Technologies, a product division of Jabil Inc. (NYSE: JBL), today announced the appointment of retail industry veteran John Gehre as Chief Executive Officer, alongside expanded leadership roles for Chris Green and Paul Ambruso, and the formation of the company's inaugural Strategic Advisory Board. The appointments mark a milestone in the company's development, as retailers increasingly seek AI-powered retail intelligence solutions to improve inventory.
Jabil is downgraded to hold as valuation has rerated to ~23x NTM PE, near its 10-year high. AI-driven revenue growth remains robust, with management guiding for ~$13.6B in FY2026 AI revenue, up 50% year-over-year. JBL's third hyperscaler win and expanded capacity underpin a credible path to >6% operating margin in FY2027.
Key Takeaways Celestica is benefiting from AI, cloud and networking demand, including 800G and 400G switches.JBL is expanding AI data center manufacturing and seeing strength across key end markets.SANM cites AI infrastructure wins, growing bookings and a pipeline extending into 2027-2028. The electronics manufacturing services (EMS) space has been benefiting from astonishing investment in artificial intelligence (AI) and cloud infrastructure, the growing transition to connected and electric vehicles and AI-led medical devices.
The Zacks defined Electronics - Manufacturing Services industry is currently in the top 25% of the Zacks Industry Rank. Since the industry is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
The EMS industry players provide design, engineering and manufacturing services to electronics original equipment manufacturers (OEMs). Here we recommend three global EMS leaders, namely Celestica Inc. (CLS - Free Report) , Jabil Inc. (JBL - Free Report) and Sanmina Corp. (SANM - Free Report) , that are strategically positioned in the EMS landscape and have the ability to cater to the evolving AI demands of business enterprises.
The three stocks are flying high on Wall Street year to date. Despite this stiff northward journey, they still have more fireworks in store for the rest of 2026. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Celestica Inc.Celestica is one of the largest EMS companies in the world, serving OEMs, cloud-based and other service providers, and business enterprises across several industries. CLS’ focus on product diversification and increasing its presence in high-value markets is positive.
CLS’ strong research and development foundations allow it to produce high-volume electronic products and highly complex technology infrastructure products for a wide range of industries.
CLS is benefiting from healthy demand trends in the Connectivity & Cloud Solutions segment. The growth is primarily backed by CLS’ strength in Hyperscaler Portfolio Solutions networking business and optical programs, especially increasing demand for 800G and 400G network switches.
The growing proliferation of AI-based applications and generative AI tools is fueling solid AI investments across the technology ecosystem. This, in turn, is driving demand for CLS’ enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers and storage-related products. To further capitalize on this trend, Celestica is steadily expanding its offerings through innovation and strategic collaboration.
Solid Estimate RevisionsCelestica has an expected revenue and earnings growth rate of 53.8% and 67.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 13.6% in the last 60 days. It has a long-term (3 to 5 years) growth rate of 45.3%, significantly higher than the S&P 500 Index’s current growth rate of 17.6%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Jabil Inc. Jabil is one of the largest global suppliers of EMS solutions. JBL offers electronics design, production, product management and after-market services to customers in more than a dozen industry verticals.
JBL has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst.
JBL’s focus on end-market and product diversification is a key catalyst. JBL’s top-line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets.
JBL is set to invest heavily over the next several years to expand its manufacturing capabilities for the AI data center vertical. This will significantly boost the company’s position in the AI hardware supply chain.
JBL’s unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good standing.
Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption.
An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables JBL to scale up production per the evolving market dynamics.
Jabil is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long run. The company is benefiting from solid demand in key end markets together with excellent operational execution and skillful management of supply-chain dynamics.
Solid Estimate RevisionsJabil has an expected revenue and earnings growth rate of 14.2% and 27.7%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% in the last seven days. It has a long-term growth rate of 28.5%, well above the S&P 500 Index’s current growth rate of 17.6%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Sanmina Corp.Sanmina focuses on engineering and fabricating complex components and on providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets, including industrial, medical, defense and aerospace, automotive, communications and cloud infrastructure.
SANM’s diverse portfolio and end-to-end product lifecycle management allow customers to rely on a single partner and reduce complexity in operations. Strategic expansion into high-growth industries backed by its strong global network and deep expertise in advanced electronics manufacturing, acts as a tailwind.
SANM aims to strengthen technology leadership by working closely with customers on future manufacturing requirements and aligning its engineering and software investments to those needs. SANM’s 42Q connected manufacturing platform is designed to integrate data across factories and suppliers, creating a more current operational view that can shorten decision cycles and improve visibility across distributed manufacturing.
SANM is also using the ZT Systems integration to expand its addressable market beyond full systems builds by layering in Sanmina capabilities such as sub-assemblies and related CPS technologies over time. In communications networks and cloud and AI infrastructure, the company is witnessing program activity, with management noting continued bookings and new program wins and pointing to a pipeline that extends into 2027 and 2028.
Solid Estimate RevisionsSanmina has an expected revenue and earnings growth rate of 75.5% and 85.8%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 10.1% in the last 60 days. It has a long-term growth rate of 27.8%, well above the S&P 500 Index’s current growth rate of 17.6%.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Jabil (JBL - Free Report) Headquartered in St. Petersburg, FL, Jabil, Inc. is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
JBL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 30.31; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $12.45 per share. JBL boasts an average earnings surprise of +5.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, JBL should be on investors' short list.
Jabil NYSE: JBL is perfectly positioned for the AI supercycle, and its stock price looks poised to continue rising for years. The thesis begins with Jabil’s position as a manufacturing specialist for mega tech companies. It designs, builds, and manages complex hardware manufacturing supply chains across industries, providing infrastructure, engineering, and logistics. The thesis is strengthened by catalysts such as AI, U.S. expansion, client utility, and the AI virtuous cycle.
Jabil Today
$382.10 +9.11 (+2.44%)
As of 11:42 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$189.60▼
$428.93Dividend Yield0.08%
P/E Ratio47.74
Price Target$453.67
The AI boom drives demand for servers, photonics, and liquid-cooling systems today, and for products from infrastructure to IoT-connected devices long into the future.
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Client utility is evident in its services and footprint, which includes more than 100 facilities in over 25 countries, enabling highly localized and resilient supply chain solutions.
Finally, there is the AI virtuous cycle. A virtuous cycle is when the output of new technology leads to improvements throughout the system and technological advancement.
As it stands, Jabil is implementing AI and automation throughout its operations, increasing efficiency and capabilities and advancing technology.
Jabil Sends Signal: Outperformance in Q1 and Robust GuidanceJabil had a solid fiscal Q3, with revenue growing nearly 12% to $8.8 billion, topping consensus estimates of $8.61 billion.
Growth was underpinned by datacenter and AI strength, which management says improved meaningfully, as well as by improvements in other previously underperforming segments, such as Automotive and Connected Living.
Margin news was also bullish. The company widened gross and net margins despite input cost pressures and increased R&D. Net margin rose to 3.1% and adjusted earnings per share (EPS) came in at $3.16, up 24% from last year and 6 cents better than expected. Free cash flow was also solid, up abour 22% year-to-date (YTD) and sufficient to support aggressive share repurchases.
The best news in the fiscal Q3 release was the guifdance, which indicated that strength would persist into the subsequent fiscal year. Executives set aggressive targets for fiscal Q4, well above the consensus, and lifted their forecast for the year. As it stands, revenue is forecast at $35 billion, up more than 15% year-over-year and 200 bps above MarketBeat’s reported consensus, with execs “feeling good” about the setup for next year.
Jabil’s Capital Return Keeps Institutions and Analysts InterestedJabil’s free cash flow is a significant factor as it enables aggressive share buybacks. The company targets using 80% of free cash flow for buybacks, which has amounted to over $800 million so far during its fiscal year, The trailing 12-month (TTM) activity reduced the count by 2.55% on average for the quarter and 3.85% for the YTD period, providing significant leverage for investors.
The only downside is that aggressive buyback activity is reflected on the balance sheet, revealing diminished cash and reduced equity at Q3’s end. The offset, however, is that investments, contract assets, and receivables all increased, indicating Q3’s cash reduction is no problem for shareholders.
Jabil’s analyst trends reveal a triple-strength sentiment tailwind is in place, including increased coverage, firming sentiment with an 82% Buy-side bias, and an uptrend in price targets. While consensus lags the market as of mid-June 2026, it is up more than 100% on a TTM basis, with recent targets pushing the high end. It stands at around $430, implying a more than 15% upside.
Institutional activity is likewise bullish. They own more than 90% of the stock and have been accumulating shares. The TTM balance is approximately $ 1.50 to $1 and may strengthen as the fiscal year-end approaches.
Jabil Pulls Back: Buy the Dip?Jabil’s stock price action surged ahead of the release, indicating an optimistic market anticipating strength. The caveat is that JBL’s price action peaked and may continue to pull back in June. Expected strength amounts to a sell-the-news event, and it will be several more weeks until Jabil’s leading clients begin reporting.
The likely outcome is that subsequent reports from Jabil and its clientele will affirm the robust outlook and trigger a trend-following signal in this market. Support targets include $370 and $355, either of which may trigger the signal.
Jabil’s biggest risk this year is its valuation. Trading at over 30x, JBL is at historically high levels, pricing in solid growth. This leaves the company open to executional risk as production ramps up and to stock price volatility. Any delays, missteps, or changes to fundamental outlook will be reflected in the stock's price. Additionally, a sluggish recovery in legacy markets may offset AI strengths.
Should You Invest $1,000 in Jabil Right Now?Before you consider Jabil, you'll want to hear this.
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The latest 8-K filing from Jabil Inc JBL , released on June 17, 2026, indicates a robust performance for the third quarter of fiscal year 2026. The company's net revenue hit $8.8 billion, exceeding the market consensus of $8.6 billion, showcasing the company's adaptability and resilience in a fluctuating economic landscape.
Jabil Inc. is a U.S.-based company providing engineering, manufacturing, and supply chain solutions, including comprehensive electronics design, production, and product management services across various industries. The company operates through three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.
Performance Highlights and Challenges Jabil has reported financial achievements that extend beyond the expectations set by analysts. The company recorded U.S. GAAP operating income of $445 million, along with a diluted earnings per share (EPS) of $2.59, both above forecasts. Despite these positive results, challenges remain, particularly in addressing customer demand fluctuations and mitigating risks stemming from a limited supplier base.
CEO Mike Dastoor emphasized the importance of strong demand driven by AI infrastructure, stating, “Jabil delivered a very strong third quarter, with results ahead of our expectations across revenue, core operating margin, core EPS, and free cash flow.” The ability to perform well in diverse areas like Automotive and Connected Living, which had previously faced pressure, is crucial for the company's sustained growth.
Financial Achievements and Industry Significance Jabil's notable financial achievements include a core operating income (Non-GAAP) of $504 million and a core diluted EPS of $3.16. The performance reinforces the company’s position in the hardware industry, where margins and free cash flow are vital for long-term sustainability. As a key player, Jabil's ability to adapt and leverage its diversified model supports its market resilience and profitability.
For fiscal year 2026, Jabil raised its revenue outlook to approximately $34.243 billion, with a core operating margin (Non-GAAP) expected to be around 5.8% and a projected core diluted EPS of $12.70. These improved forecasts serve as a testament to Jabil's strength and operational efficiency.
Metric Q3 2026 Actual Q3 2026 Estimate Net Revenue $8.8 billion $8.6 billion U.S. GAAP Operating Income $445 million N/A Core Operating Income (Non-GAAP) $504 million N/A U.S. GAAP Diluted EPS $2.59 $2.57 Core Diluted EPS (Non-GAAP) $3.16 N/A
Analysis of Performance Jabil's quarter-over-quarter and year-over-year improvements indicate a successful navigation through economic uncertainties, reaffirming the effectiveness of its operational strategies. The company’s focus on capital efficiency and profitable growth has enabled it to maintain a strong balance sheet, which is vital for thriving in the competitive hardware sector.
The overall rise in revenue and EPS numbers is a strong endorsement of Jabil’s ability to leverage growth opportunities, especially in technology-centric sectors where demand is surging.
GuruFocus Valuation Check According to GuruFocus data, Jabil Inc JBL holds a GF Score of 80/100, indicating strong performance potential. However, with a current price of $375.51 significantly above the GF Value of $174.64, the stock appears overvalued by approximately 115.0%. This suggests a cautionary approach for potential investors as the price may not reflect underlying value.
The financial strength score of 6/10 and profitability rank of 8/10 indicates a solid but improving financial profile. Additionally, Jabil's growth rank stands at an impressive 10/10, reflecting robust future prospects. However, insider activity shows that insiders sold $14.0 million in shares over the last three months, which may indicate caution on their part. Investors should consider these insights cautiously.
For a deeper dive, visit the Jabil Inc stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Jabil Inc for further details.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SummaryCompaniesAdani partnership could build scaled AI infrastructure manufacturing in India, CEO saysQuarterly profit per share and sales top Wall Street estimatesAI-related 2026 revenue forecast increased to $13.6 billionJune 17 (Reuters) - Jabil (JBL.N), opens new tab raised its 2026 profit forecast on Wednesday, as the electronic-component maker looks to capitalize on AI-led demand for data centers, sending its shares up by more than 10% in morning trading.
A surge in data-center infrastructure spending, driven by strong demand for AI computing power, has benefited companies such as Jabil.
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"AI infrastructure demand remains extremely strong," said CEO Mike Dastoor, adding the company continued to see better-than-expected performance particularly in its automotive and connected living segment that had earlier been under pressure.
It expects AI-related revenue to be about $13.6 billion in 2026, $500 million higher than its March forecast of $13.1 billion, Dastoor said on a post-earnings call.
Jabil shares have outperformed the broader market over the past yearHe said Jabil's alliance with Adani Enterprises(ADEL.NS), opens new tab represents the potential to help establish a scaled AI infrastructure manufacturing platform in India, "a market we believe will become increasingly important for both domestic and global AI infrastructure demand."
The St. Petersburg, Florida-based company announced a partnership with Adani earlier this week to make next-gen liquid-cooled AI racks along with servers and storage systems for hyperscalers and enterprise data center customers.
The company expects fiscal 2026 adjusted profit per share to be $12.70, compared with its prior forecast of $12.25. It also raised its annual revenue forecast to $35 billion from $34 billion earlier.
Analysts on average expect annual revenue of $34.2 billion and adjusted profit per share of about $12.4, according to data compiled by LSEG.
The manufacturer, which makes components for Apple (AAPL.O), opens new tab, also provides design, production and management solutions to various industrial end markets including technology, automotive, transportation, healthcare, storage and packaging.
Jabil posted third-quarter adjusted profit per share of $3.16, compared to analysts' expectations of $3.10.
Third-quarter revenue rose 11.8% to $8.75 billion, beating Wall Street estimates of $8.6 billion.
Reporting by Megavarshini G. Somasundaram and Anshuman Tripathy in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Jabil Inc (NYSE:JBL) shares moved higher after the electronics manufacturing services company reported fiscal third quarter financial results that exceeded Wall Street estimates and raised its full-year guidance.
For the quarter, the electronics and manufacturing services company posted net revenue of $8.8 billion, outpacing analyst expectations of $8.55 billion.
Jabil reported core diluted earnings per share of $3.16, beating the consensus estimate of $3.08 per share.
The quarterly outperformance was driven primarily by sustained momentum in technology sectors alongside stabilization in segments that had previously faced headwinds.
Jabil CEO Mike Dastoor noted that artificial intelligence infrastructure demand remains extremely strong, prompting a meaningful increase to the company's full-year AI-related revenue outlook.
“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” Dastoor said. “At the same time, we continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in Automotive and Connected Living.”
Citing this robust demand and broad portfolio improvement, Jabil raised its full-year guidance for fiscal year 2026. The company now expects net revenue of $35 billion, a non-GAAP core operating margin of 5.8%, and core diluted earnings per share of $12.70. Adjusted free cash flow for the full year is now projected to exceed $1.4 billion.
For the upcoming fourth quarter of fiscal 2026, Jabil issued guidance projecting net revenue between $9.2 billion and $10.0 billion. Core diluted earnings per share for the fourth quarter are estimated to fall within the range of $3.80 to $4.20, while GAAP diluted earnings are expected between $3.24 and $3.64 per share.
Management indicated that the current momentum provides a favorable baseline as the company looks ahead toward the setup for fiscal year 2027.
Shares of Jabil added 2% at about $382 on Wednesday afternoon, paring gains of as much as 14% earlier in the session.
Jabil (JBL - Free Report) came out with quarterly earnings of $3.16 per share, beating the Zacks Consensus Estimate of $3.12 per share. This compares to earnings of $2.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.28%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $2.54 per share when it actually produced earnings of $2.69, delivering a surprise of +5.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Jabil, which belongs to the Zacks Electronics - Manufacturing Services industry, posted revenues of $8.75 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.39%. This compares to year-ago revenues of $7.83 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Jabil shares have added about 64.7% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Jabil?While Jabil has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Jabil was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.70 on $8.98 billion in revenues for the coming quarter and $12.36 on $34.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Manufacturing Services is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Computer and Technology sector, Progress Software (PRGS - Free Report) , has yet to report results for the quarter ended May 2026. The results are expected to be released on June 30.
This business software maker is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of +6.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Progress Software's revenues are expected to be $241.7 million, up 1.8% from the year-ago quarter.
U.S. stocks were mostly higher, with the Dow Jones index gaining around 200 points on Wednesday.
Shares of Jabil Inc (NYSE:JBL) rose sharply following upbeat quarterly earnings.
Jabil reported quarterly earnings of $3.16 per share which beat the analyst consensus estimate of $3.10 per share. The company reported quarterly sales of $8.751 billion which beat the analyst consensus estimate of $8.605 billion.
Jabil shares jumped 9.8% to $412.35 on Wednesday.
Here are some other big stocks recording gins in today’s session.
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At the opening bell, Diane King Hall discusses this morning's top moving stocks in companies like Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp. (KLAC) receiving price targets hikes from Citigroup. She also highlights earnings movers in Jabil's (JBL) earnings beat and La-Z-Boy (LZB) raising guidance as U.S. consumers show strength.
Shortly after Wednesday's opening bell, shares of Jabil (JBL 0.83%) rose 14% above Tuesday's closing price. The electronics manufacturing and engineering expert published Q3 2026 results early in the morning, beating Wall Street's consensus estimates across the board.
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The numbers behind the pop Jabil's Q3 sales increased by 12% to $8.75 billion. Adjusted earnings jumped 24% to $3.16 per diluted share. Your average analyst firm would have settled for earnings near $3.08 per share on revenues in the neighborhood of $8.55 billion. Looking ahead, management set Q4 and full-year earnings guidance above current Street projections.
Five of Jabil's seven sub-segments are delivering double-digit percentage growth in 2026, led by an estimated 47% surge in cloud and data center infrastructure. Within this division, CFO Greg Hebard highlighted strong demand for networking products, especially in India's booming market.
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The land-and-expand playbook Jabil expects the AI-focused data center orders to continue rising at a similar pace in 2027. The company is building additional manufacturing facilities to meet the surge in incoming orders. Management targets a 10% capacity increase over the next year.
And the company is building its order book by boosting its importance to each new customer over time.
"We enable customers to scale AI much faster by delivering fully integrated systems across compute, storage, networking, power, advanced cooling," said CEO Mike Dastoor. "We often go in through one channel or one capability and expand the relationship by offering other end-to-end solutions to customers. We actually won our second hyperscaler in exactly that way, and we're actually winning our third hyperscaler, and the strategy will be exactly the same."
Jabil's stock has approximately doubled over the last 52 weeks, amid a steady rhythm of beat-and-raise reports. The future still looks bright, too. Landing one hyperscaler is a win. Landing three using the same playbook suggests Jabil has figured out a repeatable formula for sustained growth in the AI infrastructure boom.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Jabil JBL shares are surging after the company reported a strong Q3 performance and provided optimistic Q4 guidance, highlighting robust demand for AI infrastructure. The results exceeded management's expectations across several key metrics, reinforcing confidence in the company's growth trajectory.
Q3 Results: Revenue rose to $8.75 billion from $7.83 billion year-over-year, surpassing the FactSet consensus of $8.61 billion. Core EPS increased to $3.16 from $2.55, exceeding the $3.10 estimate, while GAAP EPS stood at $2.59. Q4 Guidance: JBL forecasts revenue between $9.2 billion and $10.0 billion, with core EPS expected in the range of $3.80 to $4.20. This guidance is well above the FactSet consensus of $8.97 billion and $3.72, and indicates core operating income of $589 million to $649 million. AI Demand: Management reported that demand for AI infrastructure remains robust, fueling growth across various sectors, including cloud services, data centers, networking, and capital equipment. This diverse demand base suggests JBL is benefiting from multiple facets of the AI infrastructure expansion. Portfolio Recovery: The quarter also demonstrated strong performance in Automotive and Connected Living, indicating a recovery in areas previously under pressure, which reduces reliance on AI-led growth. Margins and Cash Flow: Core operating income climbed to $504 million, resulting in a core operating margin of approximately 5.8%. Adjusted free cash flow for the first nine months reached $991 million, reflecting effective cash generation alongside revenue growth. The key takeaway from JBL's report is the evidence that its AI infrastructure opportunity is evolving into a broader operational success. The Q4 guidance serves as a significant catalyst, suggesting an increase in revenue and core operating income. Investors are likely reassured by the positive trends in Automotive and Connected Living, which were previously struggling. The focus now shifts to sustainability: whether demand in liquid cooling, data center power, and networking can continue to grow while enhancing margin mix. Sentiment is expected to remain positive if JBL balances AI-driven growth with cash generation and a recovery in non-AI sectors. However, any delays, component shortages, or renewed cyclical challenges could impact this outlook.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The company reported adjusted earnings of $3.16 per share, topping the analyst consensus estimate of $3.10. Revenue increased 12% year over year to $8.75 billion, exceeding analysts’ expectations of $8.61 billion. Cash and cash equivalents totaled $1.36 billion as of May 31.
Segment PerformanceRevenue from the Regulated Industries segment increased 4% from a year earlier, while Intelligent Infrastructure revenue climbed 21%. Connected Living & Digital Commerce revenue rose 5%.
Core EBITDA increased to $654 million from $571 million in the prior-year quarter.
AI Demand Fuels GrowthChief Executive Officer Mike Dastoor said demand for AI infrastructure remains “extremely strong,” prompting the company to raise its fiscal 2026 outlook.
Jabil now expects AI-related revenue of about $13.6 billion in fiscal 2026, up $500 million from its March forecast and higher than the $9 billion reported in fiscal 2025.
Dastoor said the company’s end-to-end manufacturing capabilities allow customers to scale AI deployments by integrating compute, storage, networking, power, advanced cooling and full system assembly.
He added that Jabil recently secured its third hyperscale customer. The engagement is expected to generate a few hundred million dollars in revenue during fiscal 2027 before growing into a billion-dollar opportunity or more in fiscal 2028.
Capacity Expansion ContinuesChief Financial Officer Greg Hebard said Jabil is expanding its global manufacturing footprint by about 10% through new facilities and site expansions.
He said the company expects to support similar AI revenue growth in fiscal 2027 while keeping capital expenditures within its long-term target range of 1.5% to 2% of revenue.
Dastoor said new capacity is coming online in North Carolina, Memphis, India, Mexico and other locations. He added that the North Carolina facility remains on schedule, with one customer already committed and additional customer discussions underway. The site is expected to begin ramping production by January.
India Partnership And Storage Demand Offer UpsideDastoor said Jabil’s proposed alliance with Adani Enterprises could establish a significant AI infrastructure manufacturing platform in India, although the companies have not finalized an agreement. He said meaningful contributions are more likely to begin in fiscal 2028.
He also said the Hanley acquisition is performing better than expected and strengthening Jabil’s capabilities in power equipment, energy systems and services. In addition, storage demand tied to the company’s second hyperscale customer continues to accelerate.
OutlookFor the fiscal fourth quarter, Jabil expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion. The company forecasts adjusted earnings of $3.80 to $4.20 per share, compared with analysts’ expectations of $3.72.
For fiscal 2026, Jabil raised its revenue outlook to $35.00 billion from its previous forecast of $34.00 billion, ahead of the analyst consensus estimate of $34.24 billion.
The company also increased its adjusted earnings outlook to $12.70 per share from $12.25, topping the consensus estimate of $12.38.
JBL Price Action: Jabil shares were up 4.27% at $391.55 at the time of publication on Wednesday, according to Benzinga Pro data.
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Manufacturing-solutions giant Jabil added another clean beat to an already exceptional fiscal year. The St. Petersburg-based company posted fiscal third-quarter adjusted EPS of $3.16, topping the Zacks Consensus Estimate of $3.12 and climbing sharply from $2.55 a year ago, while revenue of $8.75 billion surpassed the consensus by 1.39% and rose from $7.83 billion.
That works out to an earnings surprise of +1.28% and a revenue surprise of +1.39%, with Jabil now having beaten consensus EPS and revenue estimates in each of the last four quarters.
The print was good enough to send shares nearly 10% higher in early trading Wednesday morning, tacking on to the extraordinary 65% year-to-date run in the stock ahead of the print.
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Digging Deeper into Jabil’s Quarterly PerformanceThe story underneath the headline is the same one that has driven Jabil’s re-rating all year: artificial intelligence. CEO Mike Dastoor was unambiguous, noting that AI infrastructure demand remains extremely strong and that the company’s full-year AI-related revenue outlook is now meaningfully higher.
Jabil’s Intelligent Infrastructure segment — which spans cloud and data-center hardware, networking and communications, and capital equipment — has become the centerpiece of the investment thesis, and management’s commentary suggests that engine is still accelerating. What’s encouraging for the durability of the story is that the strength is broadening: Dastoor flagged better-than-expected performance in areas that had previously been under pressure, particularly Automotive and Connected Living. A business firing on its AI cylinders while its cyclical end markets quietly recover is a healthier setup than one leaning entirely on a single theme.
Crucially, this was not just a revenue story — the quality of earnings improved alongside the top line. Core operating income rose to $504 million from $420 million a year ago, and GAAP operating income reached $445 million. Additionally, margins are expanding even as Jabil scales, a reflection of the multi-year repositioning toward higher-value engineering and supply-chain offerings and away from the lower-margin, commoditized work that once defined the contract-manufacturing model.
The guidance raise is the part that should command the most attention, and it’s where Jabil distinguished itself. Management lifted its full-year fiscal 2026 outlook to roughly $35 billion in revenue, a 5.8% core operating margin, core EPS of $12.70, and adjusted free cash flow of more than $1.4 billion.
The fourth-quarter framework is even more telling: Jabil guided to revenue of $9.2 billion to $10.0 billion and core EPS of $3.80 to $4.20, a meaningful step up from the $3.16 just delivered. That implied sequential acceleration into the typically strong fiscal fourth quarter signals genuine momentum rather than a company simply clearing a low bar — and notably, management volunteered that it feels “very good about the setup for fiscal 2027,” an early tell that the AI capital-spending cycle still has runway.
The Zacks RundownFrom our perspective, the setup remains constructive. Jabil carries a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision trend heading into the print, and sits within the Electronics – Manufacturing Services industry, which ranks in the top 28% of more than 250 Zacks industries.
That’s a meaningful tailwind, since stocks in the top half of Zacks Ranked Industries have historically outperformed those in the bottom half by a factor of more than two to one. The current consensus calls for $3.70 in EPS on $8.98 billion of revenue next quarter and $12.36 for the full fiscal year — figures that look likely to drift higher now that management’s own full-year EPS guide of $12.70 sits above the Street. Upward estimate revisions in the days ahead would be the natural next step, and they are the lifeblood of the Zacks Rank.
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The read-through to the broader electronics manufacturing and supply-chain space is meaningful, because Jabil is one of the cleanest public proxies for physical AI infrastructure buildout. Its results corroborate the capital-spending signals coming from the hyperscalers and from peers across the contract-manufacturing and components landscape — the demand for servers, networking gear, power, and cooling that turns AI ambition into deployed hardware is not slowing.
For competitors and the entire components ecosystem, Jabil’s raised AI outlook is both a positive industry tailwind and a reminder that scale, diversification, and engineering capability increasingly separate the winners from the commoditized. The diversified model Dastoor keeps emphasizing is precisely what lets Jabil capture AI upside.
Bottom LineThis was another high-quality quarter from a company that has earned its premium through consistent execution, margin expansion, and disciplined capital returns.
The positive market reaction is best read as a verdict on the business: a solid beat-and-raise likely signals more gains ahead. For long-term investors, the combination of a Zacks Rank #2 (Buy), a top-tier industry, accelerating AI demand, and a guidance raise that now sits above consensus keeps the fundamental story firmly intact. Jabil (JBL - Free Report) remains one of the better-positioned names in the picks-and-shovels layer of the AI trade.
Disclosure: JBL is a current holding in the Zacks Headline Trader portfolio.
Jabil Inc (NYSE:JBL) shares moved higher after the electronics manufacturing services company reported fiscal third quarter financial results that exceeded Wall Street estimates and raised its full-year guidance.
For the quarter, the electronics and manufacturing services company posted net revenue of $8.8 billion, outpacing analyst expectations of $8.55 billion.
Jabil reported core diluted earnings per share of $3.16, beating the consensus estimate of $3.08 per share.
The quarterly outperformance was driven primarily by sustained momentum in technology sectors alongside stabilization in segments that had previously faced headwinds.
Jabil CEO Mike Dastoor noted that artificial intelligence infrastructure demand remains extremely strong, prompting a meaningful increase to the company's full-year AI-related revenue outlook.
“AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher,” Dastoor said. “At the same time, we continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in Automotive and Connected Living.”
Citing this robust demand and broad portfolio improvement, Jabil raised its full-year guidance for fiscal year 2026. The company now expects net revenue of $35 billion, a non-GAAP core operating margin of 5.8%, and core diluted earnings per share of $12.70. Adjusted free cash flow for the full year is now projected to exceed $1.4 billion.
For the upcoming fourth quarter of fiscal 2026, Jabil issued guidance projecting net revenue between $9.2 billion and $10.0 billion. Core diluted earnings per share for the fourth quarter are estimated to fall within the range of $3.80 to $4.20, while GAAP diluted earnings are expected between $3.24 and $3.64 per share.
Management indicated that the current momentum provides a favorable baseline as the company looks ahead toward the setup for fiscal year 2027.
Shares of Jabil added 2% at about $382 on Wednesday afternoon, paring gains of as much as 14% earlier in the session.
Jabil Inc. continues robust growth, with Q3 FY26 revenue up 11.8% to $8.75 billion, surpassing analyst expectations. AI infrastructure demand is driving a significant revenue outlook increase, offsetting weakness in connected living and auto segments. Profitability metrics are surging: adjusted EPS rose to $3.16, and EBITDA reached $679 million, with management raising full-year guidance.
Key Takeaways JBL raised its fiscal 2026 outlook after Q3 revenues rose 12% and core EPS increased to $3.16.Jabil expects AI-related revenues to hit about $13.6B in 2026, up from $9B in fiscal 2025.JBL is adding capacity in North Carolina, Memphis and India while keeping capex at 1.5%-2% of revenues. Jabil Inc. (JBL - Free Report) used its third-quarter fiscal 2026 earnings call to press a more ambitious AI growth case, while also lifting its full-year outlook. Management’s message centered less on the quarter’s beat and more on how capacity, customer wins and mix could drive the next leg of expansion.
The setup for fiscal 2027 was the clearest takeaway. Executives pointed to another year of AI-led growth, rising margins and disciplined capital spending, even as they acknowledged supply chain constraints and plant ramps still need to be managed carefully.
JBL Leans Harder Into AI DemandChief financial officer Gregory Hebard said third-quarter revenues rose to about $8.75 billion, up 12% year over year, while core earnings per share climbed to $3.16 from $2.55 a year earlier. Those results came in above the Zacks Consensus Estimate of $8.63 billion for revenues and $3.12 for EPS, reflecting a surprise of 1.4% and 1.3%, respectively.
Hebard stressed that the upside was broad-based across revenues, margin and free cash flow, rather than driven by one isolated pocket of strength. Core operating margin reached 5.8% in the quarter, with Intelligent Infrastructure standing out at 6.1%.
Chief executive officer Mike Dastoor built on that point, saying AI infrastructure demand remained extremely strong and that Jabil’s full-year AI-related revenue outlook is now materially above where management stood 90 days earlier.
Jabil Raises 2026 Targets AgainThe company raised its fiscal 2026 outlook to about $35 billion in revenues, roughly 5.8% core operating margin, about $12.7 in core EPS and more than $1.4 billion in adjusted free cash flow. That compares with the prior view for $34 billion in revenues and more than $1.3 billion in free cash flow.
For the fourth quarter, Hebard guided for revenues of $9.2-$10 billion and core EPS of $3.8-$4.2, with core operating margin around 6.4% at the midpoint. Management tied that outlook to continued AI program strength, customer ramp timing and improving conditions in automotive and some consumer-linked areas.
The message was not simply that estimates moved up. Jabil believes its diversified model is now producing faster growth, a better mix and stronger cash generation at the same time.
JBL Sees AI Growth Carrying Into 2027Dastoor’s most important forward-looking statement was that AI-related revenues should grow in fiscal 2027 at a percentage rate similar to fiscal 2026, but off a much larger base. AI-related revenues are now expected to reach about $13.6 billion this year, up from $9 billion in fiscal 2025.
He also said Jabil won a third hyperscale customer in the third quarter. In Q&A, Dastoor told a Goldman Sachs analyst that the new hyperscaler could contribute a few hundred million dollars in fiscal 2027 and scale to $1 billion and beyond in fiscal 2028.
That early 2027 signal came with limits. Dastoor cautioned that final full-year guidance will depend on component availability, mix, ramp timing, free cash flow priorities and portfolio choices, with fuller numbers coming at Jabil’s September investor briefing.
Jabil Expands Capacity Without Chasing an OEM ModelA JPMorgan analyst pressed management on the sharp step-up implied in fourth-quarter Intelligent Infrastructure revenues. Dastoor said about a couple hundred million dollars of finished goods slipped from the third quarter into the fourth quarter, while another roughly $300 million of upside is spread across the business rather than tied only to the third hyperscaler.
Capacity was another focal point. Hebard said Jabil is adding roughly 10% to its global footprint and still expects total capital spending to remain within 1.5% to 2% of revenues, reinforcing management’s asset-light framing.
Dastoor said new capacity is coming online in North Carolina, Memphis, India and other locations, with North Carolina expected to ramp through early calendar 2027. He also framed the proposed Adani partnership in India as a longer-term fiscal 2028 opportunity tied to AI racks, servers, networking and power infrastructure.
JBL Uses Q&A to Defend MarginsQuestions from Fox Advisors and Stifel centered on whether new plants and customer ramps could dilute profitability. Dastoor acknowledged some temporary ramp inefficiencies but said the mix is improving, utilization should rise through fiscal 2027, and higher-value offerings such as power, liquid cooling and silicon photonics are helping the margin profile.
He went further in Q&A than in the prepared remarks, saying he is confident Jabil can move to 6%-plus core operating margin in fiscal 2027. Hebard added that fourth-quarter seasonality tends to make the fourth quarter the strongest margin period, so investors should not read that run rate as the full shape of next year.
A Barclays analyst also asked about supply chain risk. Dastoor said shortages remain a factor in areas such as high-bandwidth memory and certain interconnect components, but he indicated those constraints are already reflected in management’s thinking for fiscal 2027.
Jabil Leaves Investors With a Growth BlueprintComing out of the call, management’s tone was confident but measured. The company highlighted strong AI demand, improving performance in automotive and Connected Living, and a model that it believes can support faster growth without a sharp jump in capital intensity.
The bigger point was strategic. Dastoor repeatedly framed Jabil as expanding through capabilities across compute, storage, networking, power and cooling, rather than moving toward a product-heavy OEM structure. That posture shaped both the fiscal 2027 commentary and the way management discussed new hyperscaler and India opportunities.
JBL’s Zacks Signals Still Favor the Bull CaseJBL currently carries a Zacks Rank #2 (Buy), along with a Value Score of C, Growth Score of B, Momentum Score of A and VGM Score of A. A Zacks Rank #1 (Strong Buy) or 2 stock paired with a Style Score of A or B offers the strongest near-term performance profile, while the VGM Score reflects a blended view of value, growth and momentum traits. You can see the complete list of today’s Zacks #1 Rank stocks here.
That combination suggests JBL’s strongest signal comes from momentum and its all-around VGM profile rather than pure value. Even so, the Zacks Rank can change as earnings estimate revisions adjust after the quarter, so the current setup is best viewed as a favorable but still fluid signal.
Key Takeaways Jabil posted fiscal Q3 core EPS of $3.16 and revenues of $8.75 billion, both above expectations.JBL's Intelligent Infrastructure revenues rose 21%, led by cloud, data center and networking demand.Jabil raised fiscal 2026 guidance and now sees AI-related revenues of about $13.6 billion. Jabil, Inc. (JBL - Free Report) third-quarter fiscal 2026 results surpassed expectations, driven by robust AI infrastructure demand and broad-based growth across its portfolio. Core earnings of $3.16 per share increased 23.9% year over year and topped the Zacks Consensus Estimate of $3.12 by 1.28%.
Net revenues rose 11.8% to $8.75 billion and exceeded the consensus mark of $8.63 billion by 1.39%. Intelligent Infrastructure remained the key growth engine, with segment revenues climbing 21% year over year.
Earnings and Revenue Top ExpectationsJabil reported third-quarter fiscal 2026 net revenues of $8.75 billion, up from $7.83 billion in the year-ago quarter. Revenues benefited from strong demand across multiple end markets, particularly AI-related cloud and data center infrastructure programs.
Core operating income increased to $504 million from $420 million a year ago. Core diluted earnings per share rose to $3.16 from $2.55, reflecting solid operating execution and margin expansion. On a GAAP basis, diluted earnings per share improved to $2.59 from $2.03.
Intelligent Infrastructure Leads GrowthThe Intelligent Infrastructure segment remained Jabil’s largest business, contributing 48% of total revenue during the quarter. Segment revenue increased 21% year over year to approximately $4.2 billion, supported by strong demand in capital equipment, cloud and data center infrastructure, as well as networking and communications.
Management noted that networking and communications revenue increased more than 50%, aided by a strong networking ramp in India. Segment core operating margin expanded 80 basis points year over year to 6.1%, highlighting favorable mix and execution.
Other Segments Deliver Steady ResultsRegulated Industries generated revenues of roughly $3.2 billion, representing 36% of total company sales. Revenues increased 4% year over year, driven primarily by stronger-than-expected automotive and transportation demand. Core operating margin improved 10 basis points to 5.6%.
Connected Living and Digital Commerce accounted for 16% of revenue. Sales rose 5% year over year to approximately $1.4 billion as consumer-related demand performed better than management’s cautious expectations. The segment delivered a core operating margin of 4.9%.
Margins and Cash Flow ImproveJabil’s profitability strengthened during the quarter. Core operating margin expanded to 5.8% from 5.4% in the prior-year period, supported by a favorable business mix and disciplined execution across operations. GAAP operating income increased to $445 million from $403 million a year earlier.
Cash generation also remained healthy. Net cash provided by operating activities totaled $535 million, while adjusted free cash flow reached $359 million after capital expenditures of $176 million. During the quarter, the company repurchased approximately $291 million of shares under its existing authorization.
AI Momentum Drives Outlook HigherManagement highlighted continued strength in AI infrastructure programs as a major growth catalyst. Jabil now expects AI-related revenue of approximately $13.6 billion in fiscal 2026, up from its prior forecast of $13.1 billion and significantly above the $9 billion generated in fiscal 2025. The company also secured a third hyperscale customer during the quarter, further strengthening its long-term growth prospects.
According to management, growth is being supported by capabilities across compute, storage, networking, optics, power, cooling and rack-level integration, while maintaining an asset-light operating model.
Fiscal 2026 Guidance RaisedEncouraged by strong third-quarter execution and healthy demand trends, Jabil raised its fiscal 2026 outlook. The company now expects fiscal 2026 revenues of approximately $35 billion, core operating margin of about 5.8%, core diluted earnings per share of roughly $12.70 and adjusted free cash flow exceeding $1.4 billion.
For the fourth quarter of fiscal 2026, management projects revenues between $9.2 billion and $10 billion and core diluted earnings per share of $3.80-$4.20. The outlook reflects continued momentum in Intelligent Infrastructure, particularly AI-related programs, as well as improving trends in automotive and other end markets.
JBL’s Zacks RankJBL currently carries a Zacks Rank #2 (Buy).
Other Stocks to ConsiderUbiquiti Inc. (UI - Free Report) currently carries a Zacks Rank #2. In the last reported quarter, it delivered an earnings surprise of 22.01%. It offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ubiquiti’s excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved Ubiquiti’s visibility for future demand and inventory management techniques.
Celestica Inc. (CLS - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 3.85%.
With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Celestica’s strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.
Sanmina Corporation (SANM - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, Sanmina delivered an earnings surprise of 30.58%.
Sanmina’s model spans design and engineering through assembly, test, logistics and after-market support, which lets customers work with one partner across the product lifecycle. Vertical integration helps control critical steps, shorten time to volume production and adjust production flows as program needs change.
Jabil Inc. (NYSE:JBL) on Wednesday reported better-than-expected fiscal third-quarter 2026 results and raised its full-year guidance.
The company reported adjusted earnings of $3.16 per share, topping the analyst consensus estimate of $3.10. Revenue increased 12% year over year to $8.75 billion, exceeding analysts' expectations of $8.61 billion.
For the fiscal fourth quarter, Jabil expects revenue of $9.20 billion to $10.00 billion, above the analyst consensus estimate of $8.97 billion. The company forecasts adjusted earnings of $3.80 to $4.20 per share, compared with analysts' expectations of $3.72.
For fiscal 2026, Jabil raised its revenue outlook to $35.00 billion from its previous forecast of $34.00 billion, ahead of the analyst consensus estimate of $34.24 billion. The company also increased its adjusted earnings outlook to $12.70 per share from $12.25, topping the consensus estimate of $12.38.
Jabil shares fell 0.3% to trade at $373.95 on Thursday.
These analysts made changes to their price targets on Jabil following earnings announcement.
Baird analyst Luke Junk maintained Jabil with an Outperform rating and raised the price target from $355 to $440. Raymond James analyst Melissa Fairbanks maintained the stock with a Strong Buy and raised the price target from $425 to $450. Stifel analyst Ruben Roy maintained the stock with a Buy and raised the price target from $430 to $460. Considering buying JBL stock? Here’s what analysts think:
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Jabil NYSE: JBL is perfectly positioned for the AI supercycle, and its stock price looks poised to continue rising for years. The thesis begins with Jabil’s position as a manufacturing specialist for mega tech companies. It designs, builds, and manages complex hardware manufacturing supply chains across industries, providing infrastructure, engineering, and logistics. The thesis is strengthened by catalysts such as AI, U.S. expansion, client utility, and the AI virtuous cycle.
Jabil Today
$371.04 -0.84 (-0.23%)
As of 06/18/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$189.60▼
$428.93Dividend Yield0.09%
P/E Ratio46.32
Price Target$453.67
The AI boom drives demand for servers, photonics, and liquid-cooling systems today, and for products from infrastructure to IoT-connected devices long into the future.
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Client utility is evident in its services and footprint, which includes more than 100 facilities in over 25 countries, enabling highly localized and resilient supply chain solutions.
Finally, there is the AI virtuous cycle. A virtuous cycle is when the output of new technology leads to improvements throughout the system and technological advancement.
As it stands, Jabil is implementing AI and automation throughout its operations, increasing efficiency and capabilities and advancing technology.
Jabil Sends Signal: Outperformance in Q1 and Robust GuidanceJabil had a solid fiscal Q3, with revenue growing nearly 12% to $8.8 billion, topping consensus estimates of $8.61 billion.
Growth was underpinned by datacenter and AI strength, which management says improved meaningfully, as well as by improvements in other previously underperforming segments, such as Automotive and Connected Living.
Margin news was also bullish. The company widened gross and net margins despite input cost pressures and increased R&D. Net margin rose to 3.1% and adjusted earnings per share (EPS) came in at $3.16, up 24% from last year and 6 cents better than expected. Free cash flow was also solid, up abour 22% year-to-date (YTD) and sufficient to support aggressive share repurchases.
The best news in the fiscal Q3 release was the guifdance, which indicated that strength would persist into the subsequent fiscal year. Executives set aggressive targets for fiscal Q4, well above the consensus, and lifted their forecast for the year. As it stands, revenue is forecast at $35 billion, up more than 15% year-over-year and 200 bps above MarketBeat’s reported consensus, with execs “feeling good” about the setup for next year.
Jabil’s Capital Return Keeps Institutions and Analysts InterestedJabil’s free cash flow is a significant factor as it enables aggressive share buybacks. The company targets using 80% of free cash flow for buybacks, which has amounted to over $800 million so far during its fiscal year, The trailing 12-month (TTM) activity reduced the count by 2.55% on average for the quarter and 3.85% for the YTD period, providing significant leverage for investors.
The only downside is that aggressive buyback activity is reflected on the balance sheet, revealing diminished cash and reduced equity at Q3’s end. The offset, however, is that investments, contract assets, and receivables all increased, indicating Q3’s cash reduction is no problem for shareholders.
Jabil’s analyst trends reveal a triple-strength sentiment tailwind is in place, including increased coverage, firming sentiment with an 82% Buy-side bias, and an uptrend in price targets. While consensus lags the market as of mid-June 2026, it is up more than 100% on a TTM basis, with recent targets pushing the high end. It stands at around $430, implying a more than 15% upside.
Institutional activity is likewise bullish. They own more than 90% of the stock and have been accumulating shares. The TTM balance is approximately $ 1.50 to $1 and may strengthen as the fiscal year-end approaches.
Jabil Pulls Back: Buy the Dip?Jabil’s stock price action surged ahead of the release, indicating an optimistic market anticipating strength. The caveat is that JBL’s price action peaked and may continue to pull back in June. Expected strength amounts to a sell-the-news event, and it will be several more weeks until Jabil’s leading clients begin reporting.
The likely outcome is that subsequent reports from Jabil and its clientele will affirm the robust outlook and trigger a trend-following signal in this market. Support targets include $370 and $355, either of which may trigger the signal.
Jabil’s biggest risk this year is its valuation. Trading at over 30x, JBL is at historically high levels, pricing in solid growth. This leaves the company open to executional risk as production ramps up and to stock price volatility. Any delays, missteps, or changes to fundamental outlook will be reflected in the stock's price. Additionally, a sluggish recovery in legacy markets may offset AI strengths.
Should You Invest $1,000 in Jabil Right Now?Before you consider Jabil, you'll want to hear this.
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Factory expansion reinforces company’s commitment to India, coinciding with recent Memorandum of Understanding (MoU) signing with Maharashtra government
PUNE, India--(BUSINESS WIRE)--Jabil Inc. (NYSE: JBL), a global leader in engineering, supply chain, and manufacturing solutions, today announced the opening of a new factory in Pune, marking a significant expansion of the company’s India manufacturing capacity.
Located in the Maharashtra Industrial Development Corporation (MIDC) industrial zone, this facility is the latest addition to Jabil’s India footprint, which has grown from 500,000 square feet to 1.2 million square feet over the past year. This ongoing growth has also increased Jabil’s regional headcount from 5,000 to almost 11,000 employees.
“Expanding in Pune reflects Jabil’s long-term commitment to India, especially as the country grows its position as a global manufacturing leader,” said Andy Priestley, Jabil’s Executive Vice President of Operations. “This new facility will help us bring together more skilled manufacturing talent and engineering capability to build the highest quality products with speed at scale. As we continue developing our people here in Pune, we’re strengthening Jabil’s ability to execute consistently in India.”
The expansion reflects Jabil’s confidence in Maharashtra as a strategic location for advanced manufacturing and comes on the heels of a MoU signing with the state government.
“Maharashtra continues to be a preferred destination for global manufacturers because of our skilled workforce, and commitment to enabling investment and growth,” said Devendra Fadnavis, Chief Minister of Maharashtra. “Jabil’s expansion in Pune is a welcome addition to the state’s manufacturing landscape and an encouraging example of how world-class companies are contributing to India’s industrial progress, job creation, and long-term economic development.”
“As the Make in India initiative continues to evolve, we remain committed to building a robust ecosystem that enables companies like Jabil to innovate, scale, and thrive in India,” said Ashwini Vaishnaw, Minister of Railways, Information and Broadcasting, and Electronics and Information Technology.
In India, Jabil serves a wide range of industries, such as telecommunications, AI cloud data centres, automotive, and digital commerce.
In 2025, Jabil was recognized with the Great Place To Work Certification in India; selected as one of India’s top 100 mid-sized companies to work for; and named as India’s Best Workplaces™ in Electronics 2025.
To learn about and apply for open positions at Jabil’s new Pune facility, visit jabil.com/careers.
About Jabil
At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, offering comprehensive engineering, supply chain, and manufacturing solutions. With 60 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customized solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the globe. Discover more at www.jabil.com.
Key Takeaways Jabil opened a new Pune facility to expand its manufacturing presence in India's fast-growing market.JBL increased India manufacturing space to 1.2 million square feet and nearly doubled staff to 11,000.Jabil's deal with Maharashtra Govt. and partnership with Adani Group support manufacturing and AI growth. Jabil Inc. (JBL - Free Report) has expanded its footprint in India by opening a new manufacturing facility in Pune, Maharashtra. This initiative marks a significant step in strengthening its position in one of the world’s fastest-growing manufacturing markets.
Jabil’s new factory significantly increases its production capacity in the country. Over the past year, the company increased its manufacturing space from 500,000 to 1.2 million square feet and nearly doubled its workforce to 11,000, reflecting strong demand and confidence in the Indian market.
Much of the decision to scale its operations in India is supported by the country’s favorable policies, improving infrastructure and skilled workforce, which make it an attractive hub for advanced manufacturing. Jabil’s recent agreement with the Maharashtra government is expected to drive faster expansion and strengthen regional partnerships.
In addition, Jabil recently partnered with Adani Group to build an artificial intelligence (AI) and data center infrastructure manufacturing platform. These strategic developments will likely enable Jabil to achieve strong long-term growth in the subcontinent.
How Are Competitors Faring?Jabil faces competition from Celestica Inc. (CLS - Free Report) and Sanmina Corporation (SANM - Free Report) . Celestica has strengthened its manufacturing capacity to meet growing demand in areas such as AI, cloud computing and data centers. The company is increasing production of hardware, including networking and server equipment. Celestica announced plans to expand its U.S. manufacturing footprint in Fort Worth to support rising demand for next-generation technology solutions.
Sanmina has enhanced its manufacturing capabilities to support growing demand across industrial, cloud and energy markets. The company is increasing production of advanced electronic and networking solutions. Sanmina expanded its footprint with a new facility in Houston to manufacture energy products such as transformers and switchgear for the U.S. market.
JBL’s Price Performance, Valuation and EstimatesJabil has rallied 80.4% in the past year compared with the industry’s growth of 126.1%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 26.47 forward earnings, lower than 27.7 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for Jabil for 2026 have moved up 0.5% to $12.36 per share over the past 60 days, while the same for 2027 has increased 2.4% to $14.69.
Image Source: Zacks Investment Research
Jabil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Micron Technology is a widely followed artificial intelligence (AI) infrastructure stock, as it supplies a critical component in the form of memory chips that go into a variety of AI accelerator chips.
The company's revenue and earnings have been growing rapidly, driven by an acute shortage of memory chips. Micron is poised to release its fiscal 2026 third-quarter results on June 24, and there is a solid chance it will crush expectations and deliver terrific guidance that could send the stock soaring.
However, there's another underrated AI infrastructure company that's going to release its fiscal 2026 Q3 earnings report on June 17 -- Jabil (JBL 0.16%). This AI stock has jumped 60% in 2026, and there is a good chance it will get a nice shot in the arm following its upcoming report. Let's look at the reasons why.
Image source: Getty Images.
AI is accelerating Jabil's growth When Jabil released its fiscal Q2 results in March, the company reported a 23% year-over-year increase in revenue to $8.3 billion. For comparison, Jabil's revenue was flat in the same quarter last year. What's more, the company's earnings per share jumped by 38% year over year to $2.69 in fiscal Q2.
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The company's revenue guidance for fiscal Q3 calls for $8.5 billion in revenue and $3.03 in earnings per share at the midpoint. That points toward a potential year-over-year increase of 9% in revenue and a 19% jump in earnings. However, Jabil could deliver stronger growth, as demand for its AI servers and racks is exceeding supply.
Jabil makes rack-scale servers, liquid-cooling systems, and power management solutions deployed in AI data centers. The company anticipates a 46% increase in its AI revenue this year to $13.1 billion, driven by red-hot demand for AI servers. In fact, Jabil increased its AI revenue outlook by $1 billion when it reported its results in March, and don't be surprised to see it do something similar once again.
I say this because Jabil management noted in its March earnings call that it is on track to add a third hyperscaler customer for its data center offerings. This could pave the way for a stronger-than-expected outlook, giving Jabil stock a nice boost following its quarterly report.
The stock's attractive valuation makes it a no-brainer buy Jabil stock trades at 52 times earnings following its impressive jump this year. However, the forward earnings multiple of 28 is significantly lower, suggesting that its earnings are poised to increase at a nice clip. We have already seen that Jabil's growth accelerated strongly last quarter, and this trend could continue in the long run, as the AI server market is anticipated to grow at an annual rate of 34% through 2030.
We have already seen Dell Technologies delivering phenomenal results recently due to booming AI server demand, and Jabil could follow suit. That's why investors can consider buying this AI infrastructure play before it steps on the gas.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Jabil?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Jabil (JBL - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $3.16 a share one day away from its upcoming earnings release on June 17, 2026.
Jabil's Earnings ESP sits at +1.12%, which, as explained above, is calculated by taking the percentage difference between the $3.16 Most Accurate Estimate and the Zacks Consensus Estimate of $3.12. JBL is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
JBL is just one of a large group of Computer and Technology stocks with a positive ESP figure. BILL Holdings (BILL - Free Report) is another qualifying stock you may want to consider.
BILL Holdings is a Zacks Rank #1 (Strong Buy) stock, and is getting ready to report earnings on August 26, 2026. BILL's Most Accurate Estimate sits at $0.71 a share 71 days from its next earnings release.
For BILL Holdings, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.67 is +5.97%.
JBL and BILL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
A strong stock as of late has been Jabil (JBL - Free Report) . Shares have been marching higher, with the stock up 13.9% over the past month. The stock hit a new 52-week high of $398.89 in the previous session. Jabil has gained 69.1% since the start of the year compared to the 20.2% move for the Zacks Computer and Technology sector and the 56.8% return for the Zacks Electronics - Manufacturing Services industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on March 18, 2026, Jabil reported EPS of $2.69 versus consensus estimate of $2.54.
For the current fiscal year, Jabil is expected to post earnings of $12.36 per share on $34.02 in revenues. This represents a 26.77% change in EPS on a 14.15% change in revenues. For the next fiscal year, the company is expected to earn $14.69 per share on $37.26 in revenues. This represents a year-over-year change of 18.85% and 9.53%, respectively.
Valuation MetricsThough Jabil has recently hit a 52-week high, what is next for Jabil? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Jabil has a Value Score of C. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 31.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 33.6X. On a trailing cash flow basis, the stock currently trades at 24.9X versus its peer group's average of 31.2X. Additionally, the stock has a PEG ratio of 1.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Jabil currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Jabil fits the bill. Thus, it seems as though Jabil shares could have a bit more room to run in the near term.
How Does JBL Stack Up to the Competition?Shares of JBL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Celestica, Inc. (CLS - Free Report) . CLS has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Celestica, Inc. beat our consensus estimate by 3.85%, and for the current fiscal year, CLS is expected to post earnings of $10.16 per share on revenue of $19.06 billion.
Shares of Celestica, Inc. have gained 17.7% over the past month, and currently trade at a forward P/E of 39.72X and a P/CF of 56.28X.
The Electronics - Manufacturing Services industry is in the top 27% of all the industries we have in our universe, so it looks like there are some nice tailwinds for JBL and CLS, even beyond their own solid fundamental situation.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Jabil (JBL - Free Report) Headquartered in St. Petersburg, FL, Jabil, Inc. is one of the largest global suppliers of electronic manufacturing services. The company offers electronics design, production, product management and after-market services to customers in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, storage and telecommunications industries.
JBL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. JBL has a Momentum Style Score of A, and shares are up 13.9% over the past four weeks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $12.36 per share. JBL also boasts an average earnings surprise of +7.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, JBL should be on investors' short list.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Jabil (JBL - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Jabil currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if JBL is a promising momentum pick, let's examine some Momentum Style elements to see if this electronics manufacturer holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For JBL, shares are up 8.94% over the past week while the Zacks Electronics - Manufacturing Services industry is up 7.16% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.85% compares favorably with the industry's 13.97% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Jabil have increased 44.83% over the past quarter, and have gained 113.27% in the last year. On the other hand, the S&P 500 has only moved 14.27% and 27.78%, respectively.
Investors should also pay attention to JBL's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. JBL is currently averaging 1,079,343 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with JBL.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost JBL's consensus estimate, increasing from $12.30 to $12.36 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that JBL is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Jabil on your short list.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Jabil (JBL - Free Report) . This company, which is in the Zacks Electronics - Manufacturing Services industry, shows potential for another earnings beat.
This electronics manufacturer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.34%.
For the last reported quarter, Jabil came out with earnings of $2.69 per share versus the Zacks Consensus Estimate of $2.54 per share, representing a surprise of 5.91%. For the previous quarter, the company was expected to post earnings of $2.72 per share and it actually produced earnings of $2.85 per share, delivering a surprise of 4.78%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Jabil. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Jabil has an Earnings ESP of +1.12% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on June 17, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways Jabil and Adani Group plan a vertically integrated AI and data center manufacturing platform in India.JBL aims to expand AI rack manufacturing for hyperscalers deploying high-density AI workloads.Jabil trades below the industry's forward P/E, while 2026 earnings estimates stayed unchanged. Jabil, Inc. (JBL - Free Report) recently announced that it has formed a strategic collaboration with Adani Group in India. The partnership aims to establish a world-class, vertically integrated AI data center infrastructure manufacturing platform in India. The focus is on manufacturing AI racks, and several supporting infrastructures are needed for AI data centers.
Jabil boasts strong expertise in engineering, manufacturing expertise, supply chain capabilities and hyperscale data center solutions. Combining this with Adani Group’s strength in Infrastructure, logistics and green energy assets and the rapidly expanding data center operations in India, is expected to give Jabil a competitive edge in the Asia Pacific region. The initiative targets a global market opportunity exceeding $3 trillion over the next seven years, driven by a rapid surge in AI-related investments by hyperscalers and large enterprises.
The AI racks will integrate AI GPU servers, CPUs, networking switches, storage, power distribution, liquid cooling, cabling and management hardware. Hyperscalers like Amazon, Google and Microsoft are deploying thousands of high-density racks to support AI workloads. By expanding its manufacturing capacity, Jabil aims to position itself as a reliable manufacturing partner for these hyperscalers.
How Are Competitors Faring?Jabil faces strong competition from Flex Ltd (FLEX - Free Report) and Sanmina Corporation (SANM - Free Report) in the AI infrastructure market. Sanmina is benefiting from rising demand for cloud and AI infrastructure programs, supported by its vertically integrated manufacturing model and broad global footprint. It is expanding its manufacturing footprint in Houston. The facilities will be used to develop leading-edge energy products supporting AI data centers. Sanmina’s Vertical integration helps control critical steps, shorten time to volume production and adjust production flows as program needs change. The approach is becoming more relevant as the company scales cloud and AI infrastructure programs.
Flex’s global manufacturing scale remains a key advantage. Its footprint supports regionalization by bringing manufacturing closer to end markets, reducing logistics risk and meeting evolving trade requirements. Management continues to position Flex for the AI era through integrated capabilities across compute integration, cooling and power, and it has cited AI-enabled systems to standardize processes and lift factory productivity.
JBL’s Price Performance, Valuation and EstimatesJabil has gained 113.3% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 154.3%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 27.48 forward earnings, lower than 29.04 for the industry but above its mean of 21.69.
Image Source: Zacks Investment Research
The company’s earnings estimates for 2026 have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Jabil carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
