Jabil's AI-Driven Growth: Surging Revenues and Strategic Expansion in the U.S.

Jabil Poised For Further Upside As AI Revenue Surges And Other Markets Recover: Analyst - Jabil (NYSE:JBL)

Bank of America Securities (BofA) analyst Ruplu Bhattacharya maintained Jabil JBL with a Buy and raised the price forecast from $225 to $245 on Friday. Bhattacharya noted that Jabil reported a strong fiscal third quarter of 2025, and the stock gained 42% year-to-date, prompting queries regarding further upside. According to the analyst, Jabil's fiscal 2026 and 2027 revenue estimates could prove conservative, driven by the company's strong AI revenues and a recovery in other markets. Also Read: Jabil Raises Sales And Profit Outlook, Announces $500 Million Investment To Expand Footprint The analyst has been conservative in his forward estimates. He modeled Jabil's AI revenues growing to $10.6 billion and $13.3 billion in fiscal years 2026 and 2027, from $8.5 billion in fiscal year 2025. Bhattacharya's projections assumed 25% year-over-year (Y/Y) growth for these two years, which is meaningfully lower than the 50+ Y/Y growth in fiscal 2025. While the analyst modeled AI revenues growing by $2.1 billion and $2.7 billion in fiscal 2026 and 2027, he modeled total Jabil revenue increasing by $1.7 billion and $2.8 billion. For fiscal 2026, he assumed the remaining businesses' net decline Y/Y, and for fiscal 2027, he assumed the remaining businesses' remain flat Y/Y, which could prove conservative. His estimates for fiscal years 2026 and 2027 revenue and EPS are higher versus the Street. Revenue from Amazon.Com Inc AMZN remains strong, and there is a significant opportunity for optical transceivers and AI-related switching, as per Bhattacharya, which is driving potential upside for Jabil. According to the analyst, Jabil manufactures for more than a dozen end markets and can benefit from new program ramps in healthcare (pharma and med devices) and continued strong revenues in Digital Commerce. Bhattacharya said that every $1 billion in higher revenue annually, at a mid-single-digit operating margin, can drive $0.40 higher EPS. The analyst noted that the Street has been conservative in modeling earnings. Fiscal 2025 consensus EPS has increased about $1.00 since the fiscal fourth-quarter 2024 earnings call. Jabil trades at 18 times Bhattacharya's calendar 2026E EPS, a discount to peer Celestica, which trades at 22 times calendar 2026 Street EPS, even though both companies can have similar EPS growth in fiscal 2026. The analyst justified the valuation by citing Jabil's lower operating margin compared to Celestica, Inc. CLS. Price Action: JBL shares are trading higher by 0.78% to $206.26 at last check Friday. Read Next: SK Hynix To Supply Next-Gen Memory For Big Tech's AI Push, Prioritizes Nvidia Amid Supply Crunch Photo via Shutterstock JBLJabil Inc$203.74-0.45%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum92.08Growth22.70Quality75.56Value4.54Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$209.47-1.44%CLSCelestica Inc$138.471.63%Market News and Data brought to you by Benzinga APIs

Jabil Raises Sales And Profit Outlook, Announces $500 Million Investment To Expand Footprint - Jabil (NYSE:JBL)

Jabil Inc. JBL stock on Tuesday gained after reporting third-quarter results that exceeded analyst expectations for both earnings per share and sales. This positive performance was further bolstered by an optimistic outlook for the upcoming quarter and fiscal year 2025, and a significant investment announcement for expanding its footprint in the Southeast United States, specifically to support cloud and AI data center infrastructure customers. The company reported quarterly adjusted earnings per share of $2.55, beating the analyst consensus estimate of $2.31. Quarterly sales of $7.83 billion outpaced the analyst consensus estimate of $7.06 billion. Also Read: SoFi Technologies, Jabil And A Financial Stock On CNBC's 'Final Trades' Regulated Industries revenue grew at a flat rate year over year (Y/Y), Intelligent Infrastructure revenue grew by 51% Y/Y, and Connected Living & Digital Commerce revenue increased by 7% Y/Y. The company exited the quarter with cash and equivalents worth $1.52 billion. Jabil's core EBITDA as of quarter end was $571 million, up from $513 million a year ago. CEO Mike Dastoor said its Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand. Despite softness in areas like EVs, Renewables, and 5G, the diversified portfolio helped it track toward record core earnings per share. Outlook For the fourth quarter, the company projects net revenues of $7.10 billion to $7.80 billion versus a consensus of $7.19 billion. The company anticipates an adjusted EPS of $2.64-$3.04 versus a consensus of $2.74. In the fourth quarter, the company anticipates segment revenues of: $2.9 billion for Regulated Industries, $3.3 billion for Intelligent Infrastructure, and $1.3 billion for Connected Living & Digital Commerce. For fiscal 2025, Jabil expects revenues to be $29.0 billion versus a consensus of $28.0 billion, up from the prior view of $27.9 billion. The company anticipates an adjusted EPS $9.33 versus a consensus of $8.97, up from the previous view of $8.95. New Investment Jabil announced an investment of approximately $500 million over the next several years to expand its footprint in the Southeast United States. This expansion aims to support cloud and AI data center infrastructure customers by enabling new large-scale manufacturing capabilities, capital investments, and workforce development. The company is in the final stages of site selection, with operations expected to begin by mid-2026. This move is driven by the increasing demand for hardware to power AI innovation domestically, which Jabil views as crucial for national security. Price Action: JBL shares are trading higher by 3.15% to $186.51 premarket at last check Tuesday. Read Next: Caterpillar's Energy, Transportation Unit Will Power Next Growth Wave: Analyst Photo via Shutterstock JBLJabil Inc$187.003.42%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum90.34Growth22.85Quality61.03Value6.61Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Jabil AI Revenue Jumps 51 Percent | The Motley Fool

Jabil Inc. (JBL 11.79%) reported Q3 FY2025 results on June 17, 2025. AI-driven Intelligent Infrastructure revenue surged approximately 51% year over year to $3.4 billion. The following analysis provides distinct insights into strategy, capital allocation, and future growth scaffolding based directly on management's commentary and disclosures. Management noted their multi-site U.S. manufacturing base now exceeds 30 locations. The company announced a new Southeastern U.S. site, with a planned $500 million investment over several years, to support surging AI data center infrastructure demand. "Given this momentum in our project, our AI-related revenue will reach approximately $8.5 billion this fiscal year, a 50% plus increase year on year. To support this growth, I'm excited to share that this morning we announced we will be opening a new site in the Southeastern U.S. to help fulfill the ongoing increase in AI data center infrastructure demand. As part of this plan, we expect to invest $500 million over the next several years to expand our U.S. footprint." -- Mike Dastoor, CEO This expansion positions Jabil to capture incremental hyperscaler and AI ecosystem opportunities while reinforcing its competitive advantage in localized, resilient manufacturing. Company-wide capacity utilization remains below normal at 75%, versus the historical 85%-86% range due to geographic mismatches, as discussed during the earnings call. Segmental mix, with dilutive 5G offsetting higher-margin capital equipment and networking, influences Jabil's enterprise-level profitability trajectory. "Today, we find ourselves with a little bit of underutilized capacity. Our normal capacity utilization is in the 85-86% range. Today, we're still at the 75% range. Even with the explosive growth that you see in the AI world, underutilized capacity still exists because there's a mismatch in geographies. The AI growth is all in the U.S. while the underutilized capacity is in countries outside of the U.S. So I do expect 20 bps to come back from better utilization, and I'm not suggesting that would happen next year." -- Mike Dastoor, CEO This utilization shortfall highlights ongoing optimization needs and suggests further margin expansion is contingent on both geographic demand alignment and improved segment mix. Jabil executed $339 million in share repurchases during the quarter and is on track to complete its current $1 billion authorization in Q4. The company's free cash flow for the year is projected to exceed $1.2 billion, supporting continued buybacks and selective M&A. "Returning 80% of our free cash flow to buybacks, we're committed to that. We do see our current $1 billion share authorization program being completed in Q4 and our typical cadence of new authorizations and continuing that type of policy. We typically announce between July and September. So more to come on that in the coming months." -- Greg Hebard, CFO This capital allocation approach offers both downside protection and upside optionality as Jabil retains flexibility for small, accretive acquisitions while prioritizing ongoing share repurchases in a high free cash flow regime. Full-year core operating margins are expected at 5.4%. The new U.S. site will not materially impact financials before FY2027, and management plans to share detailed FY2026 guidance, including specific core operating margin, core EPS, and adjusted free cash flow targets, at the September investor briefing. No other explicit multi-year quantitative forecasts or strategic milestones beyond what is given appear in the transcript.

Why AI Stock Jabil Crushed the Market on Tuesday | The Motley Fool

The intense take-up of artificial intelligence (AI) has been a powerful motor driving contract electronics manufacturer Jabil (JBL 8.62%) lately. It also helped power the company's latest quarterly results, which were published Tuesday morning. Investors very much liked what they saw in the numbers, and rewarded the company by boosting its share price nearly 9% higher on the day. Jabil's fiscal third quarter of 2025 results were posted before market open, and they set the tone for the stock that day. Revenue rose by a sturdy 16% year over year to just over $7.8 billion, handily beating the average analyst estimate of $7 billion. The story was similar on the bottom line, with "core" -- i.e. non-GAAP (generally accepted accounting principles) adjusted -- net income rising 21% to $279 million, or $2.55 per share. The latter number was well above the consensus $2.29 projected by analysts tracking Jabil stock. Management attributed the double-digit gains to growth in expanding end markets, such as data centers infrastructure, and cloud computing. Its intelligent infrastructure segment did particularly well, thanks greatly to intensifying demand for artificial intelligence (AI) solutions. Meanwhile, Jabil announced it is to invest roughly $500 million to expand its manufacturing footprint in the Southwest U.S., specifically targeting the AI and cloud businesses. The company wrote that this will "enable new large-scale manufacturing capabilities, capital investments, and workforce development." Such facilities should come onstream in mid-2026, it added. Jabil also proffered guidance for both its current quarter and the entirety of fiscal 2025. For the latter period, it's anticipating revenue of $29 billion, filtering down into adjusted net income of $9.33 per share. Those figures in fiscal 2024 were a respective $28.9 billion, and $8.49. Even with that post-earnings pop, Jabil remains a somewhat under-the-radar play on the explosion of AI. As such, I'd flag it as a sleeper stock in that pack, and one well worth consideration as a buy.

3 Key Factors That Make Jabil a Top AI Infrastructure Play in 2025 | Investing.com UK

Jabil (NYSE:JBL) has emerged as a standout performer in the electronics manufacturing sector, with shares surging nearly 9% in a single trading session following exceptional third-quarter 2025 results. The contract electronics manufacturer has delivered impressive returns, posting a remarkable 42.48% year-to-date gain and an outstanding 62.65% one-year return, significantly outpacing the S&P 500's modest 2.11% and 9.46% respective gains. Trading at $204.83 with a market capitalization of $21.987 billion, Jabil has positioned itself as a critical beneficiary of the artificial intelligence revolution and cloud computing expansion. The most significant catalyst behind Jabil's recent stock surge is the company's strategic positioning in the artificial intelligence and data center infrastructure markets. Third-quarter fiscal 2025 revenue jumped an impressive 16% year-over-year to $7.83 billion, substantially beating analyst estimates of $7.06 billion. This robust growth stems directly from what CEO Mike Dastoor described as "accelerating AI-driven demand" in the company's intelligent infrastructure segment. The proliferation of AI technology across industries has created unprecedented demand for data centers capable of supporting vast computing requirements and complex AI workloads. Companies rushing to implement AI solutions in their operations have dramatically increased their need for sophisticated data center infrastructure, positioning Jabil perfectly to capitalize on this trend. The manufacturer's expertise in automation, robotics, and process optimization has made it an essential partner for organizations building AI-capable computing infrastructure. This positioning as a critical supplier in the AI ecosystem has transformed Jabil from a traditional electronics manufacturer into a key enabler of the artificial intelligence revolution, driving both revenue growth and investor confidence. The company's intelligent infrastructure segment has become what management calls "a critical growth engine," with demand showing no signs of slowing. Jabil's announcement of a substantial $500 million investment in U.S. manufacturing expansion represents the second major factor propelling the stock higher. This strategic initiative, focused on the Southeastern United States, specifically targets cloud and AI data center infrastructure customers over the next several years. The investment will drive development of new large-scale manufacturing capabilities, capital expenditures, and workforce development initiatives, with the new facility expected to be operational by mid-2026. This expansion demonstrates management's confidence in sustained demand growth and positions the company to capture an even larger share of the expanding AI infrastructure market. The timing of this investment aligns perfectly with broader trends toward reshoring manufacturing capabilities and reducing supply chain vulnerabilities. By expanding its U.S. footprint, Jabil strengthens its competitive position with domestic customers while reducing geopolitical risks associated with overseas manufacturing. The company already operates 30 facilities across the United States, leveraging established strengths in automation and process optimization, making this expansion a natural evolution of its existing capabilities rather than a risky venture into uncharted territory. This strategic expansion also complements Jabil's recent acquisition of Mikros Technologies, a New Hampshire-based leader in liquid cooling and thermal management solutions. The acquisition enhances Jabil's capabilities in serving AI data centers, energy storage systems, and semiconductor testing markets. Together, these initiatives create a comprehensive strategy for capturing growth in high-value, high-margin segments of the electronics manufacturing market, providing investors with confidence in the company's long-term growth trajectory. The third driving factor behind Jabil's stock surge is the company's exceptional financial execution and optimistic forward guidance. Third-quarter adjusted earnings per share of $2.55 significantly exceeded analyst expectations of $2.31, representing a robust 21% increase in core net income to $279 million. This strong bottom-line performance demonstrates management's ability to convert revenue growth into profitable results, a critical factor for sustained stock appreciation. The company's profit margin of 2.02% and impressive return on equity of 32.39% highlight efficient capital allocation and operational excellence. Management's raised full-year guidance provides additional fuel for investor optimism. The company now expects fiscal 2025 revenue of $29 billion, up from the previous forecast of $27.9 billion, while raising adjusted profit per share guidance to $9.33 from $8.95. This upward revision reflects management's confidence in sustained demand across key markets and their ability to execute on growth opportunities. The guidance increase, combined with the strong third-quarter results, validates the investment thesis that Jabil is successfully capitalizing on structural shifts in technology infrastructure. The company's financial strength is further evidenced by its healthy balance sheet, featuring $1.52 billion in total cash and strong free cash flow generation of $1.41 billion. This financial flexibility provides the resources necessary to fund the ambitious expansion plans while maintaining operational stability. With analyst price targets ranging from $155 to $230 and an average target of $205.26 closely aligned with current trading levels, the market appears to be efficiently pricing in the company's improved fundamentals and growth prospects. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.