We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy Jabil (JBL) Stock as AI Infrastructure Demand Fuels Strong Q4 Results?
Key Takeaways
Jabil's Q4 revenue surged nearly 29% as AI infrastructure demand drove exceptional growth.
Management expects fiscal 2027 revenue to rise 24% and adjusted EPS to jump 34%.
Jabil's strong growth and reasonable valuation keep the stock attractive despite its recent run.
Along with Micron Technology (MU - Free Report) ), electronics manufacturer Jabil (JBL - Free Report) ) was a tech highlight of this week’s earnings lineup, delivering impressive fiscal fourth-quarter results as booming demand for artificial intelligence infrastructure continues to fuel rapid growth.
Adding to the appeal, Jabil’s Zacks Electronics-Manufacturing Services Industry currently ranks in the top 11% of more than 240 Zacks industries, highlighting a favorable backdrop for the company and its peers.
That said, let’s take a look at Jabil’s Q4 results and guidance, along with its valuation, to see if now is still a good time to buy JBL or if much of the upside is already priced into the stock.
Jabil’s Strong Q4 Results
Jabil posted Q4 adjusted earnings of $4.40 per share, up roughly 34% from $3.29 a year ago and 8% above the Zacks EPS Consensus of $4.06.
Revenue climbed 28.6% year over year to $10.62 billion, comfortably surpassing expectations of $9.62 billion by nearly 10%. The standout was Jabil's Intelligent Infrastructure business, where revenue surged 56% to approximately $5.8 billion as AI-related demand accelerated beyond management's already-strong expectations.
Jabil also benefited from better-than-expected performance in automotive and transportation, as well as renewable and energy infrastructure products, broadening Q4 strength beyond AI alone.
Image Source: Zacks Investment Research
AI Growth Should Remain a Major Catalyst
Management expects the momentum to continue in fiscal 2027, projecting revenue to increase 24% to $44.5 billion, while adjusted EPS is forecast to jump 34% to $17.55. Jabil also expects its core operating margin to expand 30 basis points to 6.1%.
This comes as Jabil's expanding AI and data-center exposure is placing it alongside electronics manufacturing leaders such as Celestica (CLS - Free Report) ) and Sanmina (SANM - Free Report) ), which are competing for many of the same advanced electronics and infrastructure manufacturing opportunities.
JBL Performance & Valuation Comparison
Year to date, Jabil stock is up 30%, roughly on par with its Zacks Electronics-Manufacturing Services Industry and ahead of the S&P 500 and Nasdaq’s gains of 11% and 16%, respectively.
Despite outperforming the broader stock market indexes over the last two years as well, JBL’s 150% return has trailed its Zacks industry’s 251% gain, with Sanmina stock up more than 230% during this period and Celestica shares skyrocketing over 600%.
Image Source: Zacks Investment Research
At current levels, JBL is trading at a reasonable 19X forward earnings multiple, offering a modest discount to the S&P 500’s 21X and its Zacks industry average of 24X.
JBL’s strong earnings outlook for FY27 certainly adds to the appeal, with Celestica shares trading at a much richer 32X forward earnings, although Sanmina stands out at just 15X.
Image Source: Zacks Investment Research
Bottom Line
Jabil's Q4 results reinforced its compelling growth story, with AI infrastructure supporting accelerating revenue and earnings growth.
Still, investors may not need to aggressively chase JBL following its substantial run over the last year. For now, Jabil stock lands a Zacks Rank #3 (Hold), suggesting better buying opportunities could still be ahead.
View the Zacks #1 Rank List
Image: Shutterstock
Buy Jabil (JBL) Stock as AI Infrastructure Demand Fuels Strong Q4 Results?
Key Takeaways
Along with Micron Technology (MU - Free Report) ), electronics manufacturer Jabil (JBL - Free Report) ) was a tech highlight of this week’s earnings lineup, delivering impressive fiscal fourth-quarter results as booming demand for artificial intelligence infrastructure continues to fuel rapid growth.
Adding to the appeal, Jabil’s Zacks Electronics-Manufacturing Services Industry currently ranks in the top 11% of more than 240 Zacks industries, highlighting a favorable backdrop for the company and its peers.
That said, let’s take a look at Jabil’s Q4 results and guidance, along with its valuation, to see if now is still a good time to buy JBL or if much of the upside is already priced into the stock.
Jabil’s Strong Q4 Results
Jabil posted Q4 adjusted earnings of $4.40 per share, up roughly 34% from $3.29 a year ago and 8% above the Zacks EPS Consensus of $4.06.
Revenue climbed 28.6% year over year to $10.62 billion, comfortably surpassing expectations of $9.62 billion by nearly 10%. The standout was Jabil's Intelligent Infrastructure business, where revenue surged 56% to approximately $5.8 billion as AI-related demand accelerated beyond management's already-strong expectations.
Jabil also benefited from better-than-expected performance in automotive and transportation, as well as renewable and energy infrastructure products, broadening Q4 strength beyond AI alone.
Image Source: Zacks Investment Research
AI Growth Should Remain a Major Catalyst
Management expects the momentum to continue in fiscal 2027, projecting revenue to increase 24% to $44.5 billion, while adjusted EPS is forecast to jump 34% to $17.55. Jabil also expects its core operating margin to expand 30 basis points to 6.1%.
This comes as Jabil's expanding AI and data-center exposure is placing it alongside electronics manufacturing leaders such as Celestica (CLS - Free Report) ) and Sanmina (SANM - Free Report) ), which are competing for many of the same advanced electronics and infrastructure manufacturing opportunities.
JBL Performance & Valuation Comparison
Year to date, Jabil stock is up 30%, roughly on par with its Zacks Electronics-Manufacturing Services Industry and ahead of the S&P 500 and Nasdaq’s gains of 11% and 16%, respectively.
Despite outperforming the broader stock market indexes over the last two years as well, JBL’s 150% return has trailed its Zacks industry’s 251% gain, with Sanmina stock up more than 230% during this period and Celestica shares skyrocketing over 600%.
Image Source: Zacks Investment Research
At current levels, JBL is trading at a reasonable 19X forward earnings multiple, offering a modest discount to the S&P 500’s 21X and its Zacks industry average of 24X.
JBL’s strong earnings outlook for FY27 certainly adds to the appeal, with Celestica shares trading at a much richer 32X forward earnings, although Sanmina stands out at just 15X.
Image Source: Zacks Investment Research
Bottom Line
Jabil's Q4 results reinforced its compelling growth story, with AI infrastructure supporting accelerating revenue and earnings growth.
Still, investors may not need to aggressively chase JBL following its substantial run over the last year. For now, Jabil stock lands a Zacks Rank #3 (Hold), suggesting better buying opportunities could still be ahead.