The electronics manufacturing services (EMS) space primarily consists of companies that provide design, engineering and manufacturing services to electronics original equipment manufacturers (OEMs). The Zacks defined Electronics - Manufacturing Services industry is currently in the top 3% of the Zacks Industry Rank.

In the past year, the industry has provided an impressive 98.1% return, while its year-to-date return is an astonishing 105.9%. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the EMS industry to outperform the market over the next three to six months.

Here we recommend three global EMS leaders that are strategically positioned in the EMS landscape and have the ability to cater to the evolving AI (artificial intelligence) demands of business enterprises. These three companies are: Celestica Inc. (CLS Quick QuoteCLS - Free Report) , Jabil Inc. (JBL Quick QuoteJBL - Free Report) and Sanmina Corp. (SANM Quick QuoteSANM - Free Report) . 

These three are high-flying stocks on Wall Street in 2025. Despite this stiff northward journey, they still have more fireworks in store for 2026. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks year to date.

Image Source: Zacks Investment Research

Celestica Inc.

Zacks Rank #1 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. 

Increasing Focus on High-Value Markets

CLS’ focus on product diversification and increasing its presence in high-value markets is positive. Its 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 offering through innovation and strategic collaboration.

CEO Robert Mionis said “Our largest and fastest-growing market presence is within AI data centers, supporting high-performance networking and custom ASIC AI/ML compute platforms.”

Solid Guidance and Estimate Revisions

Backed by robust demand for networking products and growing AI-driven data center investments across industries, CLS presented a bullish outlook for 2025. Celestica currently anticipates 2025 revenues to be approximately $12.2 billion, up from the previous projection of $11.55 billion. Non-GAAP adjusted earnings are expected to be $5.90 per share, up from the prior view of $5.50. 

Celestica has an expected revenue and earnings growth rate of 31.4% and 39%, respectively, for next year. The Zacks Consensus Estimate for next-year’s earnings has improved 15.6% in the last 60 days. 

Jabil Inc. 

Zacks Rank #2 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. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. 

Effective Product Diversifications

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 $500 million 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. 

Management’s focus on improving working capital management and integration of sophisticated AI and ML (machine learning) capabilities to enhance the efficiency of its internal processes is a major tailwind.

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. 

The Johnson & Johnson deal is a major growth driver for Jabil. A large-scale portfolio of business sectors offers Jabil a high degree of resiliency during times of macroeconomic and geopolitical disruption.

Strong Guidance and Estimate Revisions

Management expects AI data center infrastructure, healthcare and advanced warehouse and retail automation to be the major growth drivers in 2026. For fiscal 2026, revenues are now projected at $32.4 billion. Non-GAAP earnings per share are expected to be $11.55. The company is expected to generate more than $1.3 billion in adjusted free cash flow.

Jabil has an expected revenue and earnings growth rate of 8.8% and 18.5%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 4.5% in the last 30 days. 

Sanmina Corp.

Zacks Rank #1 Sanmina is a global provider of electronics contract manufacturing services. SANM 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.

Impressive Demand in AI End Markets

Sanmina is benefiting from solid demand in the communications networks, cloud and AI infrastructure end markets. 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 act as a tailwind.

SANM’s vertically integrated manufacturing process brings several other advantages. This approach streamlines processes and lowers costs, enabling Sanmina to achieve greater economies of scale. SANM significantly reduce the time to market and for volume production. In-house management of all components from the initial phase to the final product ensures flexibility and responsiveness in operations. 

SANM can quickly reallocate its investments and change its production processes in alignment with evolving market dynamics. Vertical integration allows the company to easily develop customized solutions that cater to varied customer specifications operating in multiple sectors.

Positive Guidance and Estimate Revisions

For the first quarter of fiscal 2026, revenues are expected in the range of $2.05-$2.15 billion. Management estimates non-GAAP earnings per share in the band of $1.95-$2.25. Non-GAAP operating margin is expected in the band of 5.6-6.1%.

Sanmina has an expected revenue and earnings growth rate of 72.2% and 59.6%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 38.9% in the last 60 days.