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Flex vs. Jabil: Which EMS Stock Is the Better Buy for Now?
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Key Takeaways
FLEX's data center unit is its top growth engine, with revenues expected to climb at least 35% in fiscal 2026.
JBL's Intelligent Infrastructure surged on cloud and liquid cooling, lifting AI-revenue outlook to $12.1B.
JBL expects $1.3B in free cash flow in fiscal 2026, enabling share buybacks and continued investment.
The global electronics manufacturing services (“EMS”) industry is at a pivotal growth phase, driven by the expansion of AI data centers, the growth of consumer electronics and IoT markets, 5G uptake and automotive innovation, particularly electric vehicles. Per a Precedence Research report, the EMS industry is expected to witness a 6.95% compound annual growth rate from 2025 to 2034.
Flex Ltd ((FLEX - Free Report) ) and Jabil Inc ((JBL - Free Report) ) are two leading players in the EMS industry and their extensive portfolio of offerings positions them well to gain from the lucrative business opportunity.
With both stocks delivering strong performance this year, investors are now asking a more nuanced question: which of these EMS players offers the better risk-reward profile going forward?
To find out, let us dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for FLEX
Flex is positioned well for multi-year growth, supported by clear structural tailwinds and disciplined operational execution. Its data center business is now the most powerful growth engine. Management emphasized that AI is driving one of the biggest infrastructure build-outs and Flex is positioned at the center of it. Flex’s grid-to-chip approach is compelling as it integrates the product portfolio with advanced manufacturing capabilities and global scale.
FLEX is working with leading technology companies to plan, build and deliver the power, cooling and systems infrastructure. This will facilitate swifter and more reliable data center deployments at scale. A major catalyst in this acceleration is Flex’s introduction of a new AI infrastructure platform. Designed as a pre-engineered, scalable approach that integrates power, cooling and compute, the platform helps data center operators deploy up to 30% faster and lowers execution risk.
Flex also deepened its relationship with NVIDIA by partnering on next-gen 800-volt DC AI factories, which offer higher energy efficiency, reduced cooling costs and higher reliability. With revenues expected to rise at least 35% in the current fiscal year, the data center segment is delivering not just rapid expansion but also significant mix benefits.
Though Power and cloud markets are the main focus right now, Flex’s diversified portfolio continues to support stability and incremental upside. The Health Solutions segment is witnessing “steady” medical device demand, with expectations for improved momentum in medical equipment. Optical switch and SATCOM demand are driving revenues from the Communications and enterprise segment.
However, for the fiscal third quarter, FLEX expects Agility Solutions revenues to be slightly down to up low single digits, as continued cloud growth is offset by softer demand in consumer devices and lower expectations in Lifestyle. Challenges from the Ukraine facility shutdown and unfavorable forex movement are key concerns.
Moreover, a soft but stabilizing environment in renewables and auto will remain a concern, added management. Amid intense competition, the increasing dependence of the data center segment for top-line growth makes it highly sensitive to AI infrastructure spending.
The Case for Jabil
For Jabil, its diversifying business and expanding opportunities in the healthcare, cloud, data center, power and energy infrastructure businesses are growth drivers. The company’s Intelligent Infrastructure segment is fast becoming its growth engine.
Intelligent Infrastructure segment delivered $3.9 billion in revenues in the first quarter of fiscal 2026, up 54% year over year and constituting 46% of total revenues. Strength in cloud, data center and networking (mainly liquid cooling solutions) aided the segment’s performance. Driven by higher demand for liquid-cooled platforms and expansion of high-speed interconnects (Ethernet/Infiniband) to support AI workloads, JBL raised networking and comms revenue outlook by $300 million to $2.7 billion for fiscal 2026.
Cloud and DCI business is now expected to be $9.8 billion for fiscal 2026, up $600 million from the previous projection. This is driven by program wins with hyperscale customers in Mexico and momentum in the data center power business in Memphis, as well as a $200 million contribution from the Hanley Energy acquisition (expected to close in January 2026). The acquisition adds modular power distribution and energy systems capabilities for next-gen data centers. Overall, Jabil now projects AI-related revenues of $12.1 billion in fiscal 2026, representing 35% year-over-year growth, up from 25% projected earlier.
Health Care remains a steady long-term catalyst, given strength in drug delivery platforms (like GLP-1 and glucose monitors) and momentum across minimally invasive technologies and diagnostics. Management highlighted that it has good visibility into program ramps across chronic disease management, drug delivery and other regulated devices categories. It now anticipates the Regulated Industries segment to return to growth in the current fiscal and is expected to represent 40% of total revenues, with growth supported by healthcare, renewables and automotive gains.
Driven by momentum in automation, robotics and warehouse programs, management raised fiscal year revenue guidance by $100 million for its Connected Living & Digital Commerce segment. However, weakness in consumer-driven products remains a concern and despite incremental revenues, the segment is expected to report an 11% decline in revenues for fiscal 2026.
The company’s free cash flow was $1.3 billion in fiscal 2025 and it remains committed to generating more than $1.3 billion in adjusted free cash flow in fiscal 2026. This enables Jabil to both invest in growth while returning cash to shareholders, making it appealing to investors. Jabil repurchased $300 million worth of shares in the fiscal first quarter.
Price Performance and Valuation for FLEX & JBL
Over the past six months, FLEX and JBL have registered gains of 27.2% and 7.2%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, FLEX is trading at 18.22X, lower than JBL's 19.02X.
Image Source: Zacks Investment Research
How Do the Estimates Compare for FLEX & JBL?
Analysts have kept their earnings estimates unchanged for FLEX for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
There is an upward revision of 4.5% for JBL’s bottom line over the same time frame.
Image Source: Zacks Investment Research
FLEX or JBL: Which Is a Better Pick?
FLEX currently carries a Zacks Rank #3 (Hold), while JBL has a Zacks Rank #2 (Buy). In terms of Zacks Rank, JBL appears to be a better pick at the moment.
Image: Bigstock
Flex vs. Jabil: Which EMS Stock Is the Better Buy for Now?
Key Takeaways
The global electronics manufacturing services (“EMS”) industry is at a pivotal growth phase, driven by the expansion of AI data centers, the growth of consumer electronics and IoT markets, 5G uptake and automotive innovation, particularly electric vehicles. Per a Precedence Research report, the EMS industry is expected to witness a 6.95% compound annual growth rate from 2025 to 2034.
Flex Ltd ((FLEX - Free Report) ) and Jabil Inc ((JBL - Free Report) ) are two leading players in the EMS industry and their extensive portfolio of offerings positions them well to gain from the lucrative business opportunity.
With both stocks delivering strong performance this year, investors are now asking a more nuanced question: which of these EMS players offers the better risk-reward profile going forward?
To find out, let us dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for FLEX
Flex is positioned well for multi-year growth, supported by clear structural tailwinds and disciplined operational execution. Its data center business is now the most powerful growth engine. Management emphasized that AI is driving one of the biggest infrastructure build-outs and Flex is positioned at the center of it. Flex’s grid-to-chip approach is compelling as it integrates the product portfolio with advanced manufacturing capabilities and global scale.
FLEX is working with leading technology companies to plan, build and deliver the power, cooling and systems infrastructure. This will facilitate swifter and more reliable data center deployments at scale. A major catalyst in this acceleration is Flex’s introduction of a new AI infrastructure platform. Designed as a pre-engineered, scalable approach that integrates power, cooling and compute, the platform helps data center operators deploy up to 30% faster and lowers execution risk.
Flex also deepened its relationship with NVIDIA by partnering on next-gen 800-volt DC AI factories, which offer higher energy efficiency, reduced cooling costs and higher reliability. With revenues expected to rise at least 35% in the current fiscal year, the data center segment is delivering not just rapid expansion but also significant mix benefits.
Flex Ltd. Price, Consensus and EPS Surprise
Flex Ltd. price-consensus-eps-surprise-chart | Flex Ltd. Quote
Though Power and cloud markets are the main focus right now, Flex’s diversified portfolio continues to support stability and incremental upside. The Health Solutions segment is witnessing “steady” medical device demand, with expectations for improved momentum in medical equipment. Optical switch and SATCOM demand are driving revenues from the Communications and enterprise segment.
However, for the fiscal third quarter, FLEX expects Agility Solutions revenues to be slightly down to up low single digits, as continued cloud growth is offset by softer demand in consumer devices and lower expectations in Lifestyle. Challenges from the Ukraine facility shutdown and unfavorable forex movement are key concerns.
Moreover, a soft but stabilizing environment in renewables and auto will remain a concern, added management. Amid intense competition, the increasing dependence of the data center segment for top-line growth makes it highly sensitive to AI infrastructure spending.
The Case for Jabil
For Jabil, its diversifying business and expanding opportunities in the healthcare, cloud, data center, power and energy infrastructure businesses are growth drivers. The company’s Intelligent Infrastructure segment is fast becoming its growth engine.
Intelligent Infrastructure segment delivered $3.9 billion in revenues in the first quarter of fiscal 2026, up 54% year over year and constituting 46% of total revenues. Strength in cloud, data center and networking (mainly liquid cooling solutions) aided the segment’s performance. Driven by higher demand for liquid-cooled platforms and expansion of high-speed interconnects (Ethernet/Infiniband) to support AI workloads, JBL raised networking and comms revenue outlook by $300 million to $2.7 billion for fiscal 2026.
Cloud and DCI business is now expected to be $9.8 billion for fiscal 2026, up $600 million from the previous projection. This is driven by program wins with hyperscale customers in Mexico and momentum in the data center power business in Memphis, as well as a $200 million contribution from the Hanley Energy acquisition (expected to close in January 2026). The acquisition adds modular power distribution and energy systems capabilities for next-gen data centers. Overall, Jabil now projects AI-related revenues of $12.1 billion in fiscal 2026, representing 35% year-over-year growth, up from 25% projected earlier.
Jabil, Inc. Price, Consensus and EPS Surprise
Jabil, Inc. price-consensus-eps-surprise-chart | Jabil, Inc. Quote
Health Care remains a steady long-term catalyst, given strength in drug delivery platforms (like GLP-1 and glucose monitors) and momentum across minimally invasive technologies and diagnostics. Management highlighted that it has good visibility into program ramps across chronic disease management, drug delivery and other regulated devices categories. It now anticipates the Regulated Industries segment to return to growth in the current fiscal and is expected to represent 40% of total revenues, with growth supported by healthcare, renewables and automotive gains.
Driven by momentum in automation, robotics and warehouse programs, management raised fiscal year revenue guidance by $100 million for its Connected Living & Digital Commerce segment. However, weakness in consumer-driven products remains a concern and despite incremental revenues, the segment is expected to report an 11% decline in revenues for fiscal 2026.
The company’s free cash flow was $1.3 billion in fiscal 2025 and it remains committed to generating more than $1.3 billion in adjusted free cash flow in fiscal 2026. This enables Jabil to both invest in growth while returning cash to shareholders, making it appealing to investors. Jabil repurchased $300 million worth of shares in the fiscal first quarter.
Price Performance and Valuation for FLEX & JBL
Over the past six months, FLEX and JBL have registered gains of 27.2% and 7.2%, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, FLEX is trading at 18.22X, lower than JBL's 19.02X.
Image Source: Zacks Investment Research
How Do the Estimates Compare for FLEX & JBL?
Analysts have kept their earnings estimates unchanged for FLEX for the current fiscal year in the past 60 days.
Image Source: Zacks Investment Research
There is an upward revision of 4.5% for JBL’s bottom line over the same time frame.
Image Source: Zacks Investment Research
FLEX or JBL: Which Is a Better Pick?
FLEX currently carries a Zacks Rank #3 (Hold), while JBL has a Zacks Rank #2 (Buy). In terms of Zacks Rank, JBL appears to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.