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JBL Gains From Strength in Intelligent Infrastructure: Will it Last?
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Key Takeaways
Jabil's Intelligent Infrastructure revenues rose 52% to $4B on AI and hyperscale demand.
JBL sees FY26 Intelligent Infrastructure revenues reaching $16.5B, up 34% year over year.
Flex and Celestica posted strong AI networking and cloud infrastructure growth in fiscal 2026.
Jabil, Inc. (JBL - Free Report) is benefiting from strong momentum in its Intelligent Infrastructure segment, driven primarily by accelerating AI-related investments and robust hyperscale data center demand. In the second quarter of fiscal 2026, revenues from the segment surged 52% year over year to $4 billion, fueled by broad-based strength across cloud & data center infrastructure, networking & communications, and capital equipment end markets.
The cloud & data center infrastructure portfolio remains the biggest growth engine. It is witnessing strong demand for AI server racks, liquid cooling systems, power infrastructure solutions and advanced compute integration services as hyperscalers continue expanding AI-data center capacity.
Increasing deployment of high-speed AI networking infrastructure, including Ethernet and InfiniBand interconnect solutions, is driving growth in the Networking & Communications vertical. It is seeing robust traction across advanced AI networking programs in India. Healthy demand for automated test equipment is driving demand in the Capital Equipment vertical.
Moreover, the company continues to aggressively expand its manufacturing capabilities to capitalize on these high-growth opportunities. Jabil’s competitive advantage comes from offering integrated AI infrastructure solutions, including compute, networking, power distribution and advanced cooling systems. It now expects Intelligent Infrastructure revenues to reach approximately $16.5 billion in fiscal 2026, representing 34% year-over-year growth.
How Are Competitors Faring?
Jabil faces stiff competition from other industry leaders like Flex Ltd. (FLEX - Free Report) and Celestica Inc. (CLS - Free Report) . Flex continues to deepen exposure to the data center market through the Cloud and Power Infrastructure segment, which consolidated its data center power and cloud activities. In fiscal 2026, CPI revenues rose 38% to $6.6 billion, with Power growing 61% and Cloud & Cooling up 29%. Flex expects demand to remain driven by AI deployment and has guided 65% to 75% CPI revenue growth for fiscal 2027, with growth weighted to the second half as capacity comes online.
Celestica generated revenues of $3.24 billion from the Connectivity & Cloud Solutions (“CCS”) segment in the first quarter of 2026, up 76% year over year. The company’s growth was driven by solid traction across several verticals. Enterprise revenues within Celestica’s CCS segment grew 101% year over year, backed by next-generation AI/ML compute program ramps, hyperscaler deployments and storage platform growth. In the CCS segment, revenues from the Communications increased 69% year over year. The growth is driven by 800G networking switch ramps, hyperscale networking demand and ongoing 400G program strength.
Going by the price/earnings ratio, the company’s shares currently trade at 27.54 forward earnings, lower than 27.7 for the industry but above its mean of 21.49.
Image Source: Zacks Investment Research
The company’s earnings estimates have remained unchanged over the past 60 days.
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JBL Gains From Strength in Intelligent Infrastructure: Will it Last?
Key Takeaways
Jabil, Inc. (JBL - Free Report) is benefiting from strong momentum in its Intelligent Infrastructure segment, driven primarily by accelerating AI-related investments and robust hyperscale data center demand. In the second quarter of fiscal 2026, revenues from the segment surged 52% year over year to $4 billion, fueled by broad-based strength across cloud & data center infrastructure, networking & communications, and capital equipment end markets.
The cloud & data center infrastructure portfolio remains the biggest growth engine. It is witnessing strong demand for AI server racks, liquid cooling systems, power infrastructure solutions and advanced compute integration services as hyperscalers continue expanding AI-data center capacity.
Increasing deployment of high-speed AI networking infrastructure, including Ethernet and InfiniBand interconnect solutions, is driving growth in the Networking & Communications vertical. It is seeing robust traction across advanced AI networking programs in India. Healthy demand for automated test equipment is driving demand in the Capital Equipment vertical.
Moreover, the company continues to aggressively expand its manufacturing capabilities to capitalize on these high-growth opportunities. Jabil’s competitive advantage comes from offering integrated AI infrastructure solutions, including compute, networking, power distribution and advanced cooling systems. It now expects Intelligent Infrastructure revenues to reach approximately $16.5 billion in fiscal 2026, representing 34% year-over-year growth.
How Are Competitors Faring?
Jabil faces stiff competition from other industry leaders like Flex Ltd. (FLEX - Free Report) and Celestica Inc. (CLS - Free Report) . Flex continues to deepen exposure to the data center market through the Cloud and Power Infrastructure segment, which consolidated its data center power and cloud activities. In fiscal 2026, CPI revenues rose 38% to $6.6 billion, with Power growing 61% and Cloud & Cooling up 29%. Flex expects demand to remain driven by AI deployment and has guided 65% to 75% CPI revenue growth for fiscal 2027, with growth weighted to the second half as capacity comes online.
Celestica generated revenues of $3.24 billion from the Connectivity & Cloud Solutions (“CCS”) segment in the first quarter of 2026, up 76% year over year. The company’s growth was driven by solid traction across several verticals. Enterprise revenues within Celestica’s CCS segment grew 101% year over year, backed by next-generation AI/ML compute program ramps, hyperscaler deployments and storage platform growth. In the CCS segment, revenues from the Communications increased 69% year over year. The growth is driven by 800G networking switch ramps, hyperscale networking demand and ongoing 400G program strength.
JBL’s Price Performance, Valuation and Estimates
Jabil has gained 124.8% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 152.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 27.54 forward earnings, lower than 27.7 for the industry but above its mean of 21.49.
Image Source: Zacks Investment Research
The company’s earnings estimates 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.