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    Does Jabil’s Raised AI-Driven 2026 Outlook Alter the Bull Case for JBL?

    Simply Wall St·12/20/2025 11:16:22
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    • Earlier this week, Jabil Inc. reported first-quarter fiscal 2026 results, with sales rising to US$8,305 million and net income to US$146 million, alongside higher earnings per share and an increased full-year 2026 revenue outlook of US$32.40 billion.
    • The company highlighted especially strong momentum in its Intelligent Infrastructure and AI-related businesses, and pointed to the planned Hanley Energy acquisition as a way to deepen its role in data center power and energy systems.
    • We’ll now examine how Jabil’s raised 2026 guidance, underpinned by stronger AI-related demand, may influence the existing investment narrative.

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    Jabil Investment Narrative Recap

    To own Jabil, you need to believe it can convert AI-driven demand and Intelligent Infrastructure growth into durable earnings, while managing weakness in EV, renewables and consumer-facing businesses. The latest quarter and raised US$32.40 billion revenue outlook reinforce AI as the key near term catalyst, but they do not eliminate pressures in lagging segments or the risk that heavy AI and data center investment could squeeze cash flow if conditions change.

    The most relevant recent development is Jabil’s upgraded fiscal 2026 guidance, which lifts expected revenue from US$31.3 billion to US$32.4 billion, mainly tied to Intelligent Infrastructure and AI programs. That higher top line outlook, combined with investments in liquid cooling, data center capacity and the planned Hanley Energy acquisition, tightens the focus on whether AI related orders can offset softer Regulated Industries and Connected Living trends and support the company’s higher earnings ambitions.

    But while AI momentum is encouraging, investors also need to be aware of...

    Read the full narrative on Jabil (it's free!)

    Jabil's narrative projects $34.3 billion revenue and $1.3 billion earnings by 2028. This requires 6.4% yearly revenue growth and about a $723 million earnings increase from $577.0 million today.

    Uncover how Jabil's forecasts yield a $259.25 fair value, a 14% upside to its current price.

    Exploring Other Perspectives

    JBL 1-Year Stock Price Chart
    JBL 1-Year Stock Price Chart

    Two fair value estimates from the Simply Wall St Community span about US$259 to US$350, showing how far apart individual views on Jabil can be. You can weigh these against Jabil’s stronger AI driven outlook, which could help offset weakness in EV, renewables and consumer oriented segments over time.

    Explore 2 other fair value estimates on Jabil - why the stock might be worth just $259.25!

    Build Your Own Jabil Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.