Jabil's Diverse Portfolio Fuels Revenue Growth: A Sign of More Upside?

Jabil, Inc. JBL is benefiting from its comprehensive and diverse product offerings. With a broad portfolio, the company boasts a strong presence across several end markets, such as AI data center infrastructure, capital equipment, warehouse automation, 5G wireless and cloud computing, renewable energy and automotive. A large-scale portfolio of business sectors offers Jabil a high degree of resiliency during times of macroeconomic and geopolitical disruption.

The company has taken a multi-dimensional approach to expanding its market reach, which involves strategic collaborations with industry leaders, acquisitions and organic growth. Recently, Jabil has formed a collaboration with Axiado Corporation, an AI-native hardware-anchored platform security and system management solutions provider. The partnership aims to develop leading-edge AI-driven security systems for AMD Servers.

It also recently introduced the J-422G server, which is engineered to match the high efficiency and performance requirements of AI, machine learning, high-performance computing and large language models. The company is also actively venturing into the renewable energy market, with a focus on inverters, battery modules and smart grid technologies.

The company is also working on RF power systems and gas-delivery sensors to tap into the growing semiconductor manufacturing space. These initiatives reflect management’s prudent strategy of diversifying its business across multiple industries.

Backed by its portfolio strength, the company reported $29.8 billion in revenues in fiscal 2025, up from $28.9 billion in 2024. Management expects AI data center, healthcare and advanced warehouse and retail automation to be the major growth drivers in 2026. For fiscal 2026, revenues are projected at $31.3 billion.

Other Tech Companies With a Diverse Portfolio

Flex Ltd. FLEX has positioned itself as an end-to-end solutions provider. It offers design, procurement, manufacturing, and supply services for a broad range of products, from electronics to athletic shoes. Moreover, it also offers value-added services in design, metal, components, supply chain management integration, and aftermarket services, like the circular economy. This diversified end market presence and portfolio offerings have significantly boosted resiliency in Flex’s business model.

Corning Incorporated GLW is also witnessing healthy traction in multiple industries owing to its comprehensive product offerings. The company boasts a broad portfolio consisting of optical connectivity products. Consumer electronics, display technologies, automotive and solar energy applications. Its competitive strength lies in its focus on innovation. By forming strategic collaborations with Industry leaders, such as Broadcom, Apple and Samsung, the company is expanding into new markets such as AI data center, smartwatches and wearables. The premium smartphone vertical continues to be a major revenue driver for Corning.

JBL’s Price Performance, Valuation and Estimates

Jabil has gained 63.4% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 129.6%.

Going by the price/earnings ratio, its shares currently trade at 18 forward earnings, lower than 25.56 for the industry.

The company’s earnings estimate for 2025 has remained unchanged over the past 60 days.

Jabil carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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