Buy Jabil (JBL) Stock as AI Infrastructure Demand Fuels Strong Q4 Results?

Along with Micron Technology MU), electronics manufacturer Jabil JBL) was a tech highlight of this week’s earnings lineup, delivering impressive fiscal fourth-quarter results as booming demand for artificial intelligence infrastructure continues to fuel rapid growth.

Adding to the appeal, Jabil’s Zacks Electronics-Manufacturing Services Industry currently ranks in the top 11% of more than 240 Zacks industries, highlighting a favorable backdrop for the company and its peers.

That said, let’s take a look at Jabil’s Q4 results and guidance, along with its valuation, to see if now is still a good time to buy JBL or if much of the upside is already priced into the stock.

Jabil’s Strong Q4 Results

Jabil posted Q4 adjusted earnings of $4.40 per share, up roughly 34% from $3.29 a year ago and 8% above the Zacks EPS Consensus of $4.06.

Revenue climbed 28.6% year over year to $10.62 billion, comfortably surpassing expectations of $9.62 billion by nearly 10%. The standout was Jabil's Intelligent Infrastructure business, where revenue surged 56% to approximately $5.8 billion as AI-related demand accelerated beyond management's already-strong expectations.

Jabil also benefited from better-than-expected performance in automotive and transportation, as well as renewable and energy infrastructure products, broadening Q4 strength beyond AI alone.

AI Growth Should Remain a Major Catalyst

Management expects the momentum to continue in fiscal 2027, projecting revenue to increase 24% to $44.5 billion, while adjusted EPS is forecast to jump 34% to $17.55. Jabil also expects its core operating margin to expand 30 basis points to 6.1%.

This comes as Jabil's expanding AI and data-center exposure is placing it alongside electronics manufacturing leaders such as Celestica CLS) and Sanmina SANM), which are competing for many of the same advanced electronics and infrastructure manufacturing opportunities.

JBL Performance & Valuation Comparison

Year to date, Jabil stock is up 30%, roughly on par with its Zacks Electronics-Manufacturing Services Industry and ahead of the S&P 500 and Nasdaq’s gains of 11% and 16%, respectively.

Despite outperforming the broader stock market indexes over the last two years as well, JBL’s 150% return has trailed its Zacks industry’s 251% gain, with Sanmina stock up more than 230% during this period and Celestica shares skyrocketing over 600%.

At current levels, JBL is trading at a reasonable 19X forward earnings multiple, offering a modest discount to the S&P 500’s 21X and its Zacks industry average of 24X.

JBL’s strong earnings outlook for FY27 certainly adds to the appeal, with Celestica shares trading at a much richer 32X forward earnings, although Sanmina stands out at just 15X.

Bottom Line

Jabil's Q4 results reinforced its compelling growth story, with AI infrastructure supporting accelerating revenue and earnings growth.

Still, investors may not need to aggressively chase JBL following its substantial run over the last year. For now, Jabil stock lands a Zacks Rank #3 (Hold), suggesting better buying opportunities could still be ahead.

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

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