Jabil (JBL) Stock Forecast & Price Target

Jabil Inc. anticipates significant growth in the upcoming fiscal quarter, with a year-over-year revenue increase of 42% expected across its segments. The company is poised to benefit from rising demand for AI infrastructure solutions, projecting meaningful sales growth starting in 2027 and a further increase in 2028. Additionally, Jabil's core operating margin has shown improvement, reaching 5.4% for F3Q25, an increase of approximately 20 basis points year-over-year and 40 basis points sequentially, indicating robust financial health and operational efficiency.

Jabil's Connected Living & Digital Commerce segment reported revenue of $1.3 billion, which, despite being above management’s guidance, represents a 7% decline year-over-year due to persistent softness in consumer-driven demand. Additionally, the guidance for revenues in the broader context remained flat year-over-year, indicating ongoing weaknesses in the electric vehicle and renewable energy sectors, which were only partially countered by growth in healthcare. Furthermore, while inventory days improved to 59 days, aligning with management's targets, this suggests potential challenges in sales velocity and demand sustainability moving forward, contributing to a negative outlook on the company's stock.