Jabil (JBL) Stock Forecast & Price Target

Jabil Inc. anticipates strong performance in the upcoming fiscal fourth quarter (F4Q), projecting a year-over-year segment growth of 42%, indicating robust demand across its diversified service offerings. The company is strategically positioning itself to capitalize on the increasing demand for AI infrastructure solutions, with expectations of meaningful sales growth emerging from a new facility starting in calendar year 2027 and an additional increase in sales by 2028. Additionally, Jabil's core operating margin improved to 5.4%, reflecting a year-over-year increase of approximately 20 basis points and a sequential increase of 40 basis points, driven by strong operating income of $420 million in the third quarter (F3Q25).

Jabil Inc.'s Connected Living & Digital Commerce segment reported revenues of $1.3 billion, which, despite exceeding management's guidance, demonstrated a 7% year-over-year decline indicative of ongoing softness in consumer demand. Furthermore, overall revenue guidance of $3.0 billion remained flat on a year-over-year basis, primarily due to weak demand in the electric vehicle and renewable energy sectors, although there was some growth in the healthcare market. Additionally, while inventory levels decreased to 59 days, aligning with management's targets, this decrease does not counterbalance the broader revenue challenges facing the company.