Zacks Investment Ideas spotlight: Jabil

Press Release

Chicago, IL – April 9, 2026 – Zacks Investment Ideas spotlights Jabil (JBL), a standout performer in the AI infrastructure sector.

Jabil: Outperforming the Tech Market in 2026

While the majority of technology stocks have struggled under this year’s market pressure—especially those with rapid growth and high valuations—Jabil has managed to deliver impressive results. Despite widespread concerns about the sustainability of AI investments and a shift toward defensive stocks, Jabil has consistently outpaced its peers.

As of early April, Jabil’s stock has climbed approximately 20% since the start of the year, significantly surpassing the broader market’s returns. Over the past twelve months, shares have soared more than 125%, demonstrating the company’s resilience and strategic agility in a challenging environment.

What Sets Jabil Apart?

Jabil’s success is the result of a deliberate transformation from a traditional contract manufacturer to a diversified, high-margin partner serving demanding industries. The company plays a crucial role in the AI data center ecosystem, producing the hardware that powers advanced AI models.

Its broad portfolio now includes AI infrastructure, healthcare, regulated markets, and advanced automation—sectors that have shown greater stability compared to consumer electronics during economic uncertainty.

Companies that can adapt to long-term growth trends while maintaining operational excellence often reward investors during cautious market periods. Jabil exemplifies this approach.

In its latest fiscal Q2 report, Jabil extended its history of exceeding expectations. The company reported $8.3 billion in net revenue, a 23% increase year-over-year and well above the consensus estimate of $7.8 billion. Adjusted earnings per share reached $2.69, up 38.7% from the previous year and ahead of forecasts.

Following these results, management raised its full-year outlook for fiscal 2026, now projecting revenue of $34 billion (up from $32.4 billion) and core EPS of $12.25 (up from $11.55).

These upward revisions reflect growing confidence in the second half of the year, especially in AI infrastructure, healthcare, and advanced automation. Jabil’s ability to increase guidance in a cautious economic climate underscores its strong execution and visibility.

The Zacks Perspective

Jabil currently holds a Zacks Rank #2 (Buy), supported by positive analyst revisions and robust growth in key business segments. Recent consensus estimates for fiscal 2026 align with management’s raised guidance, with analysts continuing to adjust their forecasts upward.

Jabil’s transformation over recent years has been pivotal. The 2024 sale of its low-margin mobility business allowed the company to focus on higher-value opportunities. Today, Jabil is a key manufacturing and engineering partner for leaders in AI hardware, GLP-1 injector pens (a major growth area in healthcare), capital equipment, and automation solutions.

This diversification has made Jabil less vulnerable to industry cycles than companies focused solely on consumer electronics. As many tech firms face slowing growth, Jabil’s exposure to enduring growth drivers has provided both stability and momentum.

The company’s Intelligent Infrastructure division, which includes data center racks and liquid cooling systems, has seen surging demand as large-scale AI deployments accelerate. In the most recent quarter, AI-related revenue grew 46% year-over-year, and management’s raised guidance suggests this trend will continue. Strong free cash flow also enables ongoing share buybacks and dividend increases, further benefiting shareholders.

Conclusion

Jabil’s global reach, long-standing customer relationships, and focus on high-value sectors provide significant advantages. Its disciplined operations and strategic portfolio management position the company to weather short-term challenges while capturing long-term opportunities.

In a year when many technology stocks have struggled, Jabil has quietly built value through diversification, strong execution, and exposure to lasting trends in AI and healthcare. Its ability to outperform in a difficult market suggests the potential for continued success as these growth drivers gain strength.

Disclosure: Jabil is a core holding in the Zacks Headline Trader portfolio.

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