Jabil Prepares For Key Earnings During AI, Infrastructure Shifts
Jabil Inc. (NYSE:JBL) shares were down on Wednesday as investors looked ahead to its upcoming earnings report.
The firm will release its first-quarter fiscal year 2026 financials on Wednesday, Dec. 17, before the market opens.
• Jabil shares are experiencing downward pressure. Why is JBL stock trading lower?
Wall Street is watching AI demand, new capacity projects and a recent power-infrastructure deal that could shape guidance.
BofA Securities analyst Ruplu Bhattacharya reiterated the Buy rating on the stock, raising the price target from $255 to $262.
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Analyst’s Take
Bhattacharya says Jabil should see continued strength in AI-related revenue, though second-quarter capacity will be tight as the company retrofits factories for liquid-cooling production.
The upgrade effort should take about four months and affect second- and early third-quarter output.
Bhattacharya notes management usually guides cautiously and sees potential upside of five to 10 cents to the prior fiscal 2026 EPS forecast of $11.
Options imply an 8% one-day move, and he adds that Jabil shares have climbed about 19% since late November. He believes any post-earnings pullback would offer an attractive buying opportunity.
The analyst says fiscal 2027 appears set for stronger revenue and margins as Jabil's new North Carolina facility begins operations next summer, potentially adding $1 billion in annual sales.
Bhattacharya also expects its Croatia site to begin GLP-1 drug-handling work, helping reduce margin pressure, while AI revenue remains robust across custom and merchant silicon projects.
The analyst calls the Hanley Energy acquisition strategic, citing rising data center power demand. He highlights that the $725 million deal, plus possible contingent payments, should close in the second quarter of fiscal 2026.
Hanley generates $350 million to $400 million in revenue with mid-to-high-teens EBITDA margins.
He adds that Jabil is unlikely to turn Hanley's offerings into a branded product line, instead using the assets to build custom EMS power solutions.
Bhattacharya says the services segment is especially appealing because of its higher margins.
The analyst now forecasts fiscal 2026 revenue of $31.5 billion and EPS of $11.06, slightly above prior estimates.
JBL Price Action: Jabil shares are trading lower by 1.47% to $254.73 at publication on Wednesday.
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