Jabil Inc. (NYSE:JBL) is set to report its fiscal fourth-quarter earnings on Thursday, September 25, with investor focus squarely on its outlook for fiscal 2026, particularly AI and cloud-related revenue.
Bank of America expects the company to issue its usual conservative guidance for the year ahead, in line with past practice. AI and cloud demand is projected to remain a key growth driver in fiscal 2026, while other end markets are anticipated to stay flat or decline.
Analyst Ruplu Bhattacharya reaffirmed a Buy rating on the stock with a price forecast of $245, based on an estimated calendar 2026 earnings of $11.69 per share, implying a multiple of 21 times.
Also Read: Jabil Stock Nears Key Timing Zone: Is A Peak Forming?
Bhattacharya highlighted Jabil’s large-scale operations, manageable tariff risks with pass-through capabilities, robust capital return programs, improving margins, and strong cash flow generation as key drivers supporting the outlook.
For fiscal 2026, the analyst models $30.8 billion in revenue, a 5.6% operating margin, and $10.94 EPS, broadly in line with Street estimates of $30.7 billion, 5.6%, and $10.87. AI-related revenue is projected to rise 25% year-over-year to $10.5 billion, up from $8.5 billion in fiscal 2025.
The bank stated that Jabil is likely to guide conservatively, projecting AI revenue growth in a narrower range of $1.0-1.5 billion, or $9.5-10.0 billion for fiscal year 2026.
The company’s new North Carolina facility, a $500 million investment, is set to begin production in mid-2026, which will push fiscal 2026 capital expenditures to approximately $540 million, or 1.8% of revenue.
Furthermore, Jabil’s CEO, Mike Dastoor, met with Indian Prime Minister Narendra Modi in July to discuss a new facility in Gujarat, India. This site will focus on supporting the cloud, computing, storage, networking, and semiconductor markets.
For fiscal year 2026, the analyst projects that Jabil’s revenue from the automotive and renewable energy segments will decline year-over-year, although the company could experience some short-term gains before energy tax credits expire at the end of the year.
Healthcare revenue is expected to remain largely flat, with Jabil’s facility for GLP-1 drugs in Croatia currently idle, representing a modest 10–20 basis point drag on operating margin; the facility is anticipated to become operational in fiscal 2027.
The analyst notes that ongoing efforts to pursue deals similar to those with Johnson & Johnson (NYSE:JNJ) could provide additional upside. Digital commerce revenue is forecasted to rise year-over-year, while connected living revenue is expected to see a decline.
Price Action: JBL shares were trading higher by 0.92% to $235.38 at last check Tuesday.
Read Next:
Photo by Michael Vi via Shutterstock
