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Investing.com - Stifel has reiterated its Buy rating and $245.00 price target on Jabil (NYSE:JBL) following the company’s fiscal fourth-quarter 2025 earnings report that exceeded analyst expectations. According to InvestingPro data, the stock has delivered an impressive 66% return over the past year, though it currently trades above its Fair Value, with a P/E ratio of 35.5x.
Jabil reported revenue of $8.3 billion versus the consensus estimate of $7.6 billion, with adjusted operating margin of 6.3% compared to the expected 6.1%, and adjusted earnings per share of $3.29 beating the forecast of $2.92. The company maintains a solid financial health score of "GOOD" on InvestingPro, which offers 12 additional exclusive insights about Jabil’s performance and outlook.
The outperformance was primarily driven by strength in the company’s Intelligent Infrastructure segment, which represented approximately 41.3% of fiscal year 2025 revenue and grew 33.7% year-over-year, with AI-exposed sub-segments like Data Center Infrastructure and Networking growing at triple and double-digit annual rates, respectively.
Jabil’s fiscal year 2026 guidance was broadly in-line with expectations, with first-quarter projections surprising positively, suggesting operational resilience despite retrofit-related margin pressure expected in the first half of the fiscal year.
The company reaffirmed its margin accretion path toward a 6.0% adjusted operating margin run-rate by fiscal year 2027, with AI remaining the core growth driver as two hyperscalers ramp up and multi-billion-dollar requests for quotations are in play.
In other recent news, Jabil Circuit Inc. announced its fiscal fourth-quarter 2025 earnings, which surpassed analysts’ expectations. The company reported earnings per share of $3.29, exceeding the projected $2.90. Jabil’s revenue also outperformed forecasts, reaching $8.3 billion compared to the anticipated $7.55 billion. Despite these strong financial results, the stock experienced a decline, attributed to investor concerns over broader market conditions. These developments highlight the company’s ability to exceed financial expectations, even as external factors influence stock performance. The earnings report showcases Jabil’s financial strength and operational success in the recent quarter. Investors may be interested in how these results align with broader market trends and the company’s future strategies.
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