Jabil: Margin Expansion Is Just Beginning
Jabil (JBL) is positioned for significant margin expansion, with operating margins expected to rise from 5.7% in FY26 to over 6% in FY27. The company's growth is driven by strong demand in AI infrastructure and a diversified portfolio across multiple sectors. A third hyperscaler win and capacity expansion further solidify its role as a key beneficiary of the ongoing AI build-out.
- ▪Jabil is rated Buy with a $450 price target, implying 32% upside from current levels.
- ▪Margin expansion is the primary value driver, with operating margin projected to increase from 5.7% in FY26 to 6% or more in FY27.
- ▪The company has secured a third hyperscaler win, enhancing its position in the AI infrastructure market.
- ▪Jabil’s diversified portfolio spans automotive, industrial, and technology sectors, reducing reliance on any single market.
- ▪Capacity expansion efforts are aligned with growing demand for AI-related hardware and services.
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