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This Month's Exclusive Content Jabil Quietly Manufactures an Accelerating Stock Price RallyWritten by Thomas Hughes. Article Published: 3/19/2026. 
Key Points - Jabil Inc. is positioned to accelerate growth in 2026 and extend it into the subsequent fiscal year as AI drives demand.
- Growth and cash flow point to aggressive share buybacks and a resulting uptrend in share price.
- Analysts and institutional trends are bullish, providing support for this market and driving it in 2026.
- Special Report: Elon Musk's $1 Quadrillion AI IPO
Jabil Inc. (NYSE: JBL) is critical to the tech industry, as it is a leading manufacturer and provider of manufacturing services for technology companies. Its top customers include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Cisco (NASDAQ: CSCO), Ericsson (NASDAQ: ERIC), and Tesla (NASDAQ: TSLA), which rely heavily on it for components and services. This now-diversified business is fueling a return to growth and supports a robust capital-return program. That combination should reduce the share count by mid-single-digit percentages annually and by double-digit percentages over the longer term, setting the stage for this stock to continue moving higher. Elon's Next Move Could Be His Greatest Yet He revived EVs, revolutionized space, and built the biggest satellite network. But this AI tech could go down in history as the crown jewel of Elon's career. Nvidia CEO Jensen Huang says, "What Elon and his team has achieved is singular. It's never been done before." Get the full story here. Share buybacks are significant and more than compensate for the lack of a dividend. The fiscal Q2 2026 buyback activity resulted in a 3.7% quarterly drop in the average share count and a 4.4% decline year to date (YTD), providing meaningful leverage for investors, though there is an offset. Buybacks consume cash, increase treasury shares, and reduce shareholders' equity. However, the fiscal Q2 and full-year declines in equity are modest; the increase in treasury share value has more than offset the equity reduction. In effect, the company is lowering its share count faster than buybacks are shrinking equity, providing investors with dual forms of leverage. Jabil's Value Is Deep This stock trades at about 22x its current-year earnings forecast (as of mid-March), roughly in line with the S&P 500 but appearing discounted versus long-term forecasts given the growth outlook, operational quality, and capacity for share repurchases. Looking forward, 2030 forecasts imply the stock could be roughly 50% undervalued, with potential upside of $130 or more over the coming years. 
Analysts aren't entirely bullish yet, but the data show a bullish revision cycle is underway, strengthened by the recent earnings release. Early revisions include an increased price target from J.P. Morgan Chase & Co. and an initiation of coverage from Baird. Both firms rate the stock Strong Buy/Overweight with price targets near $287.50 — above consensus and indicating potential for a new all-time high. In short, coverage is expanding, sentiment is firming, and price-target revisions are supporting the uptrend. Jabil Impresses Market With Beat and Raise Quarter Jabil delivered a strong quarter with broad-based strength. Revenue of $8.28 billion was up 23% year over year (YOY), reversing last year's contraction and marking the fourth consecutive quarter of accelerating growth. The Intelligent Infrastructure segment was strongest, driven by Cloud, Datacenter, Networking, and Communications Equipment, while Regulated Industries such as Automotive and Renewables also improved. Margin performance was notable. Gross margin rose by roughly 500 basis points and adjusted earnings increased about 39%, helped by revenue leverage and operational execution. Importantly, adjusted earnings beat MarketBeat's consensus by $0.18 per share, or roughly 7.1%, reinforcing the capital-return outlook and improving the growth and profitability narrative. Guidance also supports the stock outlook. Management raised guidance for both Q3 and the full year, placing ranges above existing consensus estimates. At face value this affirms an outlook for continued acceleration; given Jabil's typically cautious guidance approach, actual results could come in even stronger. Institutional Data Aligns With Jabil's Uptrend: They Buy Dips The institutional data align with Jabil's uptrend, suggesting institutions have been buying the post-release price dip. The data show institutions hold more than 90% of the outstanding shares (on a trailing 12-month basis) and continued to increase positions into early 2026. That concentration provides a tailwind for the stock and limits downside risk, with long-term support near the 150-day exponential moving average. If that support holds, the March pullback is unlikely to extend far and the uptrend should resume before mid-year. Catalysts include the impact of AI on demand and operational efficiency. AI is driving demand across segments — particularly infrastructure — and is expected to remain robust through the year. At the same time, AI-driven improvements in manufacturing efficiency should support long-term margin and earnings expansion. |
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