Jabil Inc. JBL ended fiscal 2026 with a fourth-quarter beat and an outlook that puts artificial intelligence infrastructure at the center of its next growth phase. Management expects another sharp increase in AI-related business during fiscal 2027.
The key issue is how that growth changes Jabil’s revenue mix, margins and operating demands as the company adds capacity to support larger infrastructure programs.
Jabil’s Q4 Beat Sets a Strong FY27 Starting Point
Fiscal fourth-quarter core earnings rose 33.7% year over year to $4.40 per share, beating the Zacks Consensus Estimate of $4.06 by 8.4%. Revenues climbed 28.6% to $10.62 billion and topped the consensus mark of $9.62 billion.
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Intelligent Infrastructure was the main growth engine. Segment revenues increased 56% year over year and represented 55% of quarterly sales, while its core operating margin reached 6.5%. That performance gives Jabil a higher base entering fiscal 2027.
JBL Sees AI Revenue Rising 54% in Fiscal 2027
AI-related revenues reached about $14.4 billion in fiscal 2026, up more than 50%. Management expects the figure to increase 54% to approximately $22.1 billion in fiscal 2027, making AI infrastructure an even larger contributor to growth.
Cloud and data center infrastructure revenues are projected to rise 52% to $17.5 billion. Capital equipment revenues are expected to grow 40% to $4.2 billion, while networking revenues are projected to increase 15%.
The wider manufacturing landscape reflects the same theme. Celestica Inc. CLS supports critical AI and cloud data center infrastructure through design, engineering, manufacturing and platform solutions. Flex Ltd. FLEX also serves data centers with power, cooling, compute and rack-integration capabilities.
Jabil’s Infrastructure Mix Could Lift Margins
Jabil expects fiscal 2027 revenues of $44.5 billion, up 24% year over year, while core earnings are projected to rise 34% to $17.55 per share. Intelligent Infrastructure revenues are expected to reach $25.6 billion, up 43%.
The mix shift is also expected to support profitability. Core operating margin improved to 5.8% in fiscal 2026 from 5.4% a year earlier, and management projects another 30-basis-point increase to 6.1% in fiscal 2027.
JBL’s Capacity Expansion Raises Execution Stakes
Jabil is expanding capacity in North Carolina, Memphis, India and other locations to support new customer programs. The company plans to maintain an asset-light model as infrastructure production scales.
Faster growth also raises execution risk. Six Intelligent Infrastructure customers are expected to generate more than $1 billion in revenues each in fiscal 2027. Semiconductor supply conditions, equipment availability, customer sourcing decisions and lower utilization of new capacity could affect production schedules or anticipated margin gains.
Jabil’s Style Signals Support the AI Theme
The bottom line is that fiscal 2027 could mark a meaningful change in Jabil’s growth mix if the projected AI revenue surge is realized. Faster infrastructure growth, higher expected earnings and margin expansion provide support, but larger programs also increase the importance of execution and customer retention.
JBL currently carries a Zacks Rank #1 (Strong Buy), along with a VGM Score of A and Momentum Score of A. Its Growth Score and Value Score are both B. The Zacks Consensus Estimate for fiscal 2027 earnings has increased 6.1% over the past four weeks to $17.61 per share.
The combination of a top Zacks Rank and favorable Style Scores provides a supportive near-term signal, particularly alongside upward earnings estimate revisions. It does not remove execution or demand risks, but it adds support as investors assess whether Jabil’s AI growth can translate into sustained earnings expansion.You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).