Artificial intelligence (AI) infrastructure spending is picking up faster than many expected. What was earlier seen at about $600 billion for 2026 has now been revised to around $750 billion, showing a 67% jump. That money is flowing straight into companies that build and support data centers, with demand rising across the board.
Semiconductor revenue has already crossed $1 trillion in 2026, mostly driven by AI, while manufacturers tied to cloud and data centers are seeing steady growth. The electronics manufacturing services market is also expected to reach $853 billion by 2030, with AI leading that expansion.
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That trend is already showing up in Jabil (JBL). Shares of JBL stock jumped about 9% after the company reported fiscal third-quarter 2026 results. Jabil reported about $8.8 billion in revenue, beating expectations, and pointed to strong demand from its Intelligent Infrastructure segment. The firm also raised its outlook, now expecting AI-related revenue to reach $13.6 billion for the full year.
With JBL stock up 79% over the past year and more growth expected into fiscal 2027, is this a lasting shift driven by AI demand? Or is it just a strong run that could cool off? Let’s take a closer look.
The Numbers Behind the Rally
Jabil helps big technology and industrial companies build and manage electronic products, which puts it right in the middle of fast-growing areas like cloud and AI infrastructure. The stock has been on a strong run this year, up 79% over the past 52 weeks and 62% so far this year.
www.barchart.com That rally has pushed the valuation higher, with its forward price-to-earnings (P/E) ratio of 32.7 times well above the sector average of around 23 times.
Jabil does return some cash to shareholders, but it is minimal. The company pays a quarterly dividend of $0.08 with a yield of 0.09%, far below the tech sector average. Its forward payout ratio is just 3.07%, showing that most of its cash is being reinvested into the business.
In Q3 2026, the company reported $8.8 billion in revenue, with GAAP operating income of $445 million and EPS of $2.59. On a core basis, operating income came in at $504 million, with EPS at $3.16. The company is also generating solid cash and maintaining scale, with annual sales at $29.8 billion and net income of $657 million in fiscal 2025.
Looking ahead, Jabil expects full-year fiscal 2026 revenue of $35 billion, core operating margins of 5.8%, core EPS of $12.70, and adjusted free cash flow of more than $1.4 billion. That points to steady demand and consistent earnings growth.
What’s Driving Core Business Growth?
One major driver for Jabil is its move deeper into AI data centers through its planned partnership with Adani Group. Jabil brings decades of manufacturing and engineering experience to the table, while Adani adds its strong presence in infrastructure, energy, and logistics. Together, the companies are working on building AI-ready data center hardware, targeting fast-growing demand both in India and globally.
Jabil is also strengthening its position in semiconductor manufacturing. Its investment in EHT Semi adds advanced RF and pulsed-power technology that improves precision in key chipmaking processes like etching and deposition. These capabilities matter more as chips become more complex and demand from AI keeps rising.
On top of that, the company is expanding into data-center power solutions. Jabil acquired Hanley Energy Group for about $725 million in January 2026, with additional payments tied to performance. The deal brings in energy management and critical power systems expertise, helping Jabil go beyond manufacturing and into supporting how AI systems actually run.
What Does Wall Street Think of Jabil Stock?
Analysts still see steady growth ahead. For the current quarter ending August 2026, earnings are expected at $3.64 per share, up 17% year-over-year (YOY) from $3.12 per share. The next quarter is projected at $2.85 versus $2.30, showing 24% YOY growth. For fiscal 2026, earnings are expected to reach $11.65, up 31% from $8.89.
That outlook is also showing up in analyst calls. BofA Securities analyst Ruplu Bhattacharya raised the firm's price target to $354 from $295 and kept a “Buy” rating, pointing to strong demand in the Intelligent Infrastructure segment. Stifel took a more bullish view, lifting its target to $430 from $290 on June 15 while maintaining a “Buy” rating. The firm highlighted Jabil’s AI capacity buildout as a major growth driver.
Across the board, sentiment is very positive. Based on 11 analysts with coverage, JBL stock has a consensus “Strong Buy" rating. The average target of $370.30 has already been surpassed, while the high target of $430 implies potential upside of 15% from here.
www.barchart.com Conclusion
Jabil’s momentum looks rooted in something more durable than a short-term spike, but it is no longer cheap, and that matters. The company is clearly positioned in the center of the AI infrastructure buildout, and both its execution and forward estimates suggest that demand is still accelerating rather than peaking. That said, with JBL stock already trading above consensus targets and valuations stretched versus the sector, expectations are doing a lot of the heavy lifting. The most likely path from here is continued upside, but at a slower, more volatile pace as fundamentals work to catch up with the rally.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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