Jabil (JBL) posted net profit margins of 2.2%, a notable drop from last year’s 4.8%, following a one-off, non-recurring loss of $300 million that affected results through August 2025. However, the company’s EPS and top line are forecast to rebound, with earnings expected to grow at a robust 20.3% per year, which outpaces the US market’s 15.6% estimate. This dynamic has investors weighing a strong growth outlook against recent profit margin compression and episodic losses.
See our full analysis for Jabil.
Next, we will compare these fresh numbers with the most widely watched narratives in the market, examining which perspectives are supported and where assumptions might be tested.
See what the community is saying about Jabil
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Jabil expects its AI-related markets to deliver 40% year-on-year revenue growth, making this the fastest-growing segment highlighted in recent filings.
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Analysts’ consensus view notes that diversification into high-growth AI and technology sectors is central to Jabil’s long-term upside, especially as these areas are projected to expand margin and revenue potential.
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Consensus highlights robust expansion into India, boosting photonics capacity for next-generation tech demand.
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Analysts also flag the $20 billion pharmaceutical solutions market, entered via acquisition, as another driver that could contribute to improved future margins and scale.
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Latest results demonstrate real traction in AI and pharma, two catalysts for revenue momentum that the balanced narrative says could define Jabil’s next phase of growth. 📊 Read the full Jabil Consensus Narrative.
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The Regulated Industries segment reported an 8% year-on-year revenue decline, while inventory days have inched above the company’s target range, placing added pressure on short-term margin recovery.
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Consensus narrative flags that persistent weakness in regulated and renewables-facing businesses stands out as the sharpest risk to profitability, particularly given recent episodic cash flow pressures.
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Analysts point to elevated inventory levels as an immediate challenge that could squeeze net margins if left unchecked going forward.
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Persistent softness in consumer-driven segments, especially following the Mobility divestiture, presents further obstacles to regaining margin levels seen in prior years.
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Jabil’s current price-to-earnings ratio stands at 34.2x, lower than the peer average of 35.5x but notably higher than the US electronic industry’s 26.2x. The stock trades 19.4% below its DCF fair value estimate of $259.90 per share.
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According to the analysts’ consensus view, this mix of valuation signals prompts debate. While the discount versus DCF fair value and peer PE offers upside for buyers, the premium versus the broader industry and slower projected revenue growth (5.8% for Jabil versus 10.1% for the US market) keeps expectations in check.
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Consensus commentary treats the 8% gap between the current share price ($209.34) and the latest analyst price target as a sign the market sees Jabil as fairly valued for now.
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With only a modest gap to the analyst target, upside likely depends on the company proving that AI and pharma expansion can restore margins and achieve more aggressive profit targets than peers anticipate.
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