Jabil Rises 16.7% Post-Earnings as Goldman Sachs Upgrades Target
Jabil’s shares climbed 16.7% since its earnings report 30 days ago after Goldman Sachs raised its price target. The company highlighted its advanced automotive segment—encompassing ADAS and EV components—as a key driver for future growth.
1. Stock Performance Surges Post–Earnings Report
Since Jabil’s quarterly report 30 days ago, the stock has jumped 16.7%, driven by stronger–than–expected margins and upbeat guidance for the upcoming fiscal year. Investors responded positively after the company reported adjusted gross margin of 9.4%, up 120 basis points year–over–year, and raised its full–year organic revenue growth outlook to a range of 7%–9%. Daily trading volume has averaged 2.8 million shares over the past week, 45% above its 30–day average, underscoring sustained buying interest.
2. Analyst Upgrades Bolster Investor Confidence
Goldman Sachs this week upgraded Jabil to a Buy rating and increased its price target by 15%, citing the company’s expanding footprint in high-growth end markets. UBS and Barclays have likewise lifted their earnings estimates by an average of 8% for fiscal 2026, based on stronger backlog positions in healthcare devices and industrial automation. Collectively, analysts now expect Jabil’s adjusted EPS to reach $6.10 next year, up from prior consensus of $5.65.
3. Q3 Financial Highlights Exceed Expectations
In the latest quarter, Jabil delivered revenue of $9.8 billion, up 6% year-over-year, narrowly above consensus of $9.7 billion. Adjusted EPS of $1.47 topped the Street by $0.10, while free cash flow surged 32% to $640 million. Operating working capital improved by $180 million sequentially, driven by inventory reductions in consumer electronics and better receivables collection in the healthcare segment. The company ended the quarter with net leverage of 1.6x EBITDA, providing ample room for potential bolt-on acquisitions.
4. Advanced Automotive Solutions Poised as Next Growth Driver
Jabil’s Advanced Automotive Solutions division posted revenue of $1.2 billion in the quarter, marking 25% year-over-year growth and representing 12% of total sales. The segment’s ADAS modules, EV powertrain components and smart vehicle infotainment systems are being adopted by six of the world’s top ten automakers, according to management. With a growing order backlog of $3.5 billion in automotive programs, Jabil expects this division to deliver double-digit revenue growth through fiscal 2027 and contribute 150 basis points of incremental operating margin expansion.