Since reporting quarterly results 30 days ago, Jabil has climbed 16.7% as investors responded to revenue growth in its high-margin electronics manufacturing services segment. The company’s revenue rose 8% year-over-year to $7.2 billion, driven by double-digit expansion in its healthcare and industrial end markets. Gross profit margin improved by 60 basis points to 8.9%, reflecting operational efficiencies at its new assembly facility in Juarez, Mexico. This post-earnings momentum has been bolstered by a 5-day winning streak in the stock, underscoring market confidence in Jabil’s ability to sustain margin improvements and cash flow generation throughout the fiscal year.

Goldman Sachs raised its medium-term revenue forecast for Jabil by 4% and increased its price target following a visit to the company’s Silicon Valley manufacturing site. The firm cited stronger-than-expected order volumes for next-gen consumer electronics, including virtual reality headsets and 5G networking equipment. Goldman’s new target implies a potential upside of 12% from current levels, driven by an anticipated acceleration in capital spending by key customers in North America and Europe. The upgrade marked the third positive revision by major brokerages in the last two months.

Jabil’s Advanced Automotive Solutions division is gaining traction with automakers investing in ADAS (advanced driver-assistance systems), electric vehicle battery packs and smart cockpit modules. In the past quarter, automotive revenues surged 22% year-over-year to $900 million, as Jabil secured production contracts for two major EV manufacturers in Asia and Europe. The division’s order backlog exceeds $2 billion, up 35% from twelve months ago, positioning the company to capture a larger share of the expanding EV supply chain. Management projects segment operating margin to reach 7% by year-end, compared with 4.5% in the prior year period.