Since reporting quarterly results 30 days ago, Jabil shares have climbed 16.7%, driven by revenue growth that exceeded consensus by 120 basis points. The company cited robust demand in healthcare and packaging segments, with capacity utilization rising to 85% from 78% in the prior quarter. Gross margin expanded by 90 basis points to 7.4%, reflecting operational leverage on a 5% year-over-year sales increase. For investors, the key takeaway is Jabil’s ability to convert incremental backlog into cash flow: free cash flow for the quarter improved to $200 million, up from $150 million a year earlier.

Goldman Sachs raised its rating on Jabil to Buy this week after four consecutive trading sessions of share gains. The firm increased its 12-month price target by 15%, citing accelerating end-market recovery in consumer electronics. UBS followed suit with a 10% target lift, highlighting Jabil’s streamlined cost structure, which management said is on track to deliver $300 million in annualized savings by fiscal year end. Collectively, analysts now forecast 10% revenue growth next fiscal year, compared with an 8% consensus estimate just one month ago.

Jabil’s advanced automotive segment accounted for 18% of consolidated revenue last quarter, up from 14% a year earlier. Management disclosed a record order backlog exceeding $1.2 billion, driven by contracts for ADAS modules, EV battery management systems and in-cabin smart displays. New program wins include two tier-one automakers for full cockpit integration, which are expected to ramp in calendar year 2027. With automotive revenue projected to grow at a 25% compound annual rate over the next three years, investors should watch margin expansion as Jabil leverages scale in precision metal stamping and high-speed injection molding.