Jabil (JBL): Assessing Valuation Following Leadership Changes and Lower Net Income

Jabil is making headlines this week as it announced that Executive Chairman Mark Mondello and two Directors will depart following the January 2026 annual meeting. The company also reported a drop in net income, even as revenue rose slightly. This has put its profit margins in focus.

See our latest analysis for Jabil.

Jabil’s share price has climbed sharply this year, with a 46.6% gain year-to-date, as investors took notice of its moves into AI hardware and steady new product rollouts. Even after some short-term volatility and leadership transitions, the company’s total shareholder return over the past twelve months stands at a striking 66%. The long-term outlook is reinforced by an impressive 3-year TSR of 238% and a five-year return nearing 500%, momentum that outpaces broader market benchmarks and signals ongoing confidence despite competitive and margin headwinds.

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With earnings and leadership changes in the spotlight, the key question is whether Jabil’s fundamentals justify its run-up or if the market has already priced in the company’s next stage of growth. Is there still a buying opportunity?

Most Popular Narrative: 15.4% Undervalued

With Jabil’s fair value from the most popular narrative at $247.38 and a last close of $209.34, the stock is seen as attractively priced by analysts. This substantial gap reflects expectations for business momentum well beyond the recent dip in reported income.

The expansion in India, particularly in Gujarat, to support photonics capabilities indicates growth potential in a promising market, likely enhancing future revenues from domestic demand and infrastructure projects. Jabil's acquisition of Pharmaceutics International, Inc. opens access to a $20 billion market, suggesting potential revenue growth and improved margins by expanding its pharmaceutical solutions offering.

Read the complete narrative.

What is actually behind the optimism? Analysts are betting on a major jump in profit margins and a roadmap to earnings milestones that could transform the future P/E. Do the growth drivers justify the rich projections? Get the inside story before the rest of the market catches on.

Result: Fair Value of $247.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing growth in renewable energy and weakness in consumer technology segments could quickly challenge Jabil's bullish outlook if those trends fail to reverse.

Find out about the key risks to this Jabil narrative.

Build Your Own Jabil Narrative

If you see things differently or want to dive deeper into the numbers, you can easily craft your own narrative in just a few minutes: Do it your way

A great starting point for your Jabil research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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