Jabil (JBL): Evaluating Valuation After Strong Earnings Growth and Upbeat Guidance

Jabil (NYSE:JBL) just reported strong fourth-quarter results, with sales and net income both climbing meaningfully from a year ago. The company also issued upbeat guidance for the upcoming quarter and for 2026.

See our latest analysis for Jabil.

After climbing on the back of upbeat earnings and fresh guidance, Jabil’s recent momentum stands out, with a 12-month total shareholder return of 80.2% and the stock building real optimism among investors focused on technology and manufacturing. Even with some shorter-term swings, those robust long-term gains reflect renewed confidence in the company’s prospects as demand for supply chain partners like Jabil grows.

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With such rapid gains and positive earnings momentum, investors must now ask whether Jabil’s strong run is still leaving room for value or if the market is already factoring in all of its anticipated growth ahead.

Most Popular Narrative: 6.3% Undervalued

With a narrative fair value of $230.25 compared to Jabil’s last close of $215.69, the market may not be fully factoring in consensus expectations for the company’s future performance. This creates a striking tension between strong momentum and the narrative’s projected upside.

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.

Curious how ambitious expansions and major new markets shape this bold valuation? The narrative depends on forecasts that only a handful of technology manufacturers are expected to deliver. There is a powerful assumption behind these numbers, and it is all in the details you have yet to see.

Result: Fair Value of $230.25 (UNDERVALUED)

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

However, persistent weakness in key segments and inventory pressures could challenge Jabil’s growth outlook and put recent optimism to the test.

Find out about the key risks to this Jabil narrative.

Another View: What Do the Multiples Say?

While fair value estimates suggest Jabil is undervalued, its price-to-earnings ratio of 35.2x stands out as higher than both the industry average (24.4x) and its peers (33.3x). This premium could mean investors are paying up for future growth, or it could introduce valuation risk if growth falters. Will the market’s optimism prove justified?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Jabil Narrative

If you see the story differently or want to dig into the numbers for yourself, you can craft your own view in under three minutes, and 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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