JBL Stock: Why Jabil is One of the “Greatest Technology Companies”

“One of the greatest technology companies that people don’t talk about is Jabil [JBL]”, Jim Cramer said recently on CNBC’s Squawk on the Street. “I love them and have for a long time.”

Why is Cramer so bullish on the stock? 

“[T]hey manufacture pretty much everything,” he explains, “they don’t just do tech. I think they are one of the best judges of where you can make something, tariff or no tariff.”

Notwithstanding a couple of recent wobbles, investors would seem to agree with the legendary stock picker’s assessment. 

JBL stock is up a very respectable 34.99% year-to-date, and 56.46% over the last 12 months.

This article will unpack Jabil’s recent performance, and dive into some of the factors that make it look particularly resilient in the current climate. 

What Jabilding in There?

Jabil is a major electronics manufacturing services (EMS) and supply-chain solutions company. It designs, engineers and produces components, circuit boards, assemblies and full systems for original equipment manufacturers (OEMs) across sectors including cloud, data centers, automotive, consumer electronics and health. 

The company operates globally with over 100 sites across 25+ countries and more than 140,000 employees. 

In recent months, Jabil has announced a $500m, multi-year investment in a new US facility in Rowan County, North Carolina, aimed at scaling its manufacturing capacity for cloud and artificial intelligence (AI) data center infrastructure and creating nearly 1,200 jobs. It also secured a $3.2bn revolving credit facility to support expansion. 

At the end of September, Jabil posted strong Q4 2025 results. While the stock climbed following the report, some investors flagged concerns around execution, capacity constraints and valuation premium as headwinds to watch.

Let’s dig into those earnings. 

Q3 Earnings Review

In Q4 2025, Jabil delivered a standout performance: net revenue rose to $8.3bn, up 18.5% year-over-year and $800m above midpoint guidance. This strong performance was supported by growth in the company’s intelligent infrastructure segment, which brought in $3.7bn in revenue during the quarter.

Core operating income reached $519m (non-GAAP), lifting core diluted EPS to $3.29, equivalent to a 43.04% increase from the prior year. On a GAAP basis, operating income was $337m and diluted EPS was $1.99. 

For FY 2025, the company recorded $29.8bn in net revenue and core diluted EPS of $9.75 on non-GAAP operating income of $1.6bn. 

Looking ahead, management has guided net revenue of $7.7bn–8.3bn, with core diluted EPS (non-GAAP) expected in the $2.47 to $2.87 range. 

The company anticipates “significant opportunities ahead in areas such as AI data center infrastructure, healthcare, and advanced warehouse and retail automation,” CEO Mike Dastoor noted during the earnings call. 

Jabil’s forward-looking view includes raising full-year 2026 targets: revenues near $31.3bn, a core operating margin of ~5.6% and core EPS of $11.00, supported by robust cash flow generation. 

Electronics Players: JBL vs FLEX vs FXCOF

Comparing it to two similar companies will bring JBL stock’s strengths and weaknesses into sharper focus.

Flex [FLEX] is a leading EMS and contract design and production firm. It provides supply-chain, prototyping, assembly, logistics and full system integration for a broad set of end markets: cloud, consumer electronics, automotive, healthcare and IoT. 

In its Q1 2026 earnings release, the company reported net sales of $6.6bn and EPS of $064, a surprise of 14.29% above expectations. Its performance was driven by strong demand in data center and power infrastructure, although growth in consumer electronics remains volatile.

Foxconn [FXCOF] is a Taiwanese electronics contract manufacturer supplying major tech OEMs, including Apple [AAPL]. It operates across assembly, display, semiconductors and vertically integrated components. It is the world’s largest contract electronics makers, and its OTC ticker may not communicate its full size and reach.

The company gains from global electronics cycles and supply diversification efforts. It reported record Q3 revenue of NT$2.057trn in early October, up 11% year-over-year, though it came in below analyst expectations. The company saw strong AI demand drive robust growth in its cloud and networking products division, but noted a decline in smart consumer products, which includes iPhones, due to exchange rates. 

Source: Yahoo Finance

Jabil, Flex and Foxconn all occupy the EMS/contract manufacturing space, but with nuanced differences in scale, margin structure, strategic focus and valuation. 

Jabil’s recent growth — especially in its intelligent infrastructure and cloud/data center verticals — offers more upside in secular themes, such as AI and networking. FLEX leans more into diversified EMS across consumer and industrial segments, with thinner margins and higher revenue volatility. Foxconn, with its sheer scale and vertical integration, acts as a bellwether in global electronics cycles but faces headwinds from lower margin segments and exposure to China’s macro environment.

JBL Stock: The Investment Case

The Bull Case for Jabil

Jabil’s scale, diversification and exposure to high-growth sectors like cloud infrastructure, AI hardware and healthcare position it for sustained earnings expansion. 

Its robust balance sheet, $3.2bn credit facility and consistent free cash flow generation enable continued buybacks and capacity investment. Margin expansion in the intelligent infrastructure segment demonstrates pricing power and operational efficiency. 

Trading at roughly 19x forward earnings and a P/S below 1, Jabil offers an attractive entry point versus peers. Long-term: automation, reshoring and AI-related demand could further entrench its role as a key manufacturing partner across industries. 

The Bear Case for Jabil

Despite strong execution, Jabil faces cyclical headwinds tied to macro demand, especially in consumer electronics and renewable energy. 

Supply-chain disruptions, wage inflation and component shortages could compress margins. Its heavy exposure to high-capex industries introduces execution risk as growth moderates. 

The company’s recent expansion into AI-linked manufacturing may already be priced in, limiting upside. Jabil’s valuation reflects optimistic growth assumptions, while competition from Flex and Foxconn could erode pricing leverage. Any slowdown in data-center or automotive orders could quickly dampen revenue momentum, exposing the stock to volatility and sentiment-driven pullbacks. 

Conclusion

Analysts may not all agree with Cramer’s opinion that Jabil is “one of the greatest technology companies”, but sentiment remains broadly positive, with many major firms maintaining or reiterating ‘overweight’ or ‘buy’ ratings. Analysts are particularly bullish on Jabil’s exposure to high-growth sectors like AI infrastructure and cloud computing. Despite some concerns about margin pressures in certain segments, the consensus outlook remains favorable.