Why Jabil Stock Fell 9.7% Thursday Morning

Core Insights - Jabil reported strong fourth-quarter results for fiscal year 2025, exceeding Wall Street's expectations and providing optimistic guidance for the next quarter, yet the stock experienced a significant decline of 6.7% on the day of the announcement [2][3][7] Financial Performance - The company achieved a 99.6% stock price increase over the past year, but the stock was trading at a high valuation of 43.7 times trailing earnings prior to the report [3][6] - Despite the positive AI growth narrative, Jabil faced challenges in other segments, with automotive sales down 5% year-over-year, healthcare revenues up only 4%, and connected living sales down 27% [4][7] Market Reaction - The stock's decline is viewed as a reality check rather than a disaster, as it remains up 86% over the past year even after the correction [6][7] - The anticipated 25% growth in AI-related sales for 2026 is less impressive compared to the 80% growth expected in 2025, indicating a potential slowdown in the AI growth momentum [4][6]