Jabil Prepares For Key Earnings During AI, Infrastructure Shifts

Core Viewpoint - Jabil Inc. is facing downward pressure on its stock as investors anticipate its upcoming earnings report, with a focus on AI demand, new capacity projects, and a recent power-infrastructure deal that may influence guidance [1][2]. Financial Performance and Forecast - Jabil is expected to report fiscal year 2026 revenue of $31.5 billion and EPS of $11.06, slightly above previous estimates [7]. - The company’s management typically provides cautious guidance, with potential upside of five to ten cents to the prior fiscal 2026 EPS forecast of $11 [4]. Strategic Developments - The acquisition of Hanley Energy for $725 million is seen as strategic due to increasing data center power demand, with expected revenue generation of $350 million to $400 million and mid-to-high-teens EBITDA margins [6]. - Jabil's new facility in North Carolina is projected to begin operations next summer, potentially adding $1 billion in annual sales [5]. Market Sentiment and Analyst Insights - BofA Securities analyst Ruplu Bhattacharya maintains a Buy rating on Jabil, raising the price target from $255 to $262, indicating confidence in the company's future performance despite current stock declines [2][4]. - Jabil shares have increased approximately 19% since late November, and any post-earnings pullback is viewed as an attractive buying opportunity [4]. Operational Challenges - The company is retrofitting factories for liquid-cooling production, which may lead to tight capacity in the second quarter, affecting output during this period [3].