Why is Jabil stock sliding today?

Jabil's stock experienced a 6.8% decline during mid-day trading after the company released its fiscal fourth-quarter earnings report. The report surpassed expectations in all major areas, with revenue reaching $10.6 billion, a 29% increase year-over-year, and core diluted earnings per share at $4.40, surpassing the $4.06 consensus estimate.

However, the stock's decline is not solely due to the earnings report, but rather investor anxiety about the future. Jabil's fiscal 2027 outlook projects full-year revenue of $44.5 billion and EPS of $17.55, both above Wall Street forecasts. The company is also in the process of adding around 4 million square feet of manufacturing capacity, which adds execution risk and requires customer ramp commitments to proceed as planned.

The stock's elevated price-to-earnings multiple and the perception of trading above fair value estimates further contributed to the sell-off. The broader market's gains did not provide much comfort to Jabil bulls, as the S&P 500 and Nasdaq both advanced on the day. This decline, however, is driven by company-specific factors rather than broader market trends.