Stifel reiterates Jabil stock Buy rating on AI revenue growth

Stifel has maintained its Buy rating and $460.00 price target for Jabil stock (NYSE:JBL) based on the company's 2026 results and 2027 outlook. Despite a 8% drop in stock price to $286.86 over the past week, Jabil projects $44.5 billion in 2027 revenue, marking 24% growth year-over-year. The core operating margin is expected to be 6.1% with core earnings per share at $17.55, a 34% increase.

AI-related revenue is forecasted to surge 54% to $22.1 billion in 2027 from 60% growth in 2026, driven by hyperscalers, networking, power and cooling, and AI semiconductor capital equipment. Notably, a second major hyperscaler customer is projected to contribute over 10% of revenue in 2027, with potential upside from a third. Inventory investment is anticipated to increase sequentially throughout 2027.

Growth opportunities extend beyond AI into defense, aerospace, healthcare, energy infrastructure, and robotics. Stifel's analysis highlights execution and margin conversion as key factors for near-term performance, with further upside in fiscal year 2028 through additional hyperscaler, healthcare, India CPO, and physical AI projects.

Jabil reported Q4 results surpassing expectations with $4.40 per share in core earnings and $10.6 billion in revenue, outpacing Wall Street's forecasts. The company's strategic emphasis on AI and cloud technologies has earned Argus a Buy rating with a $475 price target, acknowledging its momentum in emerging technologies.