Jabil Inc (NYSE:JBL) stock rose 1.86% (As on July 4, 4:04:39 PM UTC-4, Source: Google Finance) after Stifel resumed coverage of the company with a Buy rating and $245 price target, highlighting the company’s growing exposure to artificial intelligence infrastructure. The majority of Electronic Manufacturing Services companies have significantly outperformed year-to-date, notes the firm, which believes it is just “the early innings of a long-tailed AI infrastructure investment cycle” and that Jabil is well-positioned to benefit. Stifel attributes this multiple expansion to improvements in end-market mix, margin expansion, and increasing exposure to AI-related data center infrastructure investments.
Jabil’s Intelligent Infrastructure business has experienced significant upside in recent quarters driven by AI-related revenue. Following its fiscal third-quarter 2025 financial results, Jabil increased its outlook for AI-related revenue to $8.5 billion, representing 50% year-over-year growth.
This revised forecast is up from the company’s previous projection of $7.5 billion and substantially higher than its original 2025 forecast of $5 billion to $6 billion in AI-related revenue.
Stifel believes the AI infrastructure investment cycle remains in its early stages with long-term growth potential, positioning Jabil to benefit from continued expansion in this sector.
In other recent news, Jabil has reported strong financial results for its third fiscal quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share of $2.55, exceeding the forecasted $2.29, and revenue reached $7.8 billion, surpassing the expected $7.03 billion. Following this robust performance, Jabil raised its full-year revenue guidance to approximately $29 billion. Non-GAAP net income in the reported quarter was $279 million or $2.55 per share compared with $230 million or $1.89 in the prior-year quarter. Non-GAAP operating income aggregated $420 million, up from $350 million in the year-ago period. Non-GAAP operating margin was 5.4% down from the year-ago quarter’s figure of 6%. In third-quarter fiscal 2025, Jabil generated $406 million of net cash from operating activities. As of May. 31, 2025, the company had $1.52 billion in cash and cash equivalents, with $2.38 billion of notes payable and long-term debt. In the fiscal third quarter, the Regulated Industries segment generated $3.1 billion in revenues, flat year over year. The segment contributed 39% in revenues. Net sales from the Intelligent Infrastructure segment generated $3.4 billion in revenues. The segment contributed 44% of total revenues, up 51% year over year.
As part of its growth strategy, Jabil announced plans to open a new U.S. manufacturing site to support its expanding cloud infrastructure business. The latest developments underscore Jabil’s evolving role in powering the AI ecosystem, reinforcing its upward trajectory in both financial markets and technology supply chains.