ST. PETERSBURG, Florida, August 11, 2026, 11:48 EDT – Jabil NYSE:JBL stock climbed after analysts at UBS raised their rating, projecting $20.3 billion in artificial intelligence-related revenue.
- Jabil shares gained 3.3% following an upgrade to Buy by UBS.
- UBS maintained its $430 price target, which suggests a potential upside of 23.6% from $347.84.
- The bank expects AI-driven revenue to reach $20.3 billion in fiscal 2027.
- The projection reflects growth of about 49%, which is similar to Jabil’s current rate.
Shares in Jabil Inc. NYSE:JBL climbed on Tuesday after UBS Group AG NYSE:UBS lifted its rating on the electronics manufacturer to Buy. Analyst David Vogt maintained his price target of $430 and projected AI-driven revenue of $20.3 billion for fiscal 2027.
The projection is significant as it does not depend on accelerating growth. Jabil anticipates a 51.1% increase in AI-related revenue for the fiscal year. UBS, in effect, wants the company to maintain that rate for another cycle.
The thesis is challenging yet quantifiable, providing investors with a more straightforward assessment than general statements regarding AI demand.
| Market snapshot | Value |
|---|---|
| Jabil stock last trade | $347.84 |
| Movement on Tuesday | +3.33% |
| Session trading range | $347.13-$356.23 |
| UBS target price | $430 |
| Potential upside to target | 23.6% |
| Price-to-earnings ratio | 43.40 |
At 11:12 EDT, Jabil shares were priced at $347.84, an increase of 3.33%. Previously in the session, the stock reached a high of $356.23. The potential upside is based on this most recent live figure.
Vogt attributes the re-rating to stronger demand from data centers and Jabil’s capacity to turn this into revenue. Jabil’s shares rose more steeply than other contract manufacturers, with Celestica Inc. NYSE:CLS dropping 1.0% and Flex Ltd. NASDAQ:FLEX gaining 1.2% during the same period.
| AI-related revenue | Revenue | Annual change | Share of FY2026 total |
|---|---|---|---|
| Reported for fiscal 2025 | $9.0 billion | – | – |
| Fiscal 2026 guidance | $13.6 billion | +51.1% | 38.9% |
| UBS projection for fiscal 2027 | $20.3 billion | +49.3% | – |
Jabil now forecasts $13.6 billion in AI-related revenue for fiscal-2026, an increase from $9.0 billion previously. UBS projects $20.3 billion, incorporating an additional $6.7 billion. Growth rates and revenue proportions are derived from company data and the UBS forecast.
The revenue composition is changing rapidly. AI-driven business is expected to account for nearly 39% of Jabil’s projected $35 billion in sales for fiscal 2026.
Chief Executive Mike Dastoor stated, “AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher.” The company had increased its outlook as it reported fiscal third-quarter results in June. Jabil
| Operating measure | Fiscal Q3 2026 | Fiscal Q3 2025 | Change |
|---|---|---|---|
| Revenue | $8.751 billion | $7.828 billion | +11.8% |
| Net income | $275 million | $222 million | +23.9% |
| Core earnings per share | $3.16 | $2.55 | +23.9% |
| Core operating income | $504 million | Comparison not disclosed | – |
Jabil reported an 11.8% increase in third-quarter revenue to $8.751 billion. Both net income and core earnings per share climbed by around 24%. The results were disclosed in Jabil’s earnings statement submitted to the Securities and Exchange Commission.
Profits increased faster than revenue. This supports the AI investment case beyond just higher sales volumes, although the balance may shift from quarter to quarter.
| Analyst | Firm | Latest view | Target | Date |
|---|---|---|---|---|
| David Vogt | UBS Group AG NYSE:UBS | Buy, upgraded | $430 | Aug. 11 |
| Samik Chatterjee | JPMorgan Chase & Co. NYSE:JPM | Buy, maintained | $450 | June 22 |
| Ruben Roy | Stifel Nicolaus | Buy, maintained | $460 | June 21 |
| Jim Kelleher | Argus Research | Buy, reiterated | $475 | June 17 |
| Mark Delaney | The Goldman Sachs Group, Inc. NYSE:GS | Buy, maintained | $482 | June 17 |
| Ruplu Bhattacharya | Bank of America Corp. NYSE:BAC | Buy, reiterated | $410 | June 11 |
Google Finance shows nine analysts with Buy ratings, and none recommending Hold or Sell. Price targets are set between $410 and $482, and the consensus target comes to $447. UBS, even after Tuesday’s upgrade, maintains a target below this consensus.
The positive scenario depends on performance. Jabil needs to generate almost $6.7 billion in AI-related revenue next year while maintaining margins and cash flow.
Risks: With a price/earnings ratio of 43.4, there is limited buffer against a slowdown in demand. Revenue can be affected from quarter to quarter by customer concentration, supply of components, and timing of projects.
The upcoming indicator is fourth-quarter outlook, projecting revenue between $9.2 billion and $10.0 billion and core earnings per share in the range of $3.80 to $4.20. Looking further, investors seek confirmation that Jabil is able to deliver approximately 50% AI growth again while maintaining profit margins.
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