Jabil Inc.

Jabil Inc. is one of the world's largest providers of engineering, manufacturing, and supply chain solutions, generating $29.8 billion in revenue in fiscal 2025 by operating roughly 100 facilities across about 30 countries for approximately 87 key customers. The company designs, assembles, and delivers products spanning cloud data center servers, automotive electronic systems, medical devices, networking equipment, consumer electronics, and warehouse automation — essentially, if a global brand needs complex hardware built at scale, Jabil is one of a handful of firms that can do it.

This is a story about an old-line electronics manufacturing services business that has been quietly repositioning itself around the most consequential capital spending cycle in a generation. Three years ago, Jabil was a diversified contract manufacturer with roughly equal exposure to automotive, consumer, and industrial end-markets. Today, the Intelligent Infrastructure segment — cloud, data center, networking, and AI-related hardware — accounts for nearly half of revenue and an increasing share of profits. The central question is whether the AI-driven transformation of the revenue mix is durable enough to sustain above-trend growth and expand margins for several more years, or whether the hyperscale capex cycle that has powered the rerating is closer to its peak than the current multiple implies.

The tension in the file is straightforward. Jabil trades at a multiple that embeds continued AI infrastructure growth at scale. If the company can sustain even a moderated version of its current trajectory while maintaining its investment-grade balance sheet and aggressive buyback program, the stock is not obviously expensive. If hyperscale capex flattens or contracts, Jabil's low-margin, high-volume business model provides a floor but not a growth story. The file turns on which of those realities materializes first.