JBL Stock Still Worth Buying After Its Powerful AI Driven Rally?

Jabil’s stock rally is tied to accelerating spending on AI infrastructure, but investors are watching whether continued earnings growth can justify its higher valuation. The company reported fiscal third-quarter results with revenue up 11.8% year over year to $8.75 billion, while core diluted EPS rose 23.9% to $3.16, exceeding the Zacks Consensus Estimate. Jabil generated core operating income of $504 million and lifted its core operating margin to 5.8%. Adjusted free cash flow reached $359 million, and management raised its fiscal 2026 outlook for adjusted free cash flow to more than $1.4 billion. For the full year, Jabil now expects revenue around $35 billion, core diluted EPS near $12.70, and core operating margins around 5.8%, with about $13.6 billion projected in AI-related revenue. Competitive risks include customer concentration and rivals like Flex and Sanmina.