Jabil’s Stock (JBL) Pulls Back Ahead of Earnings – What Comes Next?

Jabil Inc's stock price (NYSE: JBL) fell 3.91% during Tuesday's session, almost a perfect 10% correction from the recent high set last week. With earnings due before the market open, the stock is positioned for a renewed breakout, or a potential fall from grace after a 48.8% YTD gain for JBL.

The upcoming earnings report could be crucial in determining the next leg for Jabil holders. Analysts estimate an Earnings Per Share (EPS) of $2.73, coming on revenue of $8.1 billion. These estimates reflect a healthy increase on the $2 EPS this time last year, while revenue is expected to have grown 15.77% Y/Y.

Perhaps unsurprisingly after a strong YTD rally, JBL's stock price currently sits above both its 50-day ($209.46) and 200-day ($189.24) SMAs, reinforcing the bullish trend.

Recent news has played a significant role in shaping investor sentiment toward Jabil. The company's fiscal fourth-quarter 2025 earnings, reported on September 25, exceeded Wall Street expectations with adjusted EPS of $3.29 (beat $2.95 expected) and net revenue of $8.25 billion. CEO Mike Dastoor highlighted robust AI-driven demand across capital equipment, data centers, and networking, which helped offset challenges in other sectors.

Adding to its growth strategy, Jabil announced the acquisition of Hanley Energy Group in October 2025 for approximately $725 million, with potential contingent consideration. Hanley Energy specializes in energy management and critical power solutions for data centers. This acquisition is poised to enhance Jabil's capabilities in AI data center infrastructure, a sector experiencing rapid expansion. The deal is expected to close in the first quarter of calendar year 2026.

Further bolstering its AI infrastructure capabilities, Jabil announced a strategic collaboration with Endeavour Energy in July 2025. The partnership aims to deliver modular, just-in-time AI infrastructure for cloud and hyperscale customers, with a platform scheduled to launch in the United States in the first quarter of 2027. This initiative seeks to provide up to 2 gigawatts per year of elastic AI infrastructure capacity, significantly reducing upfront investment and commissioning times.

Looking back to Q2, and in June, Jabil committed to a $500 million investment to expand its manufacturing capabilities in the Southeastern United States. This investment will focus on cloud and AI data center infrastructure, with the new facility expected to be operational by mid-2026. The move underscores Jabil's commitment to domestic manufacturing and addressing national security concerns amid rising demand for AI infrastructure.

Analysts will be closely watching Jabil's guidance for the next quarter and fiscal year, as well as any updates on the integration of Hanley Energy and the progress of the Endeavour Energy collaboration. CEO Mike Dastoor's commentary on the earnings call will provide further insights into the company's strategic priorities and outlook.

Given Jabil's strategic positioning in the growing AI and data center infrastructure markets, coupled with its recent acquisitions and investments, the company appears well-positioned for continued growth, yet bigger surprises have been seen by markets in the past. The stock's performance post-earnings this week will likely set the tone for its trajectory into 2026.