End market trends and customer/program ramps suggest strong growth can continue; 4QFY26 wrap

Goldman Sachs published a 4QFY26 wrap-up report on Jabil (JBL.US). Jabil reported 4QFY26 revenue of $10,616mn and non-GAAP EPS of $4.40, above the Street (FactSet) at $9,713mn/$4.07 and above GS estimates. FY27 guidance of $44.5bn revenue, a 6.1% core EBIT margin and $17.55 non-GAAP EPS came in above consensus. Despite results and guidance well above expectations, the stock sold off ~10%, which we attribute to a high bar and investor concerns that there wasn't more margin leverage on the stronger revenue. Jabil expects AI-related revenue to grow ~60% yoy to $14.1bn in FY26 and ~54% in FY27 to $22.1bn, with 6 customers expected to contribute $1bn+ of revenue in its Intelligent Infrastructure segment in FY27, up from 4 in FY26. Growth drivers also include healthcare, energy, defense and automation/robotics. We remain Buy-rated and raise our 12-month price target to $397 from $375, based on 20X Q5-8 EPS, implying 38.4% upside, and raise our FY27/28 EPS estimates to $16.45/$19.85 while int