Jabil's AI-Driven Revenue Surge: A Strategic Bet on Future Infrastructure Growth

The global shift toward artificial intelligence (AI) is reshaping industrial and technological landscapes, creating unprecedented demand for infrastructure capable of supporting next-generation computing. At the forefront of this transformation is Jabil Inc. (JBL), a manufacturing and supply chain solutions provider that has positioned itself as a critical enabler of AI infrastructure. With a recent surge in AI-related revenue and aggressive growth projections, Jabil's strategic alignment with this megatrend warrants a rigorous assessment of its valuation and long-term potential.

Valuation Metrics: A High-Earnings, Moderate-Revenue Play

Jabil's current valuation metrics reflect a company trading at a premium to earnings but with a relatively modest price-to-sales ratio. As of 2025, the firm's price-to-earnings (P/E) ratio stands at 34.6x, significantly above the S&P 500's average of around 23x. This premium underscores investor confidence in Jabil's ability to sustain earnings growth amid the AI boom. Meanwhile, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 9.78x and price-to-sales (P/S) ratio of 0.74x suggest a more conservative valuation relative to revenue and cash flow metrics. These figures imply that while Jabil's market capitalization is inflated by earnings expectations, its revenue base remains undervalued, a common characteristic of firms in high-growth sectors.

AI-Driven Growth: A 35% Revenue Surge on the Horizon

Jabil's strategic focus on AI infrastructure is paying dividends. For fiscal 2026 (FY2026), the company projects a 35% year-over-year increase in AI-related revenue, targeting $12.1 billion. This growth is fueled by robust demand in cloud and data center infrastructure, particularly from hyperscale customers and next-generation liquid-cooled platforms. In Q1 FY2026, Jabil's Intelligent Infrastructure segment already contributed 46% of total revenues ($3.8 billion), driven by AI-related verticals. The firm has since raised its full-year FY2026 revenue guidance to $32.4 billion, signaling confidence in maintaining this momentum.

Analyst projections corroborate Jabil's optimism. While initial forecasts ranged from a 25% to 34.4% growth in AI revenue, Bank of America's recent upward revision to $12.1 billion-representing a 35% increase-has become the new benchmark. For FY2027, broader revenue growth is anticipated, with a projected $34.3 billion total revenue and a 16% rise in earnings per share to $12.83. These figures suggest that Jabil's AI-driven strategy is not a short-term spike but a durable transformation.

Strategic Positioning and Market Dynamics

Jabil's success hinges on its ability to capitalize on the AI infrastructure boom, a market expected to expand rapidly as enterprises and governments invest in data centers, edge computing, and AI-specific hardware. The firm's partnerships with hyperscale clients and its expertise in liquid-cooled systems-critical for managing the thermal loads of AI workloads- position it as a key supplier. While specific strategic alliances remain undisclosed, Jabil's Q1 performance and revised guidance indicate strong customer retention and order growth in this segment.

However, the company's valuation must be contextualized within industry dynamics. Unlike pure-play AI firms, Jabil operates in a diversified manufacturing space, balancing AI growth with more traditional segments. This diversification mitigates risk but also dilutes the pure upside of a fully AI-focused business. Nonetheless, the 46% contribution from AI-related verticals in Q1 FY2026 demonstrates that Jabil's bets are already materializing.

Long-Term Potential: Justifying the Premium

The question for investors is whether Jabil's current valuation justifies its long-term growth trajectory. A P/E of 34.6x appears elevated, but when paired with a projected 35% revenue growth rate and a P/S ratio of 0.74x, the math begins to align. High-growth companies often trade at elevated earnings multiples because future cash flows are discounted at a lower rate. Jabil's EV/EBITDA of 9.78x also compares favorably to peers in industrial manufacturing, where margins and growth rates are typically lower.

Moreover, the firm's upward guidance revisions and analyst projections for FY2027 suggest that Jabil is not merely riding a temporary wave but building a sustainable infrastructure business. The 16% EPS growth target for FY2027, if achieved, would further validate its ability to convert AI-driven revenue into profitability.

Conclusion: A Calculated Bet on the AI Era

Jabil's AI-driven revenue surge represents a compelling case study in strategic foresight. While its valuation metrics reflect a premium to earnings, the company's alignment with the AI infrastructure megatrend-backed by robust revenue growth, revised guidance, and analyst optimism-justifies this premium. For investors, the key risks lie in the execution of Jabil's AI strategy and the broader macroeconomic environment. However, given the structural demand for AI infrastructure and Jabil's early-mover advantage, the firm appears well-positioned to deliver outsized returns over the next decade.