The intense take-up of artificial intelligence (AI) has been a powerful motor driving contract electronics manufacturer Jabil (JBL 8.89%) lately. It also helped power the company's latest quarterly results, which were published Tuesday morning. Investors very much liked what they saw in the numbers, and rewarded the company by boosting its share price nearly 9% higher on the day.
Double-digit gains
Jabil's fiscal third quarter of 2025 results were posted before market open, and they set the tone for the stock that day. Revenue rose by a sturdy 16% year over year to just over $7.8 billion, handily beating the average analyst estimate of $7 billion.
Image source: Getty Images.
The story was similar on the bottom line, with "core" -- i.e. non-GAAP (generally accepted accounting principles) adjusted -- net income rising 21% to $279 million, or $2.55 per share. The latter number was well above the consensus $2.29 projected by analysts tracking Jabil stock.
Management attributed the double-digit gains to growth in expanding end markets, such as data centers infrastructure, and cloud computing. Its intelligent infrastructure segment did particularly well, thanks greatly to intensifying demand for artificial intelligence (AI) solutions.
Meanwhile, Jabil announced it is to invest roughly $500 million to expand its manufacturing footprint in the Southwest U.S., specifically targeting the AI and cloud businesses. The company wrote that this will "enable new large-scale manufacturing capabilities, capital investments, and workforce development." Such facilities should come onstream in mid-2026, it added.
An underappreciated AI stock?
Jabil also proffered guidance for both its current quarter and the entirety of fiscal 2025. For the latter period, it's anticipating revenue of $29 billion, filtering down into adjusted net income of $9.33 per share. Those figures in fiscal 2024 were a respective $28.9 billion, and $8.49.
Even with that post-earnings pop, Jabil remains a somewhat under-the-radar play on the explosion of AI. As such, I'd flag it as a sleeper stock in that pack, and one well worth consideration as a buy.
