Jabil's (JBL) prelim fiscal 2027 artificial intelligence outlook, with the company expecting AI related revenue to grow 50% in 2027 along with consolidated operating margin of at least 6%, overshadowed the company's in-line guidance for 2026, UBS said in a note.

With the company increasing its fiscal 2026 guidance for revenue and earnings per share to $35 billion and $12.70 from $34 billion and $12.25, UBS said on Wednesday it now expects fiscal 2026 and 2027 EPS of $12.76 and $15.89 from $12.31 and $13.84 previously.

UBS added that even as its estimates for fiscal 2027 and 2028 have increased aided by AI demand, it believes market expectations are likely still higher with 2027 EPS expectations approaching $17.

UBS raised its price target to $430 from $380 and maintained its neutral rating.