Jabil (JBL) shares surged by 9% in pre-market trading following the release of strong first-quarter results for Q2 2025 that exceeded analysts' revenue and EPS estimates. The growth was driven by high demand in its capital equipment, cloud, and data center divisions. Despite profit being lower than expected due to restructuring costs, Jabil surpassed EPS predictions, indicating a solid quarter and the company staying on course.
The stock price cooled down to $146.26 after the initial increase, marking a 4.9% rise from the previous close. Jabil's stock has shown volatility with 10 moves exceeding 5% in the past year, suggesting that today's surge is considered significant but not revolutionary for the market perception of the company. Although up by 2.4% this year, Jabil's current price is still 15.6% lower than its 52-week high of $173.33 in January 2025.
Investors who had purchased $1,000 worth of Jabil's shares five years ago would now hold an investment valued at $7,908. While modern investors may not have encountered the lessons of the "Gorilla Game" book, which discusses picking tech winners, the report presents a potential enterprise software stock that leverages generative AI technology and capitalizes on automation trends.