Jabil Stock Plummets 9.7%: Thursday Morning’s Shocking Drop Explained

Another day, another manufacturing giant takes a tumble.

The Morning Massacre

Jabil investors woke up to a brutal Thursday session as shares cratered 9.7% in early trading. The manufacturing specialist joined the growing list of industrial stocks getting hammered by market forces.

Numbers Don't Lie

That 9.7% drop represents serious shareholder value evaporation—the kind that makes portfolio managers reach for antacids. No specific catalyst emerged immediately, leaving traders scrambling for explanations.

Sector-Wide Jitters

Manufacturing stocks face persistent headwinds—supply chain nightmares, demand uncertainty, and the eternal dance between inflation and interest rates. Jabil's drop fits a broader pattern of industrial sector volatility.

Wall Street's Selective Memory

Analysts who praised Jabil's 'resilient business model' last month now highlight 'structural challenges'—proving once again that Wall Street optimism evaporates faster than a puddle in the desert when numbers turn south.

When good news meets a grumpy market

Jabil crushed Q4 targets and issued bullish guidance for the next period, but the stock plummeted anyway. Management even spent a large chunk of the earnings call discussing the company's use of artificial intelligence (AI) and robotics to make the manufacturing process more efficient. AI-related sales are expected to rise 25% next year.

That report checked lots of bullish boxes, and Jabil's stock fell anyway. What's going on?

Well, Jabil approached this report with a full head of steam, having gained 99.6% in 52 weeks as of Wednesday night. The stock traded at a lofty 43.7 times trailing earnings. The reported results were impressive, but apparently not enough to support Jabil at these nosebleed-inducing levels.

Furthermore, Jabil's explosive AI growth was undermined by weak results in other areas. Sales to the automotive market fell 5% year over year, healthcare revenues only increased by 4%, and connected living sales plunged 27%. Those are scary numbers if investors expect high growth across the board.

Oh, and the 25% AI growth target in 2026 is less impressive next to an 80% jump in 2025. The rocket-ship part of this surge seems to be over.

Image source: Getty Images.

Not exactly a bargain-bin situation

So Jabil's bears found some substantial support in this report, but the price dip is relative to a long uptrend. After today's drop, the stock is still up by 86% over the last year.

The quick price correction didn't make Jabil's stock extremely cheap, either. It trades at 41 times trailing earnings today. That's a lot for a traditional manufacturer that's just getting its feet wet in the high-octane AI pool.