Jacobs Solutions (NYSE:J) Announces Earnings Results

Jacobs Solutions (NYSE:J) posted its quarterly earnings results on Tuesday. The company reported $1.84 EPS for the quarter, topping analysts’ consensus estimates of $1.83 by $0.01, FiscalAI reports. Jacobs Solutions had a return on equity of 23.60% and a net margin of 2.40%.The firm had revenue of $2.42 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the company earned $1.62 earnings per share. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. Jacobs Solutions updated its FY 2026 guidance to 7.200-7.300 EPS.

Here are the key takeaways from Jacobs Solutions’ conference call:

• Jacobs raised its FY2026 outlook for the third consecutive time, increasing adjusted net revenue growth to 9.5%–10%, adjusted EPS to $7.20–$7.30, and adjusted free cash flow margin to 8%. Management expects approximately 14% net revenue growth and a 16% adjusted EBITDA margin in Q4.
• Q3 adjusted EPS rose 14% to $1.84, while adjusted net revenue grew more than 8% organically and adjusted EBITDA margin expanded 109 basis points year over year to 15.2%. Share repurchases and operating leverage also supported earnings growth.
• Backlog reached a record $29 billion, up 27% year over year, with trailing book-to-bill of 1.4x on gross revenue and 1.2x on net revenue. Strong awards in advanced manufacturing, environmental services, transportation, water, and AI data centers provide management with increased visibility into FY2027 growth.
• AI infrastructure remains a major growth engine, with direct AI build-out revenue reaching 11% of adjusted net revenue and the related pipeline expanding significantly. Jacobs cited major data-center and semiconductor opportunities, including a sole-source EPCM contract for Hut 8’s planned 1-gigawatt Texas campus.
• Water and environmental revenue grew only slightly, at just over 1%, because of continued environmental-sector headwinds, while PA Consulting faced temporary project-start delays following a change in U.K. government leadership. Management expects improvement in both areas, but the timing and conversion of awards remain execution considerations.

Jacobs Solutions Stock Performance

Shares of J traded down $1.32 during trading hours on Thursday, hitting $143.35. The stock had a trading volume of 167,680 shares, compared to its average volume of 1,059,467. The stock has a fifty day moving average price of $127.65 and a 200 day moving average price of $129.16. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.43 and a quick ratio of 1.43. The firm has a market capitalization of $16.93 billion, a PE ratio of 50.80, a PEG ratio of 1.38 and a beta of 0.68. Jacobs Solutions has a 12 month low of $105.68 and a 12 month high of $168.44.

Jacobs Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, August 21st will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, August 21st. Jacobs Solutions’s payout ratio is presently 51.06%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on J. Wall Street Zen cut Jacobs Solutions from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Truist Financial reduced their price objective on shares of Jacobs Solutions from $150.00 to $149.00 and set a “hold” rating for the company in a research note on Thursday, July 2nd. Weiss Ratings reissued a “hold (c-)” rating on shares of Jacobs Solutions in a report on Monday. Royal Bank Of Canada upped their price target on shares of Jacobs Solutions from $171.00 to $174.00 and gave the stock an “outperform” rating in a report on Wednesday. Finally, Wells Fargo & Company reduced their target price on Jacobs Solutions from $137.00 to $131.00 and set an “equal weight” rating for the company in a research report on Thursday, May 7th. Five equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $152.22.

Insider Buying and Selling

In other Jacobs Solutions news, Director Manuel J. Fernandez purchased 253 shares of Jacobs Solutions stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average cost of $112.56 per share, for a total transaction of $28,477.68. Following the completion of the acquisition, the director owned 12,504 shares in the company, valued at $1,407,450.24. This represents a 2.07% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Robert V. Pragada bought 3,601 shares of Jacobs Solutions stock in a transaction on Friday, May 15th. The stock was purchased at an average price of $111.09 per share, with a total value of $400,035.09. Following the completion of the acquisition, the chief executive officer directly owned 333,755 shares of the company’s stock, valued at $37,076,842.95. This represents a 1.09% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have acquired 4,257 shares of company stock worth $477,651. 0.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in J. Pacer Advisors Inc. increased its stake in shares of Jacobs Solutions by 20.5% during the fourth quarter. Pacer Advisors Inc. now owns 11,665 shares of the company’s stock worth $1,545,000 after purchasing an additional 1,981 shares in the last quarter. Invesco Ltd. raised its stake in Jacobs Solutions by 5.4% in the 4th quarter. Invesco Ltd. now owns 2,646,374 shares of the company’s stock valued at $350,539,000 after purchasing an additional 135,585 shares during the last quarter. Alpine Woods Capital Investors LLC boosted its stake in Jacobs Solutions by 37.6% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 17,877 shares of the company’s stock worth $2,368,000 after purchasing an additional 4,887 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in Jacobs Solutions by 140.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 68,800 shares of the company’s stock worth $9,113,000 after purchasing an additional 40,143 shares during the last quarter. Finally, First Citizens Bank & Trust Co. boosted its position in Jacobs Solutions by 4.8% during the fourth quarter. First Citizens Bank & Trust Co. now owns 2,168 shares of the company’s stock worth $287,000 after acquiring an additional 99 shares during the last quarter. 85.65% of the stock is currently owned by institutional investors and hedge funds.

About Jacobs Solutions

Jacobs Solutions Inc, commonly known as Jacobs, is a global professional services firm that provides technical, engineering, scientific and project delivery expertise across a broad range of industries. Founded in 1947 by Joseph J. Jacobs in Pasadena, California, the company evolved from a regional engineering consultancy into a diversified provider of design, program and construction management, operations and maintenance, and scientific services for complex infrastructure and industrial programs.