Jacobs Solutions (NYSE:J) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Jacobs Solutions (NYSE:J) issued its earnings results on Tuesday. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.64 by $0.11, FiscalAI reports. Jacobs Solutions had a net margin of 3.49% and a return on equity of 20.59%. The business had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.28 billion. During the same period in the previous year, the business earned $1.43 EPS. The firm’s revenue was up 8.9% on a year-over-year basis. Jacobs Solutions updated its FY 2026 guidance to 7.100-7.350 EPS.

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

• Strong Q2 operational performance — Adjusted EPS rose 22% to $1.75, organic net revenue grew 9%, margins expanded ~70 bps year-over-year, and backlog increased 22% to $27 billion (12?month book?to?bill 1.4x gross / 1.2x net).
• AI and data?center momentum — Data center revenue grew >100% YoY, the broader AI ecosystem represents ~10–11% of revenue and is growing >40%, the AI/data?center pipeline rose ~400% YoY, and Jacobs highlights a strategic NVIDIA partnership.
• PA Consulting acquisition now complete — PA is fully consolidated with ~22% operating margin, management expects high?single?digit revenue growth for PA, identified >$20M of annual synergies by FY27, and the deal is positioned to boost capabilities and margins.
• Guidance and longer?term targets lifted — FY26 organic net revenue growth raised to 8–10.5%, adjusted EBITDA margin to 14.6–14.9%, adjusted EPS to $7.10–$7.35; FY29 targets upgraded to 17%+ EBITDA margin and ~11% FCF margin (~$1.2–$1.3B FCF).
• Cash flow and capital allocation note — Q2 adjusted free cash outflow of $272M was driven largely by one?time PA transaction timing and accounting items (?$233M impact), H1 adjusted FCF was $93M, Jacobs repurchased $472M of stock in H1, and net leverage is 2.1x with a plan to return below 2.0x by year?end and toward ~1.5x in FY27.

Jacobs Solutions Price Performance

Shares of J stock traded down $11.13 during trading hours on Wednesday, reaching $125.43. 1,440,111 shares of the company were exchanged, compared to its average volume of 922,311. Jacobs Solutions has a fifty-two week low of $118.04 and a fifty-two week high of $168.44. The stock’s fifty day moving average is $129.98 and its two-hundred day moving average is $137.90. The company has a market cap of $14.73 billion, a price-to-earnings ratio of 34.41, a P/E/G ratio of 1.35 and a beta of 0.73. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.33 and a quick ratio of 1.33.

Jacobs Solutions Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, May 22nd will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Friday, May 22nd. Jacobs Solutions’s dividend payout ratio is presently 39.45%.

Key Stories Impacting Jacobs Solutions

Here are the key news stories impacting Jacobs Solutions this week:

• Positive Sentiment: Q2 results beat expectations — EPS $1.75 vs. $1.64 est. and revenue of $2.33B (up 8.9% y/y); adjusted EBITDA and revenue growth were highlighted by management as strong operational signals. J Beats Q2 Estimates
• Positive Sentiment: Jacobs raised its FY?2026 EPS guidance to a midpoint consistent with analyst expectations and cited strong demand for AI/data?center infrastructure — management lifted annual profit forecast. Jacobs lifts 2026 profit forecast
• Positive Sentiment: Royal Bank of Canada raised its price target to $169 and kept an Outperform rating, pointing to meaningful upside vs. current levels. RBC raises price target
• Neutral Sentiment: Analysts’ consensus remains constructive (average rating ~“Moderate Buy”) and the company hosted an earnings call/transcript for investors to parse forward commentary. Analyst average rating Q2 earnings call transcript
• Negative Sentiment: Revenue guidance came in light relative to Street expectations (company issued ~$13.0B revenue guidance vs. consensus nearer $13.3B), which may pressure near?term sentiment. Q2 results & guidance
• Negative Sentiment: GAAP net loss and negative EPS (driven by acquisition-related transaction charges) introduce short-term earnings volatility and likely investor concern about near-term cash/earnings impact. GAAP loss details
• Negative Sentiment: KeyCorp trimmed its price target (to $150) despite keeping an Overweight rating, adding mixed analyst signals that may amplify volatility. KeyCorp price target cut

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on J. Zacks Research upgraded shares of Jacobs Solutions from a “strong sell” rating to a “hold” rating in a research report on Thursday, February 5th. Wall Street Zen lowered shares of Jacobs Solutions from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 18th. Royal Bank Of Canada lifted their target price on shares of Jacobs Solutions from $160.00 to $169.00 and gave the company an “outperform” rating in a research report on Wednesday. KeyCorp decreased their target price on shares of Jacobs Solutions from $154.00 to $150.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Wells Fargo & Company lifted their target price on shares of Jacobs Solutions from $130.00 to $137.00 and gave the company an “equal weight” rating in a research report on Friday, January 23rd. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Jacobs Solutions has an average rating of “Moderate Buy” and an average price target of $153.90.

Insider Activity

In other news, President Shannon Miller sold 1,440 shares of the company’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $134.13, for a total transaction of $193,147.20. Following the transaction, the president directly owned 25,344 shares in the company, valued at approximately $3,399,390.72. This represents a 5.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Jacobs Solutions

A number of large investors have recently modified their holdings of J. Sivia Capital Partners LLC acquired a new position in Jacobs Solutions in the second quarter valued at approximately $321,000. First Citizens Bank & Trust Co. lifted its holdings in Jacobs Solutions by 4.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 2,168 shares of the company’s stock valued at $287,000 after buying an additional 99 shares during the period. Evolve Private Wealth LLC acquired a new position in Jacobs Solutions in the fourth quarter valued at approximately $281,000. Engineers Gate Manager LP acquired a new position in Jacobs Solutions in the fourth quarter valued at approximately $262,000. Finally, Voleon Capital Management LP acquired a new position in Jacobs Solutions in the third quarter valued at approximately $256,000. 85.65% of the stock is currently owned by institutional investors and hedge funds.

Jacobs Solutions Company Profile

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.