Jacobs Solutions (NYSE:J) Announces Earnings Results

Jacobs Solutions (NYSE:J) issued its earnings results on Tuesday. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.52 by $0.01, FiscalAI reports. The business had revenue of $2.30 billion during the quarter, compared to analysts’ expectations of $3.09 billion. Jacobs Solutions had a return on equity of 19.14% and a net margin of 2.41%.The business’s revenue for the quarter was up 12.3% compared to the same quarter last year. During the same period in the prior year, the business earned $1.33 EPS. Jacobs Solutions updated its FY 2026 guidance to 6.950-7.300 EPS.

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

• Adjusted EPS rose 15% to $1.53 on ~8% adjusted net revenue growth (gross revenue +12%), while Q1 book-to-bill hit 2.0x and backlog grew 21% to a record $26.3 billion, signaling strong demand and momentum.
• Management raised its FY2026 outlook — net revenue growth to 6.5%–10%, adjusted EPS to $6.95–$7.30 (implying ~16% YoY at the midpoint) and free cash flow margin to 7%–8.5% (guidance excludes the PA acquisition).
• Announced agreement to acquire the remaining stake in PA Consulting; Jacobs expects the deal to be accretive to adjusted EPS within 12 months and to deliver $16–20M of cost synergies, but it will temporarily raise net leverage slightly above the 1.0–1.5x target until delevering.
• Q1 free cash flow was $365M (a quarter-end timing item will reverse in Q2), the company increased share repurchases and raised the quarterly dividend 12.5% to $0.36, targeting return of at least 60% of free cash flow to shareholders.
• Broad end‑market strength and marquee awards — life sciences & advanced manufacturing (data centers, semiconductors) led growth, plus major water and critical‑infrastructure wins (e.g., Bolivar Roads Gate, Hut 8 River Bend, Cleveland Hopkins) while PA delivered a 24% operating margin in Q1.

Jacobs Solutions Price Performance

Shares of J stock traded up $4.89 during mid-day trading on Wednesday, hitting $137.80. 515,770 shares of the stock were exchanged, compared to its average volume of 727,738. Jacobs Solutions has a 52-week low of $106.23 and a 52-week high of $168.44. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.61. The company has a market cap of $16.27 billion, a PE ratio of 57.00, a price-to-earnings-growth ratio of 1.48 and a beta of 0.80. The firm has a fifty day moving average of $136.59 and a 200 day moving average of $144.73.

Jacobs Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, February 20th will be given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from Jacobs Solutions’s previous quarterly dividend of $0.32. The ex-dividend date is Friday, February 20th. Jacobs Solutions’s payout ratio is currently 52.89%.

Insider Activity at Jacobs Solutions

In related news, Director Peter J. Robertson purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, November 24th. The stock was bought at an average price of $134.76 per share, with a total value of $134,760.00. Following the acquisition, the director owned 1,000 shares in the company, valued at $134,760. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Manuel J. Fernandez bought 763 shares of the business’s stock in a transaction dated Monday, November 24th. The shares were bought at an average cost of $130.78 per share, with a total value of $99,785.14. Following the purchase, the director directly owned 10,380 shares of the company’s stock, valued at approximately $1,357,496.40. This represents a 7.93% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have purchased 2,513 shares of company stock valued at $335,878. 0.48% of the stock is owned by company insiders.

Institutional Trading of Jacobs Solutions

Several large investors have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC acquired a new stake in Jacobs Solutions in the second quarter valued at $321,000. Moors & Cabot Inc. purchased a new position in Jacobs Solutions in the third quarter valued at approximately $218,000. Flow Traders U.S. LLC acquired a new stake in Jacobs Solutions during the third quarter worth approximately $233,000. DF Dent & Co. Inc. acquired a new position in shares of Jacobs Solutions in the 3rd quarter valued at $222,000. Finally, B. Riley Wealth Advisors Inc. acquired a new stake in Jacobs Solutions during the 2nd quarter worth $287,000. 85.65% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

J has been the subject of a number of recent research reports. Citigroup reduced their target price on shares of Jacobs Solutions from $182.00 to $180.00 and set a “buy” rating for the company in a report on Friday, November 21st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Jacobs Solutions in a research report on Monday, December 29th. Barclays raised their price objective on Jacobs Solutions from $150.00 to $160.00 and gave the stock an “overweight” rating in a research report on Monday, October 20th. Wall Street Zen downgraded Jacobs Solutions from a “strong-buy” rating to a “buy” rating in a report on Sunday, January 25th. Finally, KeyCorp upped their price objective on shares of Jacobs Solutions from $157.00 to $170.00 and gave the company an “overweight” rating in a report on Monday, October 20th. Six analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $156.60.

Key Stories Impacting Jacobs Solutions

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

• Positive Sentiment: Q1 beats and raised outlook — Jacobs posted stronger-than-expected adjusted EPS and revenue for Q1 FY2026 and raised its FY26 view, driven by contributions from Infrastructure & Advanced Facilities and PA Consulting, supporting investor confidence in growth and margins. Jacobs Q1 Earnings & Revenues Top, Both Up Y/Y, FY26 View Raised
• Positive Sentiment: Major contract win — Jacobs was selected to lead engineering design of the Bolivar Roads Gate System (one of the world’s largest coastal storm surge barrier systems) along the Texas Gulf Coast, a high-profile, long-duration program that supports backlog and recurring services. Jacobs to Design One of the World’s Largest Coastal Gate Systems Along Texas Gulf Coast
• Positive Sentiment: Capital return and portfolio moves — Management repurchased $252M of shares in Q1, announced a 12.5% dividend increase, and is completing the PA Consulting transaction to unlock asset‑lifecycle strategy value; backlog grew ~21% y/y with a TTM book-to-bill of ~1.4x. Jacobs Reports Strong Fiscal First Quarter 2026 Results
• Neutral Sentiment: Guidance nuance — Jacobs set FY26 EPS guidance of $6.95–$7.30 (vs. a consensus ~$7.07) and provided revenue guidance of roughly $9.3B–$9.6B; the EPS range overlaps consensus but revenue guidance is below some street estimates, creating mixed signals on near‑term top‑line growth.
• Negative Sentiment: Top-line perception vs. consensus — Some outlets noted reported Q1 revenue of ~$2.30B compared with certain consensus figures around ~$3.09B, a datapoint that may have caused concern about near-term revenue recognition or scope mix despite the EPS beat. Jacobs on MarketBeat

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.