Jacobs Solutions (NYSE:J) Announces Earnings Results

Jacobs Solutions (NYSE:J) released its earnings results on Tuesday. The company reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.83 by $0.01, FiscalAI reports. Jacobs Solutions had a net margin of 2.92% and a return on equity of 22.29%. 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 business earned $1.62 earnings per share. The business’s revenue 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

J traded up $1.53 during midday trading on Wednesday, reaching $144.21. The company had a trading volume of 481,591 shares, compared to its average volume of 1,058,219. The business has a 50-day moving average of $127.08 and a two-hundred day moving average of $129.14. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 1.24. Jacobs Solutions has a 1 year low of $105.68 and a 1 year high of $168.44. The company has a market cap of $17.03 billion, a P/E ratio of 44.79, a P/E/G ratio of 1.35 and a beta of 0.68.

Jacobs Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 21st will be given a $0.36 dividend. The ex-dividend date is Friday, August 21st. This represents a $1.44 dividend on an annualized basis and a yield of 1.0%. Jacobs Solutions’s dividend payout ratio is presently 44.72%.

Insider Transactions at Jacobs Solutions

In related news, CEO Robert V. Pragada acquired 3,601 shares of the stock in a transaction dated Friday, May 15th. The shares were purchased at an average cost of $111.09 per share, with a total value of $400,035.09. Following the transaction, the chief executive officer directly owned 333,755 shares in the company, valued at approximately $37,076,842.95. This represents a 1.09% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Manuel J. Fernandez acquired 403 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average price of $121.93 per share, with a total value of $49,137.79. Following the completion of the purchase, the director owned 12,251 shares in the company, valued at $1,493,764.43. This trade represents a 3.40% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 4,257 shares of company stock worth $477,651. Insiders own 0.48% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. State Street Corp increased its holdings in shares of Jacobs Solutions by 3.4% during the fourth quarter. State Street Corp now owns 7,367,828 shares of the company’s stock valued at $975,942,000 after acquiring an additional 243,345 shares in the last quarter. Morgan Stanley grew its position in Jacobs Solutions by 19.5% in the fourth quarter. Morgan Stanley now owns 3,379,681 shares of the company’s stock worth $447,673,000 after acquiring an additional 552,277 shares in the last quarter. Boston Partners boosted its holdings in Jacobs Solutions by 3.7% in the third quarter. Boston Partners now owns 3,040,383 shares of the company’s stock worth $456,746,000 after purchasing an additional 108,134 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Jacobs Solutions by 5.4% during the 4th quarter. Invesco Ltd. now owns 2,646,374 shares of the company’s stock valued at $350,539,000 after acquiring an additional 135,585 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in Jacobs Solutions by 9.4% during the third quarter. Bank of America Corp DE now owns 2,070,799 shares of the company’s stock valued at $310,330,000 after purchasing an additional 178,753 shares during the last quarter. 85.65% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Wells Fargo & Company lowered their price target 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. KeyCorp dropped 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 note on Wednesday, May 6th. Royal Bank Of Canada raised their price target on shares of Jacobs Solutions from $169.00 to $171.00 and gave the company an “outperform” rating in a research report on Wednesday, July 22nd. Robert W. Baird cut their target price on Jacobs Solutions from $130.00 to $126.00 and set a “neutral” rating on the stock in a research note on Monday, April 13th. Finally, Wall Street Zen cut Jacobs Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $153.30.

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.