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

Key Points

• Beat and raised guidance: Jacobs reported adjusted Q2 EPS of $1.75, beating consensus by $0.11, and updated FY26 guidance to $7.10–$7.35 while lifting organic revenue and margin targets and upgrading FY29 profitability goals.
• AI and data‑center momentum: Data‑center revenue grew >100% YoY, the AI ecosystem now represents ~10–11% of revenue and is growing >40%, and backlog rose 22% to $27 billion, driven by a ~1.4x 12‑month book‑to‑bill.
• PA Consulting deal and capital actions: The PA acquisition is now consolidated (PA ~22% operating margin, >$20M annual synergies identified by FY27), but Q2 showed a $272M adjusted free cash outflow mainly from PA timing; Jacobs repurchased $472M of stock and targets net leverage below 2.0x by year‑end.

Jacobs Solutions (NYSE:J - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $1.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.64 by $0.11, FiscalAI reports. The business had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.28 billion. Jacobs Solutions had a return on equity of 20.59% and a net margin of 3.49%. 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 up $5.50 during midday trading on Tuesday, reaching $136.24. 3,010,743 shares of the company were exchanged, compared to its average volume of 916,132. Jacobs Solutions has a 12 month low of $117.36 and a 12 month high of $168.44. The company has a market cap of $16.00 billion, a P/E ratio of 37.32, a PEG ratio of 1.33 and a beta of 0.73. The company's 50 day moving average price is $130.01 and its two-hundred day moving average price is $138.07. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.33 and a current ratio of 1.33.

Jacobs Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders 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 payout ratio is 39.45%.

Insider Activity at Jacobs Solutions

In other Jacobs Solutions news, President Shannon Miller sold 1,440 shares of the business's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $134.13, for a total transaction of $193,147.20. Following the sale, the president directly owned 25,344 shares in the company, valued at approximately $3,399,390.72. The trade was a 5.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.48% of the company's stock.

Institutional Trading of Jacobs Solutions

Hedge funds and other institutional investors have recently modified their holdings of the company. Measured Wealth Private Client Group LLC bought a new stake in shares of Jacobs Solutions in the 3rd quarter worth $27,000. Wealth Watch Advisors INC bought a new stake in shares of Jacobs Solutions in the 3rd quarter worth $33,000. Parkside Financial Bank & Trust raised its stake in shares of Jacobs Solutions by 39.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 460 shares of the company's stock worth $61,000 after buying an additional 131 shares in the last quarter. Larson Financial Group LLC raised its stake in shares of Jacobs Solutions by 105.2% in the 3rd quarter. Larson Financial Group LLC now owns 509 shares of the company's stock worth $76,000 after buying an additional 261 shares in the last quarter. Finally, Los Angeles Capital Management LLC bought a new stake in shares of Jacobs Solutions in the 4th quarter worth $71,000. Institutional investors own 85.65% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages 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. Robert W. Baird reduced their price objective on Jacobs Solutions from $130.00 to $126.00 and set a "neutral" rating for the company in a research report on Monday, April 13th. Wells Fargo & Company lifted their target price on Jacobs Solutions from $130.00 to $137.00 and gave the company an "equal weight" rating in a research note on Friday, January 23rd. Finally, Wall Street Zen cut Jacobs Solutions from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 18th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $154.60.

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.

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