Jacobs Solutions (NYSE:J) Shares Gap Down After Analyst Downgrade

Key Points

• Shares of Jacobs Solutions gapped down after KeyCorp trimmed its price target from $154 to $150 (retaining an overweight rating); the stock opened at $126.62 (prior close $136.55) and traded down roughly 7.1% to about $122.09.
• Jacobs beat Q2 estimates (EPS $1.75 vs. $1.64; revenue $2.33B vs. $2.28B) and raised its 2026 profit forecast on strong AI/data‑center demand, but FY26 revenue guidance (~$13.0B) missed Street expectations (~$13.3B) and GAAP results were hit by a one‑time acquisition charge.
• Analysts maintain a consensus of Moderate Buy with a $152.60 average target despite mixed revisions, insiders executed a small sale, and institutional ownership is high (~85.7%).

Jacobs Solutions Inc. (NYSE:J - Get Free Report) gapped down before the market opened on Wednesday after KeyCorp lowered their price target on the stock from $154.00 to $150.00. The stock had previously closed at $136.55, but opened at $126.62. KeyCorp currently has an overweight rating on the stock. Jacobs Solutions shares last traded at $122.0860, with a volume of 292,471 shares.

Several other analysts also recently issued reports on the stock. Robert W. Baird decreased their price objective on shares of Jacobs Solutions from $130.00 to $126.00 and set a "neutral" rating for the company in a report on Monday, April 13th. Zacks Research raised shares of Jacobs Solutions from a "strong sell" rating to a "hold" rating in a report on Thursday, February 5th. Wells Fargo & Company upped their price objective on shares of Jacobs Solutions from $130.00 to $137.00 and gave the stock an "equal weight" rating in a report on Friday, January 23rd. Finally, Wall Street Zen downgraded shares of Jacobs Solutions from a "strong-buy" rating to a "buy" rating in a report on Saturday, April 18th. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Jacobs Solutions currently has an average rating of "Moderate Buy" and a consensus price target of $152.60.

Insider Activity at Jacobs Solutions

In other news, President Shannon Miller sold 1,440 shares of the firm'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 completion of the transaction, the president directly owned 25,344 shares of the company's stock, valued at approximately $3,399,390.72. This trade represents a 5.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.48% of the company's stock.

Key Jacobs Solutions News

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

• Positive Sentiment: Q2 beat on both EPS and revenue — Jacobs reported $1.75 EPS vs. $1.64 expected and $2.33B revenue vs. $2.28B expected, showing underlying margin and top‑line strength. Jacobs Solutions (J) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Company raised its 2026 profit forecast, citing strong demand for AI/data‑center infrastructure — a demand driver investors favor. Jacobs lifts 2026 profit forecast on strong AI infrastructure demand
• Positive Sentiment: Operational metrics: gross revenue and adjusted net revenue expanded year‑over‑year and adjusted EBITDA increased ~14%, reinforcing underlying growth momentum. Jacobs reports strong fiscal second quarter 2026 results
• Neutral Sentiment: Analyst consensus remains constructive — the street average is around a "Moderate Buy," supporting medium‑term interest. Jacobs Solutions Inc. Receives Average Rating of "Moderate Buy" from Analysts
• Neutral Sentiment: KeyCorp kept an overweight rating but trimmed its price target from $154 to $150 — still implies meaningful upside but the cut is a modest headwind for sentiment. Benzinga note on KeyCorp price target change
• Negative Sentiment: Revenue guidance disappointed relative to consensus — Jacobs gave FY26 revenue roughly $13.0B vs. Street near $13.3B, which likely drove concern about near‑term growth vs. expectations. Jacobs earnings report and guidance details
• Negative Sentiment: GAAP results were hurt by a one‑time acquisition transaction (PA acquisition), producing a GAAP net loss and negative GAAP EPS for the quarter — this accounting hit clouded the otherwise solid adjusted results. Jacobs reports strong fiscal second quarter 2026 results

Hedge Funds Weigh In On Jacobs Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. lifted its holdings in shares of Jacobs Solutions by 110.8% during the 1st quarter. Bessemer Group Inc. now owns 2,900 shares of the company's stock worth $369,000 after acquiring an additional 1,524 shares during the period. Wealthfront Advisers LLC lifted its holdings in shares of Jacobs Solutions by 12.5% during the 1st quarter. Wealthfront Advisers LLC now owns 6,499 shares of the company's stock worth $827,000 after acquiring an additional 721 shares during the period. Illinois Municipal Retirement Fund lifted its holdings in shares of Jacobs Solutions by 11.5% during the 1st quarter. Illinois Municipal Retirement Fund now owns 6,198 shares of the company's stock worth $789,000 after acquiring an additional 637 shares during the period. Checchi Capital Advisers LLC bought a new position in shares of Jacobs Solutions during the 1st quarter worth about $220,000. Finally, Flynn Zito Capital Management LLC lifted its holdings in shares of Jacobs Solutions by 6.0% during the 1st quarter. Flynn Zito Capital Management LLC now owns 1,975 shares of the company's stock worth $251,000 after acquiring an additional 111 shares during the period. 85.65% of the stock is owned by institutional investors.

Jacobs Solutions Stock Down 7.1%

The business's fifty day moving average price is $129.98 and its 200 day moving average price is $137.90. The company has a market capitalization of $14.89 billion, a P/E ratio of 34.68, a P/E/G ratio of 1.35 and a beta of 0.73. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.72.

Jacobs Solutions (NYSE:J - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $1.75 EPS for the quarter, topping analysts' consensus estimates of $1.64 by $0.11. The company had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.28 billion. Jacobs Solutions had a net margin of 3.49% and a return on equity of 20.59%. The firm's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same period last year, the firm earned $1.43 EPS. Jacobs Solutions has set its FY 2026 guidance at 7.100-7.350 EPS. As a group, equities research analysts predict that Jacobs Solutions Inc. will post 7.13 earnings per share for the current fiscal year.

Jacobs Solutions Dividend Announcement

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

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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