Jacobs Solutions (NYSE:J) Releases Earnings Results, Beats Expectations By $0.01 EPS

Jacobs Solutions (NYSE:J) posted its earnings results on Tuesday. The company reported $1.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.52 by $0.01, FiscalAI reports. The firm had revenue of $2.30 billion during the quarter, compared to the consensus estimate of $3.09 billion. Jacobs Solutions had a net margin of 3.49% and a return on equity of 20.13%. The company’s revenue was up 12.3% on a year-over-year basis. During the same quarter in the prior year, the company 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 Stock Performance

NYSE:J traded down $1.15 during mid-day trading on Thursday, hitting $142.19. The stock had a trading volume of 68,117 shares, compared to its average volume of 770,142. The stock has a market capitalization of $16.79 billion, a price-to-earnings ratio of 38.89, a P/E/G ratio of 1.44 and a beta of 0.80. The company has a 50 day simple moving average of $136.74 and a 200-day simple moving average of $144.72. Jacobs Solutions has a 52 week low of $106.23 and a 52 week high of $168.44. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.61.

Jacobs Solutions Increases Dividend

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

Insiders Place Their Bets

In other news, Director Peter J. Robertson purchased 1,000 shares of the company’s stock in a transaction on Monday, November 24th. The shares were bought at an average price of $134.76 per share, for a total transaction of $134,760.00. Following the completion of the purchase, the director owned 1,000 shares of the company’s stock, valued at $134,760. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Manuel J. Fernandez acquired 763 shares of Jacobs Solutions stock in a transaction dated Monday, November 24th. The shares were acquired at an average price of $130.78 per share, with a total value of $99,785.14. Following the completion of the transaction, the director owned 10,380 shares of the company’s stock, valued at approximately $1,357,496.40. This trade represents a 7.93% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 2,513 shares of company stock worth $335,878. Insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Jacobs Solutions

Several hedge funds have recently modified their holdings of the company. Ameriprise Financial Inc. boosted its stake in Jacobs Solutions by 828.5% during the second quarter. Ameriprise Financial Inc. now owns 1,326,988 shares of the company’s stock valued at $174,434,000 after buying an additional 1,184,068 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Jacobs Solutions by 68.8% during the second quarter. AQR Capital Management LLC now owns 1,288,843 shares of the company’s stock valued at $168,194,000 after acquiring an additional 525,291 shares during the period. Amundi lifted its position in shares of Jacobs Solutions by 75.1% in the 3rd quarter. Amundi now owns 601,131 shares of the company’s stock valued at $92,109,000 after acquiring an additional 257,767 shares in the last quarter. Bank of America Corp DE boosted its stake in Jacobs Solutions by 9.4% in the 3rd quarter. Bank of America Corp DE now owns 2,070,799 shares of the company’s stock worth $310,330,000 after purchasing an additional 178,753 shares during the period. Finally, Boston Partners boosted its stake in Jacobs Solutions by 3.7% in the 3rd 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 during the period. 85.65% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have weighed in on J shares. Wells Fargo & Company upped their price target on Jacobs Solutions from $130.00 to $137.00 and gave the stock an “equal weight” rating in a report on Friday, January 23rd. Truist Financial reduced their target price on Jacobs Solutions from $163.00 to $152.00 and set a “hold” rating for the company in a research note on Friday, November 21st. Weiss Ratings reissued a “hold (c)” rating on shares of Jacobs Solutions in a research report on Monday, December 29th. Bank of America dropped their price target on shares of Jacobs Solutions from $147.00 to $141.00 and set a “neutral” rating for the company in a research note on Friday, November 21st. Finally, KeyCorp increased their price objective on shares of Jacobs Solutions from $157.00 to $170.00 and gave the company an “overweight” rating in a research note on Monday, October 20th. Six equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $156.60.

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.