Want to see J full AI Analyst Report?
Top Page
Jacobs Solutions
(NYSE:J)
Select Model
Select Model
Rating:70Outperform
Price Target:
$157.00
▲(16.68% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong earnings-call momentum (raised guidance, record backlog, and margin expansion) and solid cash generation. These positives are tempered by weaker recent profitability in the financial statements and a demanding valuation (high P/E), while technicals remain supportive with a clear uptrend.
Positive Factors
Cash Generation
Jacobs' sustained FCF (~$645M TTM, +33%) and FCF close to net income (~0.88x) provide durable internal funding. Reliable cash converts earned revenue into liquidity for debt paydown, reinvestment in growth areas, and shareholder returns, supporting multi-quarter financial flexibility.
Negative Factors
Elevated Leverage
Debt-to-equity rising to ~1.24 materially reduces financial flexibility. Higher leverage increases interest and refinancing sensitivity, constrains capital allocation choices (investment, M&A, buybacks) and magnifies downside risk if margins or cash flow soften over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Jacobs' sustained FCF (~$645M TTM, +33%) and FCF close to net income (~0.88x) provide durable internal funding. Reliable cash converts earned revenue into liquidity for debt paydown, reinvestment in growth areas, and shareholder returns, supporting multi-quarter financial flexibility.
Read all positive factors
Jacobs Solutions Key Performance Indicators (KPIs)
Any
Revenue by Geography
Revenue split across regions reveals where Jacobs earns most of its sales and where growth or downside risks are concentrated. Large exposure to the U.S. points to sensitivity to federal, state and municipal infrastructure spending, while strength in international markets shows geographic diversification and different demand cycles.
Revenue split across regions reveals where Jacobs earns most of its sales and where growth or downside risks are concentrated. Large exposure to the U.S. points to sensitivity to federal, state and municipal infrastructure spending, while strength in international markets shows geographic diversification and different demand cycles.
Data provided by:
The Fly
The FlyJacobs Solutions (J) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.93B
Dividend Yield1.01%
Average Volume (3M)1.08M
Price to Earnings (P/E)41.4
Beta (1Y)0.89
Revenue Growth0.95%
EPS Growth-10.51%
CountryUS
Employees47,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.87
Shares Outstanding118,080,880
10 Day Avg. Volume745,701
30 Day Avg. Volume1,077,206
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)4.88
Price to Sales (P/S)1.48
P/FCF Ratio29.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$163.50Price Target Upside21.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)7.26
Revenue Forecast (FY)$9.50B
Jacobs Solutions Business Overview & Revenue Model
Company Description
Jacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company provides consulting, plannin...
How the Company Makes Money
Jacobs primarily makes money by providing fee-based professional services and managing large, multi-year programs for clients, with revenue recognized as work is performed under contracts. Key revenue streams include (1) consulting and engineering...
Jacobs Solutions Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: double-digit adjusted EPS growth, record backlog (+27% to $29B), robust adjusted EBITDA margin expansion (15.2%, +109 bps YoY), accelerating Life Sciences & Advanced Manufacturing (24% YoY) and expanding AI/data center exposure (11% of net revenue). Cash generation and aggressive share repurchases, plus early achievement of leverage targets, further reinforce momentum. Lowlights are limited to sector-specific headwinds in Water & Environmental (near-term low growth), temporary PA timing disruptions from U.K. government changes, some geographic lumpiness (Middle East), and a few one-time reporting adjustments around free cash flow and PA-related GAAP/non-GAAP treatment. Overall, positives materially outweigh the manageable near-term challenges, positioning the company for continued profitable growth into FY '27.Positive Updates
Adjusted EPS Growth
Adjusted EPS increased approximately 14% year-over-year to $1.84 in Q3, marking the sixth straight quarter of double-digit adjusted EPS growth and a third consecutive guidance raise for FY '26.
Negative Updates
Water & Environmental Near-Term Sluggishness
Net revenue growth in Water & Environmental was only a little more than 1% year-over-year in Q3 and the environmental sector faced year-over-year headwinds, although management expects sequential improvement in Q4 driven by recent awards.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted EPS increased approximately 14% year-over-year to $1.84 in Q3, marking the sixth straight quarter of double-digit adjusted EPS growth and a third consecutive guidance raise for FY '26.
Read all positive updates
Company Guidance
Jacobs raised its FY‑26 guidance, now calling for adjusted net revenue growth of 9.5%–10%, an adjusted EBITDA margin of 14.7%–14.8%, adjusted EPS of $7.20–$7.30 (implying nearly 19% y/y EPS growth at the midpoint) and an adjusted free cash flow margin of 8%. For Q4 specifically the company expects ~14% y/y net revenue growth (noting the extra week that normalizes to roughly 8%), an adjusted EBITDA margin of ~16%, a tax rate of ~27.5% and quarterly free cash flow of about $150 million. Through Q3 Jacobs reported $541 million of adjusted FCF (YTD $633M), repurchased $614M of stock in Q3 (total repurchases since FY‑25 of $1.4B) while reducing net leverage to 1.8x with a plan to delever to ~1.5x by end of FY‑27 and to return >100% of FCF to shareholders for the second straight year.Jacobs Solutions Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.22B | 12.03B | 11.50B | 10.85B | 9.78B | 14.09B |
| Gross Profit | 3.14B | 2.98B | 2.83B | 2.71B | 2.58B | 3.04B |
| EBITDA | 904.25M | 926.84M | 1.26B | 996.31M | 878.74M | 1.02B |
| Net Income | 334.61M | 290.25M | 806.09M | 665.78M | 644.04M | 477.03M |
Balance Sheet | ||||||
| Total Assets | 11.74B | 11.25B | 11.76B | 14.62B | 14.66B | 14.63B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 1.24B | 1.89B | 770.85M | 1.14B | 1.01B |
| Total Debt | 4.05B | 2.71B | 2.75B | 3.47B | 4.17B | 3.82B |
| Total Liabilities | 8.49B | 6.59B | 6.37B | 7.38B | 7.92B | 8.00B |
| Stockholders Equity | 3.26B | 3.64B | 4.55B | 6.55B | 6.06B | 5.94B |
Cash Flow | ||||||
| Free Cash Flow | 644.54M | 607.47M | 933.56M | 837.28M | 347.09M | 633.46M |
| Operating Cash Flow | 735.84M | 686.70M | 1.05B | 974.76M | 474.71M | 726.28M |
| Investing Cash Flow | -85.75M | -75.29M | -127.19M | -145.66M | -538.42M | -1.38B |
| Financing Cash Flow | -734.22M | -525.22M | -751.64M | -1.09B | 320.23M | 798.98M |
Jacobs Solutions Technical Analysis
Positive
134.56
Price Trends
128.40
Positive
126.11
Positive
133.07
Positive
Market Momentum
4.51
Negative
69.26
Neutral
64.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Positive. The current price of 134.56 is below the 20-day moving average (MA) of 135.02, above the 50-day MA of 128.40, and above the 200-day MA of 133.07, indicating a bullish trend. The MACD of 4.51 indicates Negative momentum. The RSI at 69.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for J.
Jacobs Solutions Risk Analysis
Jacobs Solutions disclosed 62 risk factors in its most recent earnings report. Jacobs Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jacobs Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.61B | 19.86 | 23.76% | 0.84% | -7.61% | 105.41% | |
70 Outperform | $15.93B | 41.39 | 15.95% | 1.01% | 0.95% | -10.51% | |
70 Outperform | $100.33B | 75.49 | 14.86% | 0.07% | 26.30% | 34.94% | |
66 Neutral | $17.31B | -59.22 | 10.11% | ― | 14.09% | -293.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $9.30B | 17.24 | 21.32% | 1.69% | -0.38% | 2.58% | |
63 Neutral | $21.13B | 41.43 | 14.53% | ― | 23.46% | 86.29% |
* Industrials Sector Average
J
Jacobs Solutions
145.07
-1.26
-0.86%
ACM
Aecom Technology
75.84
-41.83
-35.55%
MTZ
MasTec
272.46
93.40
52.16%
PWR
Quanta Services
671.86
288.07
75.06%
TTEK
Tetra Tech
35.44
-1.09
-2.98%
APG
APi Group
41.72
6.76
19.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.