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

Jacobs Solutions (NYSE:J) released its earnings results on Tuesday. The company reported $1.75 earnings per share for the quarter, topping analysts’ consensus estimates of $1.64 by $0.11, FiscalAI reports. Jacobs Solutions had a return on equity of 21.75% and a net margin of 2.92%.The business had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.28 billion. During the same period last year, the business earned $1.43 earnings per share. The firm’s revenue for the quarter was up 8.9% compared to the same quarter last year. 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

J traded down $6.43 during midday trading on Thursday, reaching $120.19. 973,457 shares of the company’s stock were exchanged, compared to its average volume of 950,192. The firm has a market capitalization of $14.12 billion, a price-to-earnings ratio of 37.29, a price-to-earnings-growth ratio of 1.41 and a beta of 0.73. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.72. Jacobs Solutions has a one year low of $119.22 and a one year high of $168.44. The business has a 50-day simple moving average of $129.88 and a two-hundred day simple moving average of $137.69.

Jacobs Solutions Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, May 22nd will be paid 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 yield of 1.2%. Jacobs Solutions’s dividend payout ratio (DPR) is currently 39.45%.

Wall Street Analysts Forecast Growth

J has been the topic of a number of recent research reports. Citigroup lifted their target price on Jacobs Solutions from $180.00 to $181.00 and gave the stock a “buy” rating in a research report on Wednesday. Wells Fargo & Company cut their price target on shares of Jacobs Solutions from $137.00 to $131.00 and set an “equal weight” rating for the company in a research note on Thursday. Robert W. Baird cut their price target on shares of Jacobs Solutions from $130.00 to $126.00 and set a “neutral” rating for the company in a research note on Monday, April 13th. KeyCorp cut their price target on shares of Jacobs Solutions from $154.00 to $150.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Wall Street Zen cut shares of Jacobs Solutions from a “strong-buy” rating to a “buy” rating in a research note on Saturday, April 18th. Six equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Jacobs Solutions presently has a consensus rating of “Moderate Buy” and an average target price of $153.40.

Jacobs Solutions News Summary

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

• Positive Sentiment: Q2 results beat expectations, EPS $1.75 vs. $1.64 consensus, adjusted revenue and backlog strength (record $27B); management raised FY2026 profit outlook citing strong AI/data‑center demand. Jacobs lifts 2026 profit forecast
• Positive Sentiment: Citigroup moved to a Buy and raised its price target to $181, signaling large upside vs. the recent market price and reflecting confidence in growth prospects. Citigroup Issues Positive Forecast
• Positive Sentiment: Royal Bank of Canada raised its target to $169 and kept an Outperform rating, another bullish analyst action supporting medium‑term upside. RBC raises price target
• Neutral Sentiment: Zacks published bullish commentary highlighting above‑average financial growth and three reasons Jacobs could be a solid growth holding — useful context but not immediate market moving news. Is Jacobs a solid growth stock?
• Neutral Sentiment: Zacks also ran a valuation comparison (J vs. IBP), offering perspective for value‑oriented investors but not a direct catalyst. J vs IBP valuation
• Neutral Sentiment: Full earnings materials and the call transcript/slide deck are available for investors who want granular color on backlog, segment trends and the FY26 guide. Q2 results press release
• Negative Sentiment: Wells Fargo cut its price target from $137 to $131 and set an Equal Weight rating — a notable downgrade that can pressure the stock short term. Wells Fargo lowers target
• Negative Sentiment: KeyCorp trimmed its target from $154 to $150 (still Overweight), signaling slightly less optimism and contributing to mixed analyst messaging. KeyCorp trims target
• Negative Sentiment: Although EPS beat, Jacobs set FY2026 revenue guidance that was modest vs. some analyst expectations (guidance cited ~$13.0B vs. street ~$13.3B), which likely tempered enthusiasm and led to profit‑taking. Guidance & slide deck

Insider Buying and Selling

In other news, President Shannon Miller sold 1,440 shares of Jacobs Solutions stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $134.13, for a total value of $193,147.20. Following the completion of the transaction, the president owned 25,344 shares in the company, valued at approximately $3,399,390.72. The trade was a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of J. Measured Wealth Private Client Group LLC bought a new position in shares of Jacobs Solutions in the third quarter valued at approximately $27,000. Wealth Watch Advisors INC bought a new position in shares of Jacobs Solutions in the third quarter valued at approximately $33,000. Parkside Financial Bank & Trust raised its stake in shares of Jacobs Solutions by 39.8% in the fourth quarter. Parkside Financial Bank & Trust now owns 460 shares of the company’s stock valued at $61,000 after acquiring an additional 131 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Jacobs Solutions in the fourth quarter valued at approximately $71,000. Finally, Larson Financial Group LLC raised its stake in shares of Jacobs Solutions by 105.2% in the third quarter. Larson Financial Group LLC now owns 509 shares of the company’s stock valued at $76,000 after acquiring an additional 261 shares during the last quarter. Institutional investors own 85.65% of the company’s stock.

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.