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

Jacobs Solutions (NYSE:J) released its earnings results on Tuesday. The company reported $1.75 EPS for the quarter, topping analysts’ consensus estimates of $1.64 by $0.11, FiscalAI reports. Jacobs Solutions had a net margin of 3.49% and a return on equity of 20.59%. The business had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.28 billion. 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 Trading Up 4.2%

Shares of J stock traded up $5.50 during trading hours on Tuesday, reaching $136.24. 3,010,743 shares of the stock traded hands, compared to its average volume of 916,132. Jacobs Solutions has a 1-year low of $117.36 and a 1-year high of $168.44. The business has a fifty day moving average price of $130.01 and a 200 day moving average price of $138.07. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $16.00 billion, a PE ratio of 37.32, a PEG ratio of 1.33 and a beta of 0.73.

Jacobs Solutions Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, May 22nd will be issued 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 payout ratio is currently 39.45%.

Insider Activity

In other news, President Shannon Miller sold 1,440 shares of the business’s stock in a transaction that occurred on 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 owned 25,344 shares in the company, valued at $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 Securities & Exchange Commission, which can be accessed through the SEC website. 0.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. State Street Corp raised its position in Jacobs Solutions by 3.4% during the fourth quarter. State Street Corp now owns 7,367,828 shares of the company’s stock valued at $975,942,000 after buying an additional 243,345 shares during the period. Morgan Stanley raised its position in Jacobs Solutions by 19.5% during the fourth quarter. Morgan Stanley now owns 3,379,681 shares of the company’s stock valued at $447,673,000 after buying an additional 552,277 shares during the period. Boston Partners raised its position in Jacobs Solutions by 3.7% during the third quarter. Boston Partners now owns 3,040,383 shares of the company’s stock valued at $456,746,000 after buying an additional 108,134 shares during the period. Invesco Ltd. raised its position in Jacobs Solutions by 5.4% during the fourth quarter. Invesco Ltd. now owns 2,646,374 shares of the company’s stock valued at $350,539,000 after buying an additional 135,585 shares during the period. Finally, Bank of America Corp DE raised its position in Jacobs Solutions by 9.4% during the third quarter. Bank of America Corp DE now owns 2,070,799 shares of the company’s stock valued at $310,330,000 after buying an additional 178,753 shares during the period. 85.65% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

J has been the topic of a number of research reports. Robert W. Baird dropped their target price on shares of Jacobs Solutions from $130.00 to $126.00 and set a “neutral” rating on the stock in a report on Monday, April 13th. Wall Street Zen lowered Jacobs Solutions from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 18th. Wells Fargo & Company boosted their target price on Jacobs Solutions from $130.00 to $137.00 and gave the stock an “equal weight” rating in a research report on Friday, January 23rd. Finally, Zacks Research raised Jacobs Solutions from a “strong sell” rating to a “hold” rating in a research report on Thursday, February 5th. Six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Jacobs Solutions has an average rating of “Moderate Buy” and a consensus price target of $154.60.

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.