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Jacobs Solutions: Hold Rating Amid Mixed Performance and Future Uncertainties

Jacobs Solutions: Hold Rating Amid Mixed Performance and Future Uncertainties

William Blair analyst Louie DiPalma has maintained their neutral stance on J stock, giving a Hold rating today.

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Louie DiPalma has given his Hold rating due to a combination of factors influencing Jacobs Solutions’ current and future performance. Although the company has shown positive signs with its infrastructure growth and benefits from government stimulus and on-shoring trends, there are concerns regarding the mixed results from the fourth quarter and the fiscal 2026 outlook. The company’s revenue and EBITDA margin guidance for fiscal 2026 were above expectations, yet the anticipated growth is expected to be more pronounced in the latter part of the year.
Despite the promising growth in critical infrastructure and advanced facilities, there is a noted decline in water and environmental revenue, and a slowdown in PA Consulting’s revenue growth. Additionally, while the adjusted EPS for the fourth quarter exceeded consensus, the adjusted EBITDA fell short of expectations. These mixed signals contribute to the Hold rating, as the potential for growth is tempered by uncertainties and current performance metrics.

DiPalma covers the Technology sector, focusing on stocks such as AST SpaceMobile, ViaSat, and Rekor Systems. According to TipRanks, DiPalma has an average return of -2.6% and a 52.94% success rate on recommended stocks.

In another report released today, Robert W. Baird also downgraded the stock to a Hold with a $146.00 price target.

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