Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $15.21B
• Dividend Yield: 0.94%
• Average Volume (3M): 992.24K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.97
• Revenue Growth: -23.00%
• EPS Growth: -61.88%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.53
• Shares Outstanding: 117,446,720
• 10 Day Avg. Volume: 762,827
• 30 Day Avg. Volume: 992,237
• PEG Ratio: -0.98
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 29.23
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 15.47
• 1Y Price Target: $157.40
• Price Target Upside: 21.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.14
• Revenue Forecast (FY): $13.34B

• Rating: 67 Neutral
• Price Target: $151.00 ▲(16.60% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by solid financial performance led by strong cash generation, plus a supportive earnings outlook after raised FY2026 guidance and record backlog. Offsetting factors are an expensive valuation (high P/E) and only neutral technicals with limited momentum.

Positive Factors

Strong free cash flow generation

Consistent high free cash flow and strong cash conversion provide durable funding for dividends, buybacks, and acquisition integration. This reduces external financing dependence, supports reinvestment and deleveraging after the PA transaction, and underpins sustained shareholder returns and balance-sheet flexibility.

Record backlog and healthy book‑to‑bill

A materially larger backlog and above‑par book‑to‑bill provide multi‑quarter revenue visibility and reduce near‑term demand uncertainty. This durable pipeline supports stable staffing utilization, smoother revenue conversion, and visibility into margin recovery as awarded, multi‑year programs ramp to execution.

PA acquisition deepens high‑margin advisory and digital

Full ownership of PA strengthens Jacobs' exposure to higher‑margin consulting, digital and AI services, diversifying revenue mix toward advisory. Expected synergies and accretive EPS promote sustainable margin expansion and higher‑value client engagements across life sciences, advanced manufacturing and critical infrastructure.

Negative Factors

Near‑term leverage uptick from PA financing

Taking on additional debt to fund the PA purchase raises leverage and interest obligations in the near term, constraining financial flexibility. If integration or synergies are delayed, higher leverage could pressure ratings, limit opportunistic investment, and elevate refinancing risk over the next 6–12 months.

Material margin compression versus prior year

Substantially lower net and operating margins versus the prior year indicate weaker bottom‑line conversion. Persistent margin pressure reduces internally generated capital, limits scope for reinvestment or higher cash returns, and suggests structural cost or mix challenges that must be remediated to restore prior profitability.

High pass‑through mix and larger, complex projects

A higher share of pass‑through revenue and larger, more complex programs reduce margin stability and forecasting accuracy. They increase reliance on subcontractors and create cash‑timing variability, elevating execution and working‑capital risk even as reported top‑line growth appears stronger.

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 offers consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. The company was founded in 1947 and is headquartered in Dallas, Texas.

How the Company Makes Money

Jacobs Solutions generates revenue through a diversified business model that includes project-based contracts, long-term service agreements, and consulting fees. Key revenue streams come from government contracts, commercial projects, and partnerships with private sector clients across various industries. The company often collaborates with public entities and private firms to secure large-scale projects, which contribute significantly to its earnings. Additionally, Jacobs Solutions benefits from its extensive global network and reputation, allowing it to capture new business opportunities and maintain steady cash flow.

Jacobs Solutions Financial Statement Overview

Summary

Strong TTM free cash flow and improving momentum support the score, but modest revenue growth and materially lower net/operating margins versus FY2024 temper overall quality. Balance sheet is serviceable, though leverage has trended higher and equity lower versus prior years.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up ~3.0%, showing modest top-line momentum, and gross margin is steady around ~25%. Profitability, however, has compressed versus FY2024: net margin is ~2.4% in both TTM and FY2025 versus ~7.0% in FY2024, and operating profitability is also lower than FY2024 levels. Overall, the income statement reflects stable demand but weaker bottom-line conversion compared with prior-year peak profitability.

Balance Sheet

Leverage is moderate with debt-to-equity around ~0.74 in TTM/FY2025, but it has moved up from the ~0.55–0.60 range in FY2023–FY2024, indicating a less conservative capital structure. Equity has trended down from prior years, which reduces balance-sheet cushion, and returns on equity are modest in TTM (~7.3%) versus stronger FY2024 levels. Overall, the balance sheet looks serviceable, but the direction of leverage and equity is a watch item.

Cash Flow

Cash generation is a clear positive: TTM operating cash flow (~$0.96B) and free cash flow (~$0.88B) are strong, with TTM free cash flow growth up ~44%. Free cash flow is well-supported relative to earnings (free cash flow is ~0.88x net income), suggesting good cash conversion. The main weakness is variability year-to-year (FY2025 free cash flow decline versus FY2024), but the latest TTM shows a notable rebound.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	12.39B	12.03B	11.50B	10.85B	9.78B	14.09B
Gross Profit	3.03B	2.98B	2.83B	2.71B	2.58B	3.04B
EBITDA	1.08B	926.84M	1.26B	996.31M	878.74M	1.02B
Net Income	435.76M	290.25M	806.09M	665.78M	644.04M	477.03M
Balance Sheet
Total Assets	11.61B	11.25B	11.76B	14.62B	14.66B	14.63B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.24B	1.89B	770.85M	1.14B	1.01B
Total Debt	2.96B	2.71B	2.75B	3.47B	4.17B	3.82B
Total Liabilities	7.07B	6.59B	6.37B	7.38B	7.92B	8.00B
Stockholders Equity	3.44B	3.64B	4.55B	6.55B	6.06B	5.94B
Cash Flow
Free Cash Flow	875.29M	607.47M	933.56M	837.28M	347.09M	633.46M
Operating Cash Flow	960.01M	686.70M	1.05B	974.76M	474.71M	726.28M
Investing Cash Flow	-87.67M	-75.29M	-127.19M	-145.66M	-538.42M	-1.38B
Financing Cash Flow	-692.41M	-525.22M	-751.64M	-1.09B	320.23M	798.98M

Jacobs Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 129.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Negative. The current price of 129.5 is below the 20-day moving average (MA) of 135.65, below the 50-day MA of 137.60, and below the 200-day MA of 140.70, indicating a bearish trend. The MACD of -1.57 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for J.

Jacobs Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWR	77 Outperform	$84.82B	62.25	12.60%	0.09%	18.72%	23.97%
MTZ	74 Outperform	$23.43B	42.42	13.08%	―	12.99%	274.10%
TTEK	72 Outperform	$8.65B	21.14	20.29%	0.74%	4.69%	-24.37%
APG	71 Outperform	$17.76B	52.70	9.13%	―	10.69%	―
ACM	68 Neutral	$11.61B	42.33	19.75%	1.06%	0.21%	53.80%
J	67 Neutral	$15.21B	30.11	11.80%	0.94%	-23.00%	-61.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Jacobs Solutions Corporate Events

Jacobs Solutions Prices $1.3 Billion Senior Notes Offering

On March 3, 2026, Jacobs Solutions completed an offering of $1.3 billion in senior unsecured notes, issuing $800 million of 4.750% notes due 2031 and $500 million of 5.375% notes due 2036, fully and unconditionally guaranteed by subsidiary Jacobs Engineering Group Inc. The notes rank pari passu with Jacobs’ other senior unsecured debt, are subject to standard covenants on liens, sale-leasebacks and mergers, and include change-of-control protection requiring a repurchase at 101% if accompanied by a ratings downgrade.

Jacobs plans to use the net proceeds primarily to fund the cash consideration for acquiring the remaining share capital of PA Consulting Group Limited from minority shareholders, with interim use earmarked for repaying amounts outstanding under its revolving credit and term loan facilities. If the PA Consulting acquisition does not close, the company intends to use the proceeds to reduce existing borrowings and for general corporate purposes, indicating a focus on balance sheet management and strategic expansion of its consulting capabilities.

The most recent analyst rating on (J) stock is a Hold with a $144.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Jacobs Issues Senior Notes to Fund PA Consulting Acquisition

On February 24, 2026, Jacobs Solutions Inc. and its subsidiary Jacobs Engineering Group Inc. entered into an agreement with a syndicate of underwriters to issue $800 million of 4.750% Senior Notes due 2031 and $500 million of 5.375% Senior Notes due 2036, guaranteed by the subsidiary. Jacobs expects net proceeds of about $1.286 billion, to be used to finance the cash consideration of its planned acquisition of the remaining shares of PA Consulting, with interim use and potential fallback use of funds directed to repaying borrowings and general corporate purposes.

The notes offering, launched under an existing automatic shelf registration, is expected to close on March 3, 2026, subject to customary conditions and is not contingent on completion of the PA Consulting acquisition. Separately, on February 26, 2026, PA Consulting shareholders overwhelmingly approved the acquisition via a UK scheme of arrangement, with remaining closing conditions including sanction by the High Court of Justice in England and Wales and approval under the UK National Security and Investment Act 2021, underscoring Jacobs’ push to fully consolidate its consulting platform.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Jacobs Solutions Updates Board Committees and Raises Dividend

On January 29, 2026, Jacobs Solutions’ board implemented changes to its board committee structures, including adding Diane Bryant and Julie Sloat to the Audit Committee while removing Priya Abani and Michael Collins, reshuffling membership and leadership of the Human Resource and Compensation Committee following the retirement of Peter Robertson, and appointing Collins to the Sustainability and Risk Committee after Robertson’s departure. Also on January 29, 2026, the board approved a 12.5% increase in the company’s quarterly cash dividend to $0.36 per share, payable on March 20, 2026, to shareholders of record as of February 20, 2026, signaling a strengthened capital-return stance to investors.

The most recent analyst rating on (J) stock is a Hold with a $137.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Jacobs Solutions to Fully Acquire UK’s PA Consulting

On January 2, 2026, Jacobs Solutions agreed to acquire, through its UK subsidiary, all remaining shares in UK-based PA Consulting that it does not already own, in a deal valuing PA at about £3.05 billion and giving Jacobs full ownership of the innovation and transformation consultancy. The upfront consideration for the remaining stake, unanimously approved by Jacobs’ board and PA’s stakeholder representatives, will be roughly £1.216 billion paid 80% in cash and 20% in Jacobs stock, with a further £75 million in deferred share- or cash-based consideration due on the second anniversary of closing, and the transaction is expected to complete by the end of Jacobs’ fiscal second quarter of 2026, subject to a UK scheme of arrangement, court and regulatory approvals in the UK and Denmark. By consolidating PA, Jacobs aims to strengthen its position in higher-margin advisory, digital and AI-driven transformation markets, deepen its presence in resilient sectors such as advanced manufacturing, life sciences and critical infrastructure, streamline governance and unlock cost synergies of £12–15 million within 24 months after closing, with management indicating that full ownership would lift adjusted EBITDA margins and be accretive to adjusted EPS in the first year post-close.

The most recent analyst rating on (J) stock is a Buy with a $163.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.