Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $16.62B
• Dividend Yield: 0.94%
• Average Volume (3M): 904.43K
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.96
• Revenue Growth: -23.00%
• EPS Growth: -61.88%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Services
• EPS (TTM): 1.53
• Shares Outstanding: 117,446,720
• 10 Day Avg. Volume: 1,139,789
• 30 Day Avg. Volume: 904,435
• 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: 1.06
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 5.85
• Enterprise Value/Ebitda: 16.39
• 1Y Price Target: $157.40
• Price Target Upside: 14.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.14
• Revenue Forecast (FY): $13.34B

• Rating: 70 Outperform
• Price Target: $158.00 ▲(14.55% Upside)
• Action: Upgraded Date: 02/05/26
• Date: Action: Upgraded 02/05/26

The score is driven primarily by strong cash flow and a constructive earnings outlook with raised FY2026 guidance and record backlog, which offset weaker profitability versus FY2024 and a less conservative balance-sheet trend. Technicals are moderately supportive, while valuation (high P/E and low yield) is the biggest constraint on the overall rating.

Positive Factors

Free cash flow strength

Sustained, high-quality cash generation (TTM FCF growth ~44% and FCF roughly 0.88x net income) provides durable financial flexibility. It supports investment, dividend increases and share returns, cushions execution volatility, and funds integration of strategic acquisitions without immediate dilutive financing.

Record backlog and award visibility

A record $26.3B backlog and book‑to‑bill above 1.0 indicate multiquarter revenue visibility and strong win momentum across end markets. This backlog underpins predictable top-line conversion, supports multi-year resource planning, and reduces near‑term revenue volatility from discrete project timing.

Strategic PA Consulting acquisition

Full ownership of PA deepens high‑margin advisory, digital and AI capabilities, which structurally raises mix toward higher‑value services. Accretive economics and targeted synergies should lift adjusted margins and enhance long‑term differentiation in digital, life sciences and critical infrastructure markets.

Negative Factors

Material margin compression

Net margin decline from ~7.0% to ~2.4% reflects weaker bottom‑line conversion and removes a sizable profitability cushion. Lower margins constrain reinvestment and capital returns, making the company more sensitive to cost inflation, pass‑through mix and execution setbacks until structural recovery of margins occurs.

Rising leverage and thinner equity cushion

An upward trend in leverage and falling equity reduce financial flexibility and increase sensitivity to cash‑timing shocks. The PA acquisition temporarily elevates net leverage above targets, narrowing room for opportunistic investment or additional buybacks during cyclical slowdowns before leverage normalizes.

Pass‑through mix and project complexity risk

A greater share of pass‑through revenue and larger, more complex programs elevates execution, margin and working capital variability. Even with subcontractor risk transfer, these structural program dynamics can dilute realized margins, extend cash conversion cycles and raise the probability of contract disputes or schedule delays.

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 cash generation is the key strength (TTM free cash flow up ~44% and solid cash conversion), helping offset weaker profitability versus FY2024 (net margin ~2.4% vs ~7.0%). Balance sheet is serviceable but trending less conservative with higher leverage and lower equity.

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: 137.93
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 137.93 is below the 20-day moving average (MA) of 139.13, above the 50-day MA of 137.43, and below the 200-day MA of 139.88, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 is Neutral, 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
APG	79 Outperform	$19.22B	122.24	8.71%	―	10.69%	―
PWR	76 Outperform	$77.44B	76.37	12.65%	0.09%	18.72%	23.97%
TTEK	72 Outperform	$9.64B	27.72	19.90%	0.74%	4.69%	-24.37%
J	70 Outperform	$16.62B	38.83	12.01%	0.94%	-23.00%	-61.88%
ACM	69 Neutral	$12.33B	21.89	27.11%	1.06%	0.21%	53.80%
MTZ	66 Neutral	$20.84B	65.53	11.18%	―	12.99%	274.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Jacobs Solutions Corporate Events

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.

Jacobs Solutions Expands Board with Tech Executive

On November 18, 2025, Jacobs Solutions Inc. expanded its Board of Directors by appointing Diane Bryant, a seasoned technology executive with extensive experience in the semiconductor, cloud computing, and AI sectors. Her appointment underscores Jacobs’ strategic emphasis on innovation and digital transformation, aligning with the company’s commitment to addressing complex challenges through technology-enabled solutions.

The most recent analyst rating on (J) stock is a Buy with a $157.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.