Jacobs Solutions (J)
NYSE:J
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Jacobs Solutions
(NYSE:J)
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Rating:68Neutral
Price Target:
$140.00
â–²(10.07% Upside)
Action:ReiteratedDate:03/18/26
The score is driven primarily by strong cash flow and an upbeat earnings outlook with raised FY2026 guidance and record backlog. Offsetting this, technicals remain weak (below key moving averages with negative MACD) and valuation is relatively rich at ~30x earnings, while profitability is still below FY2024 levels.
Positive Factors
Cash generation
Sustained high operating and free cash flow with strong TTM growth underpins durable financial flexibility. Reliable cash conversion supports dividends, buybacks and M&A funding (e.g., PA deal) while cushioning project working-capital swings and enabling reinvestment in capabilities.
Negative Factors
Rising leverage
Leverage trending higher reduces balance‑sheet cushion and financial flexibility. With new term loans, senior notes and PA acquisition funding, interest and covenant sensitivity increase, limiting optionality for opportunistic investment or accelerated capital returns during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained high operating and free cash flow with strong TTM growth underpins durable financial flexibility. Reliable cash conversion supports dividends, buybacks and M&A funding (e.g., PA deal) while cushioning project working-capital swings and enabling reinvestment in capabilities.
Read all positive factors
Jacobs Solutions (J) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.94B
Dividend Yield0.94%
Average Volume (3M)907.31K
Price to Earnings (P/E)30.1
Beta (1Y)0.97
Revenue Growth-23.00%
EPS Growth-61.88%
CountryUS
Employees45,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.53
Shares Outstanding117,446,720
10 Day Avg. Volume1,031,688
30 Day Avg. Volume907,311
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)4.88
Price to Sales (P/S)1.48
P/FCF Ratio29.23
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit5.43
Enterprise Value/Ebitda15.22
Forecast
1Y Price Target
$157.40Price Target Upside23.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.14
Revenue Forecast (FY)$9.71B
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,...
How the Company Makes Money
Jacobs makes money primarily by delivering fee-based professional services and program delivery work under contracts with government agencies and commercial customers. Revenue is largely generated through (1) consulting, engineering, and design fe...
Jacobs Solutions Key Performance Indicators (KPIs)
Jacobs Solutions Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a strong operating quarter with multiple positive datapoints: record backlog (+21% to $26.3B), double‑digit adjusted EPS growth (+15%), raised FY2026 guidance (revenue, EPS, and FCF margin), robust free cash flow ($365M) and strategic ownership consolidation of PA Consulting (high margins and accretive synergies). The key near‑term negatives were mostly timing and structural (higher pass‑through revenue on some large wins, a Q2 cash timing/tax reversal, temporary leverage uptick from the PA deal, and lingering environmental services headwinds). Overall, the favorable metrics, upgraded guidance, strong cash generation and strategic rationale for the PA acquisition outweigh the largely manageable or temporary lowlights.Positive Updates
Record Backlog and Strong Book-to-Bill
Consolidated backlog grew 21% year‑over‑year to a record $26.3 billion; trailing twelve‑month book‑to‑bill rose to 1.4x and quarterly book‑to‑bill strengthened to 2.0x, indicating robust award activity and revenue visibility.
Negative Updates
Higher Pass‑Through Revenue Impacting Net‑Revenue Mix
Several large life sciences/data center awards carry higher than normal pass‑through revenue, which can inflate gross revenue but moderates adjusted net revenue growth; management noted gross profit in backlog rose 15% YoY to reflect underlying sales strength despite pass‑through dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Backlog and Strong Book-to-Bill
Consolidated backlog grew 21% year‑over‑year to a record $26.3 billion; trailing twelve‑month book‑to‑bill rose to 1.4x and quarterly book‑to‑bill strengthened to 2.0x, indicating robust award activity and revenue visibility.
Read all positive updates
Company Guidance
Management raised FY‑2026 guidance, increasing adjusted net revenue growth to 6.5–10% YoY, adjusted EPS to $6.95–$7.30 (midpoint implying >16% YoY EPS growth), and free cash flow margin to 7–8.5%, while maintaining an adjusted EBITDA margin range of 14.4–14.7%. For Q2 they expect adjusted EBITDA margin of 13.8–14.0% and roughly 6.5% YoY net revenue growth. The guidance excludes the announced purchase of the remaining PA Consulting stake (expected to be EPS‑accretive within 12 months and to deliver $16–20M of cost synergies beginning in FY‑2026); net leverage is currently just below 0.8x LTM adjusted EBITDA and will rise slightly above the 1.0–1.5x target on close before returning to range within a year. Management cited strong Q1 metrics—$365M free cash flow, $303M adjusted EBITDA (13.4% margin), adjusted EPS of $1.53 (+15%), backlog up 21% to $26.3B and TTM book‑to‑bill of 1.4x—as the basis for the higher outlook and reiterated capital returns (quarterly dividend raised to $0.36, +12.5%, and a plan to return at least 60% of free cash flow).Jacobs Solutions Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| 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
Negative
127.19
Price Trends
134.59
Negative
136.46
Negative
140.88
Negative
Market Momentum
-2.09
Negative
43.53
Neutral
51.89
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 127.19 is below the 20-day moving average (MA) of 129.02, below the 50-day MA of 134.59, and below the 200-day MA of 140.88, indicating a bearish trend. The MACD of -2.09 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for J.
Jacobs Solutions Risk Analysis
Jacobs Solutions disclosed 62 risk factors in its most recent earnings report. Jacobs Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jacobs Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $83.12B | 62.25 | 12.60% | 0.09% | 18.72% | 23.97% | |
74 Outperform | $26.68B | 42.42 | 13.08% | ― | 12.99% | 274.10% | |
72 Outperform | $8.06B | 21.14 | 20.29% | 0.74% | 4.69% | -24.37% | |
71 Outperform | $18.26B | 52.70 | 9.13% | ― | 10.69% | ― | |
68 Neutral | $14.94B | 30.11 | 11.80% | 0.94% | -23.00% | -61.88% | |
68 Neutral | $10.77B | 42.33 | 19.75% | 1.06% | 0.21% | 53.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
J
Jacobs Solutions
127.19
10.99
9.46%
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TTEK
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Jacobs Solutions Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Jacobs Solutions Secures New Credit Facilities for Acquisition
Positive
Mar 17, 2026
On March 16–17, 2026, Jacobs Solutions put in place a new $1.5 billion multi‑currency revolving credit facility maturing in 2031 and a combined $1.2 billion term loan structure, replacing its existing revolver and expanding liquidity. ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Jacobs Solutions Prices $1.3 Billion Senior Notes Offering
Positive
Mar 4, 2026
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 ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Jacobs Issues Senior Notes to Fund PA Consulting Acquisition
Positive
Feb 27, 2026
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 d...
Executive/Board ChangesDividends
Jacobs Solutions Updates Board Committees and Raises Dividend
Positive
Feb 3, 2026
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 a...
Business Operations and StrategyM&A Transactions
Jacobs Solutions to Fully Acquire UK’s PA Consulting
Positive
Jan 5, 2026
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 th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.