Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $16.65B
• Dividend Yield: 0.91%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 58.9
• Beta (1Y): 0.94
• Revenue Growth: -23.00%
• EPS Growth: -61.88%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Software - Services
• EPS (TTM): 1.75
• Shares Outstanding: 118,749,160
• 10 Day Avg. Volume: 1,216,534
• 30 Day Avg. Volume: 1,164,321
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 6.79
• Enterprise Value/Ebitda: 21.84
• 1Y Price Target: $155.33
• Price Target Upside: 10.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.08
• Revenue Forecast (FY): $12.93B

• Rating: 70 Outperform
• Price Target: $154.00 ▲(9.95% Upside)

Jacobs Solutions' strong financial performance and positive earnings call are significant strengths, positioning the company well for future growth. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation, which are notable risks.

Positive Factors

Record Backlog

A record backlog indicates strong future revenue potential and sustained demand for Jacobs' services, supporting long-term growth.

AI and Digital Expansion

Strategic partnerships in AI enhance Jacobs' competitive edge and potential for margin expansion, aligning with digital transformation trends.

Infrastructure Project Wins

Winning major infrastructure projects strengthens Jacobs' market position and showcases its capability in large-scale project management.

Negative Factors

Environmental Sector Challenges

Regulatory volatility in the environmental sector could hinder revenue growth, impacting Jacobs' ability to capitalize on this market.

Operational Efficiency

Low EBIT margins suggest inefficiencies in operations, which may limit profitability and competitiveness in the long term.

One-time Financial Impacts

Anticipated one-time financial impacts could strain cash flow and affect fiscal stability, posing risks to financial health.

Jacobs Solutions Business Overview & Revenue Model

Company Description

Jacobs Solutions (J) is a global provider of professional services in engineering, architecture, and construction management. The company operates across multiple sectors including infrastructure, environmental, and energy, delivering innovative solutions that enhance the quality of life in communities. Its core offerings encompass project management, design and consulting services, and technical expertise aimed at advancing the development of sustainable and resilient infrastructure.

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

Jacobs Solutions exhibits strong financial performance with significant revenue growth and profitability. The company maintains a balanced leverage strategy and demonstrates effective cash management. However, operational efficiency could be improved, as indicated by a low EBIT margin.

Income Statement

Jacobs Solutions has demonstrated strong revenue growth with a 55.96% increase in the latest year, indicating robust demand for its services. The gross profit margin is stable around 24.8%, and the net profit margin is healthy at 6.31%. However, the EBIT margin is notably low, suggesting potential inefficiencies in operational management. Overall, the income statement reflects a strong growth trajectory with solid profitability.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.74, indicating a balanced approach to leveraging. Return on equity is strong at 20.85%, showcasing effective use of shareholder funds. However, the equity ratio is not explicitly calculated, which could provide further insights into asset management. The balance sheet suggests financial stability with a prudent leverage strategy.

Cash Flow

Jacobs Solutions has shown a significant free cash flow growth of 47.39%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting that cash generation is aligned with reported earnings. The free cash flow to net income ratio is high at 88.46%, indicating efficient conversion of profits into cash. Overall, the cash flow statement reflects strong cash management and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.03B	12.03B	11.50B	10.85B	9.78B	14.09B
Gross Profit	2.98B	2.98B	2.83B	2.71B	2.58B	3.04B
EBITDA	926.84M	926.84M	1.26B	996.31M	878.74M	1.02B
Net Income	284.44M	290.25M	806.09M	665.78M	644.04M	477.03M
Balance Sheet
Total Assets	11.25B	11.25B	11.76B	14.62B	14.66B	14.63B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.24B	1.89B	770.85M	1.14B	1.01B
Total Debt	2.71B	2.71B	2.75B	3.47B	4.17B	3.82B
Total Liabilities	6.59B	6.59B	6.37B	7.38B	7.92B	8.00B
Stockholders Equity	3.64B	3.64B	4.55B	6.55B	6.06B	5.94B
Cash Flow
Free Cash Flow	607.47M	607.47M	933.56M	837.28M	347.09M	633.46M
Operating Cash Flow	686.70M	686.70M	1.05B	974.76M	474.71M	726.28M
Investing Cash Flow	-79.70M	-75.29M	-127.19M	-145.66M	-538.42M	-1.38B
Financing Cash Flow	-520.82M	-525.22M	-751.64M	-1.09B	320.23M	798.98M

Jacobs Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 140.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Neutral. The current price of 140.06 is below the 20-day moving average (MA) of 141.75, below the 50-day MA of 150.20, and above the 200-day MA of 135.66, indicating a neutral trend. The MACD of -3.85 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for J.

Jacobs Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWR	78 Outperform	$68.69B	68.34	13.16%	0.09%	18.72%	23.97%
APG	74 Outperform	$16.40B	107.07	8.71%	―	10.69%	―
MTZ	74 Outperform	$17.32B	52.19	11.18%	―	12.99%	274.10%
TTEK	73 Outperform	$8.90B	36.81	13.72%	0.75%	4.69%	-24.37%
ACM	71 Outperform	$13.50B	24.31	27.29%	1.02%	0.21%	53.80%
J	70 Outperform	$16.65B	58.91	7.67%	0.91%	-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 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.