Jacobs Solutions Inc. (J) Earnings
Jacobs Solutions Inc. is expected to report next earnings on November 19, 2026 (in NaN days), with a consensus EPS estimate of $2.17. J has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +3.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 4, 2026 | $1.83 | $1.84 | +0.5% | $2.4B | +0.5% |
| May 5, 2026 | $1.64 | $1.75 | +6.7% | $2.3B | +2.2% |
| Feb 3, 2026 | $1.52 | $1.53 | +0.7% | $3.3B | +2.4% |
| Nov 20, 2025 | $1.68 | $1.75 | +4.2% | $3.2B | +0.3% |
| Feb 4, 2025 | $1.29 | $1.33 | +3.1% | $2.9B | -2.2% |
| Nov 19, 2024 | $1.54 | $1.37 | -11.0% | $1.2B | -74.2% |
| Nov 21, 2023 | $2.02 | $1.90 | -5.9% | $4.3B | +1.8% |
| Feb 7, 2023 | $1.61 | $1.67 | +3.7% | $3.8B | +4.9% |
| Nov 21, 2022 | $1.77 | $1.80 | +1.7% | $3.9B | +0.7% |
| May 3, 2022 | $1.70 | $1.72 | +1.2% | $3.8B | +2.1% |
| Feb 8, 2022 | $1.60 | $1.56 | -2.5% | $3.4B | -6.6% |
| Nov 23, 2021 | $1.49 | $1.58 | +6.0% | $3.6B | +2.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · August 4, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Financial Performance: * Adjusted EPS grew 14% year over year to $1.84, driven by 8%+ organic adjusted net revenue growth and 100+ basis points of year-over-year margin expansion. * Consolidated adjusted EBITDA was $367 million, up 17% year over year, with an adjusted EBITDA margin of 15.2%, up 109 basis points year over year. * Consolidated backlog grew 27% year over year to a record $29 billion, with a trailing 12-month book-to-bill of 1.4x on gross revenue and 1.2x on net revenue. * Generated $541 million in adjusted free cash flow in Q3, bringing year-to-date adjusted free cash flow to $633 million. Net leverage declined to 1.8x, hitting the target of below 2.0x one quarter early. * Repurchased $614 million in shares through Q3 FY26, bringing total share repurchases since the start of FY25 to $1.4 billion, and is on track to return more than 100% of free cash flow to shareholders for the second consecutive year. - End Market Performance: * Life Sciences and Advanced Manufacturing: Net revenue grew 24% year over year, the highest growth rate since end market reporting began in late 2024, driven by strong demand from data center and semiconductor sectors. As of Q3, direct AI build-out represented 11% of adjusted net revenue, up 100 basis points from last quarter. * Critical Infrastructure: Net revenue increased 9% year over year, and is expected to grow in the mid-to-high single-digit range over the medium term. * Water and Environmental: Net revenue grew just over 1% year over year, with temporary headwinds in the environmental segment; strong Q3 awards are expected to drive sequential growth improvement in Q4. - Notable Award Highlights: * U.S. Navy Environmental Restoration Program (Mid-Atlantic/Puerto Rico) covering PFAS and munitions contaminated site restoration. * Central Utah Water District's $1.5 billion NEBO Regional Water Project Strawberry Highline Improvement, including modernization of 40 miles of aging canal infrastructure. * Sole-source EPCM contract for HUD-8's 1 gigawatt multi-phase AI data center campus (Beacon Point) in Texas, a follow-on project to the completed Riverbend campus in Louisiana. * UK Royal Air Force data-driven readiness optimization program, reinforcing Jacobs' position as a trusted defense sector partner.
Guidance
- This marks the third consecutive upward revision to Jacobs' FY26 guidance. FY26 adjusted net revenue growth is raised to 9.5% to 10% year over year. - The FY26 adjusted EBITDA margin range is narrowed to 14.7% to 14.8%, up from prior guidance. - FY26 adjusted EPS guidance is raised to $7.20 to $7.30, implying nearly 19% year-over-year adjusted EPS growth at the midpoint. - FY26 adjusted free cash flow margin guidance is raised to 8%. - For Q4 FY26, management expects ~14% year-over-year adjusted net revenue growth, an adjusted EBITDA margin of approximately 16%, a tax rate of roughly 27.5%, and quarterly free cash flow of approximately $150 million. No adjustments to free cash flow will be made in Q4, and full guidance for reported free cash flow margin will be provided for FY27. - Management reaffirms the target of deleveraging to a net leverage ratio of approximately 1.5x by the end of FY27.
Segment performance
1. Infrastructure and Advanced Facilities (INAF): Net revenue increased 10% year over year to a quarterly record of nearly $2.1 billion. Operating profit grew 14% year over year. INAF contributes the majority of Jacobs' total net revenue, and accounted for ~88% of total segment net revenue in the quarter. 2. PA Consulting: Revenue was flattish year over year, while operating profit increased 2%. Operating margin remained strong at approximately 22%. PA Consulting accounted for ~12% of total segment net revenue in the quarter. Both segments saw only minor foreign exchange impact on operating profit growth during Q3.
Risks & headwinds
- PA Consulting experienced temporary project start date delays due to the recent change in UK governmental leadership, though management noted activity has already returned to normal and solid Q4 quarter-on-quarter growth is expected. - Environmental segment continued to face year-over-year growth headwinds in Q3, though strong awards position the segment for sequential improvement in Q4. - The Middle East saw a temporary slowdown in some non-utility subsectors, though overall regional growth remained stable driven by utility work, with pipeline activity expected to drive upside in FY27. - Some AI data center projects are speculative; management stated Jacobs is being selective and prioritizing work with established, long-term clients.
Analyst Q&A
Q: Can FY27 net revenue grow at least as fast as FY26, and can the high-growth life sciences and advanced manufacturing segment maintain double-digit growth long-term? /
A: Management declined to provide specific FY27 growth guidance ahead of the next quarterly call, but noted the record backlog positions the company for at least long-term average mid-to-high single-digit growth. Management confirmed life sciences and advanced manufacturing, driven by AI and semiconductor demand, is a deep, broad growth engine, with increasing market share and multi-year client pipelines that can sustain double-digit growth for the foreseeable future.
Q: SG&A as a percentage of sales hit a multi-quarter low in Q3. Is this a one-time effect or a result of sustained operational discipline? /
A: The lower SG&A ratio is not one-time: it is the result of management's long-standing commitment to grow operating expenses at a slower pace than revenue. As revenue has accelerated over recent quarters, operating leverage has flowed through to margins, and management expects more of this improvement to show up in Q4.
Q: What is driving current INAF margin expansion, and will future margin expansion be balanced between INAF and PA? /
A: Current margin expansion is primarily driven by operating leverage from faster revenue growth and expanded use of low-cost global delivery, which has been heavily implemented in life sciences and advanced manufacturing. Mix shifts will have a larger impact starting in FY27. Management confirmed future margin expansion will be balanced between the two segments: PA is still integrating cost synergies from the acquisition, and it already holds industry-leading high margins that support continued expansion alongside INAF.
Q: What is the current trajectory of the AI data center pipeline, and is U.S. semiconductor construction activity still accelerating? /
A: The AI data center pipeline has grown 3x over the past period, with backlog doubling, and visibility now extends 2-3 years out, up from 6-9 months previously. Direct AI-related revenue now accounts for 11% of adjusted net revenue, up from 10% last quarter, with conversion of the pipeline to revenue accelerating. Management confirmed U.S. semiconductor construction activity is still accelerating, with growing demand from the largest domestic high bandwidth memory producers and resurging pipeline growth for long-time client Intel heading into FY27.