Jacobs Solutions Inc: well ahead of our initial FY26 expectations & remain on track to reach or exceed all of our FY29 targets

Jacobs Solutions Inc. (NYSE: J) has reported strong financial performance in the first quarter of fiscal 2026, significantly exceeding initial expectations. The company reported gross revenue of $3.3 billion, a 12.3% year-over-year increase, while adjusted net revenue rose 8.2% to $2.3 billion. GAAP net earnings for the quarter were $125.0 million, compared to a net loss of $17.1 million in the same period of the prior year. Adjusted EPS increased by 15.0% year-over-year to $1.53.

The company’s robust performance was supported by strong demand in key sectors such as Life Sciences, Data Center, Semiconductor, Water, and Transportation within its Infrastructure & Advanced Facilities (I&AF) segment. PA Consulting also contributed to the growth, with revenue increasing 16% year-on-year.

Jacobs has raised its full-year guidance for fiscal 2026, with adjusted net revenue growth now expected to range between 6.5% and 10.0%. The company also increased its adjusted EPS guidance to a range of $6.95 to $7.30 and raised its free cash flow margin forecast to 7.0% to 8.5%. Additionally, the company announced a 12.5% increase in its quarterly dividend and repurchased $252 million of its shares during the quarter.

Looking ahead, Jacobs remains on track to achieve or exceed its long-term targets, including a 17%+ adjusted EBITDA margin and annual free cash flow of $1.2 billion to $1.3 billion by fiscal 2029. The company’s strong backlog growth of 21% year-over-year and a TTM book-to-bill ratio of 1.4x further support its confidence in future performance.