Jacobs Solutions 2025 Q4 Earnings Beats Estimates Despite 60.8% EPS Drop

Jacobs Solutions (J) reported fiscal 2025 Q4 earnings on November 20, 2025, delivering revenue growth that exceeded expectations while net income and EPS declined sharply. The company’s guidance for FY 2026 aligned with previous estimates, signaling cautious optimism for adjusted EPS expansion.

Revenue

Jacobs Solutions reported total revenue of $3.15 billion in Q4 2025, a 6.6% increase from $2.96 billion in Q4 2024. Infrastructure & Advanced Facilities (I&AF) led with $1.92 billion in revenue, while PA Consulting contributed an additional $318.46 million. The company’s trailing twelve-month book-to-bill ratio of 1.1x and record backlog of $23.1 billion underscored strong project demand, driven by growth in life sciences, data centers, water, and transportation sectors.

Earnings/Net Income

Earnings per share (EPS) plummeted 60.8% to $1.03 in Q4 2025, compared to $2.62 in Q4 2024, while net income fell to $119.54 million, down 64.7% from $338.76 million. Adjusted EPS, however, rose 27.7% to $1.75, reflecting non-GAAP metrics. The stark GAAP EPS decline was attributed to mark-to-market gains/losses from prior Amentum stock holdings. The EPS drop signals a significant challenge in maintaining profitability.

Price Action

The stock price of Jacobs Solutions tumbled 14.17% during the latest trading day, 15.69% over the preceding week, and 21.45% month-to-date. Post-earnings, shares traded lower amid concerns over margin compression and sector-specific headwinds. Analysts noted mixed sentiment, with Zacks assigning a #3 (Hold) rating due to uncertain estimate revisions. The stock’s underperformance contrasted with the S&P 500’s year-to-date gains, reflecting investor caution ahead of FY 2026 guidance.

CEO Commentary

Chair and CEO Bob Pragada highlighted FY 2025’s strong execution, including organic revenue growth, margin expansion, and record backlog. He emphasized strategic focus on high-growth sectors like water, data centers, and semiconductors, with PA Consulting’s accelerated revenue contributing to consolidated results. Pragada expressed confidence in FY 2026, citing secular tailwinds and synergies with PA Consulting.

Guidance

Jacobs projected FY 2026 adjusted net revenue growth of 6–10%, with adjusted EBITDA margins of 14.4–14.7% and free cash flow margins of 7–8%. Adjusted EPS guidance of $6.90–$7.30 implies 16% growth at the midpoint. Qualitative expectations include disciplined capital returns and continued margin expansion, though execution risks remain tied to macroeconomic conditions.

Additional News

Jacobs Solutions announced a record $1.1 billion in buybacks and dividends during FY 2025, reflecting robust capital return policies. The company’s backlog reached $23.1 billion, driven by project wins in water infrastructure and transportation. Additionally, CEO Bob Pragada highlighted PA Consulting’s revenue acceleration as a key growth driver, while insider transactions by executives, including VP Zaccaro and President Miller, underscored confidence in the stock.

The company’s strategic positioning in critical infrastructure and advanced technology sectors positions it to capitalize on long-term trends, though near-term volatility may persist amid sector-specific challenges.