Jacobs Solutions 2025 Q4 Earnings Sharp Net Income Drop Amid Revenue Growth

Jacobs Solutions reported fiscal 2025 Q4 earnings on Nov 20, 2025, delivering a 6.6% year-over-year revenue increase to $3.15 billion but experiencing a significant 64.7% decline in net income to $119.54 million. The company’s guidance for fiscal 2026 includes a projected 16% midpoint growth in adjusted EPS, signaling optimism despite near-term earnings challenges.

Revenue

Jacobs Solutions achieved $3.15 billion in revenue for Q4 2025, driven by robust performance across its core segments. Infrastructure & Advanced Facilities (I&AF) contributed $1.92 billion in adjusted net revenue, maintaining steady growth in sectors like data centers and transportation. PA Consulting added $318.46 million, marking a 10% year-over-year increase, reflecting stronger demand for its consulting services. The company’s total backlog reached a record $23.1 billion, up 5.6% year-over-year, underscoring confidence in future project pipelines.

Earnings/Net Income

The company’s earnings per share (EPS) fell sharply to $1.03 in Q4 2025, a 60.8% decline from $2.62 in the prior-year period. Net income also plummeted to $119.54 million, down 64.7% from $338.76 million in 2024 Q4. This performance reflects the impact of mark-to-market adjustments and a challenging operating environment, despite organic revenue growth. The stark EPS drop highlights the need for cost management and strategic focus on high-margin projects to restore profitability.

Post-Earnings Price Action Review

The stock price of Jacobs Solutions has experienced a sharp decline, tumbling 14.17% in a single trading day, 15.69% over the past week, and 21.45% month-to-date. A post-earnings strategy of buying JPM when revenue misses and holding for 30 days underperformed the market, resulting in a 10.85% loss compared to a 3.15% loss for the SPY ETF. This suggests that current market conditions and investor sentiment may require refined strategies, such as shorter holding periods or additional filters, to capitalize on potential rebounds.

CEO Commentary

CEO Robert Pragada emphasized Jacobs’ strong FY 2025 performance, highlighting double-digit adjusted EPS growth, 6% net revenue growth, and a record backlog. He underscored growth drivers in water and environmental sectors, data centers, and semiconductor projects, noting PA Consulting’s double-digit revenue growth. Pragada expressed confidence in FY 2026 momentum, citing robust bookings, disciplined capital returns, and a resilient business model, while acknowledging challenges like regulatory volatility.

Guidance

Jacobs provided FY 2026 guidance with a midpoint of 16% growth in adjusted EPS, aligning with its strategic focus on AI, digital capabilities, and infrastructure modernization. The company aims to leverage its $23.1 billion backlog and sector-specific strengths to drive profitability and market share expansion.

Additional News

Jacobs Solutions announced a record $1.1 billion in capital returns through buybacks and dividends in fiscal 2025, reflecting its commitment to shareholder value. Executive insider purchases, including transactions by VP Zaccaro and President Miller, totaled over $1.25 million in shares, signaling confidence in the company’s long-term prospects. Additionally, the firm secured key project wins with United Utilities and the MTA, reinforcing its position in critical infrastructure and public sector markets.