Jacobs Solutions Q4 2025 Earnings Revenue Rises 6.6% but Net Income Plummets 64.7%

Jacobs Solutions (J) reported fiscal 2025 Q4 earnings on Nov 20, 2025, with revenue growing 6.6% to $3.15 billion, surpassing estimates by 0.55%. Earnings, however, declined sharply, with EPS dropping 60.8% to $1.03 and net income falling 64.7% to $119.54 million. The company outlined FY26 guidance, projecting 6–10% revenue growth and 16% adjusted EPS expansion, signaling optimism despite near-term profit challenges.

Revenue

Jacobs Solutions’ Q4 revenue rose 6.6% year-over-year to $3.15 billion, driven by strong performance in Infrastructure & Advanced Facilities and PA Consulting. The Infrastructure & Advanced Facilities segment reported $1.92 billion in revenue, slightly below estimates, while PA Consulting contributed $318.46 million, a 10% year-over-year increase. Both segments demonstrated resilience amid macroeconomic volatility.

Earnings/Net Income

The company’s EPS plummeted 60.8% to $1.03, and net income fell 64.7% to $119.54 million. The sharp decline was attributed to a higher effective tax rate and one-time gains in the prior year. Despite revenue growth, the earnings performance underscores near-term profitability pressures.

Post-Earnings Price Action Review

The stock price of Jacobs Solutions dropped 14.17% in a single trading day, with a 21.45% decline month-to-date. A strategy of buying JPM when revenue misses and holding for 30 days underperformed the market, losing 10.85% compared to SPY’s 3.15% loss. Analysts suggest refining the approach by incorporating stricter filters or adjusting holding periods based on the severity of revenue shortfalls.

CEO Commentary

CEO Robert Pragada highlighted “strong results for Q4 and FY25,” noting double-digit adjusted EPS growth driven by revenue expansion and margin improvement. He emphasized a record backlog of $23.1 billion and strategic investments in AI and digital solutions, including partnerships with NVIDIA and Palantir. Pragada expressed confidence in FY26 momentum, citing growth drivers in water, data centers, and semiconductors.

Guidance

CFO Venkatesh Nathamuni provided FY26 guidance: adjusted net revenue growth of 6–10%, EBITDA margin of 14.4–14.7%, and adjusted EPS of $6.90–$7.30. Free cash flow margin is targeted at 7–8%. The company also plans to maintain disciplined capital returns, having returned $1.1 billion to shareholders in FY25.

Additional News

1. Analyst Downgrade: Baird lowered its rating for Jacobs from “Outperform” to “Neutral” and reduced the price target to $146 from $161.

2. Record Backlog: The company reported a $23.1 billion backlog, with a 1.1x book-to-bill ratio, driven by wins in water infrastructure and semiconductor projects.

3. Shareholder Returns: Jacobs returned $1.1 billion to shareholders in FY25 through buybacks and dividends, with plans to maintain disciplined capital allocation in FY26.

The stock’s mixed post-earnings reaction reflects confidence in long-term growth but concerns over short-term profitability. Investors will closely monitor the execution of strategic initiatives and margin expansion in FY26.