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Jacobs Solutions Inc

Jacobs Solutions Inc

J
$131.75USD↓-0.42%-0.56 today

MARKET CAP

15.6B

P/E (TTM)

19.8x

FWD P/E

16.4x

DAY RANGE

$131 – $135

52W RANGE

$106
$168

AI Summary

Stalk
StalkMedium

J remains in a Stage 2 advancing phase with clear higher highs and higher lows above rising 9EMA, 21EMA, and the 50DMA, reflecting strong medium-term strength. However, price is currently extended above EMAs into extreme overbought territory and nearing the 200DMA resistance, increasing distribution risk. Medium-term bias stays bullish, but execution should be deferred until a disciplined pullback into the rising EMA or 50DMA zone is absorbed.

  • ↑Backlog reached $27 bn (+22% YoY), indicating robust demand.
  • ↑Adjusted EPS jumped 22% to $1.75 on 9% organic revenue growth.
  • ↓Profitability weak; tight margins persist despite sales growth.
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The case for & against

Bull & Bear analysis

Bullish

Jacobs Solutions Inc. (NYSE: J) is a global leader in professional services, providing a broad range of engineering, design, and technical services across multiple sectors including infrastructure, environmental, life sciences, and advanced manufacturing. The company is strategically positioned within the critical infrastructure theme, capitalizing on substantial growth opportunities prompted by increasing investments in technology and sustainability. Jacobs has established itself as a trusted partner in many vital infrastructure projects, reflecting its ongoing commitment to enhancing efficiency in sectors that are crucial for societal well-being.

Bull says

  • ↑Backlog reached $27 bn (+22% YoY), indicating robust demand.
  • ↑Adjusted EPS jumped 22% to $1.75 on 9% organic revenue growth.
  • ↑AI infrastructure pipeline up 400% YoY drives data-center expansion.
  • ↑Q2 adjusted EBITDA rose 14% to $327 mn with 14.1% margin.
  • ↑$627 mn share buybacks and dividend hike signal strong returns.
  • ↑Infrastructure spending under IIJA supports future project wins.

Bear says

  • ↓Profitability weak; tight margins persist despite sales growth.
  • ↓Leverage at 2.1x post-PA acquisition heightens integration risk.
  • ↓Negative earnings revisions suggest analyst forecasts may be cut.
  • ↓High short interest signals market skepticism on execution.
  • ↓Volatile demand in environmental and water segments threatens revenue.
  • ↓Weak value perception and low profitability factors could pressure shares.

Investment themes with J

Infrastructure Development↑ +0.48%

DE · HWM · TT

Earnings Call · Q2 2026 · Mgmt. Guidance

Updated 05-08-2026neutral

Transcript signals

Bull points

  • Growth revenue increased 27% year-over-year, and adjusted net revenue, which excludes pass-through revenue, grew by 9%. These both represent the highest consolidated growth rates for the company since the separation of our government services business in 2024.
  • Q2 adjusted EBITDA was $327 million, growing more than 14%, with our margin coming in at 14.1%, or up 70 basis points year-over-year, driven by good operating discipline. This resulted in adjusted EPS rising 22% year-over-year.
  • Consolidated backdrop was also up 22% year-over-year to a record $27 billion with a trailing 12-month book-to-bill at 1.4 times.

Bear points

  • We had an adjusted free cash outflow of $272 million, partly as a function of a favorable Q1 cash timing item that reversed in Q2.
  • This brings our first half adjusted free cash flow to $93 million, a solid increase over fiscal year 25, but we had to account for a portion of the PA transaction proceeds in operating cash under U.S. GAAP reporting guidelines.
  • Our balance sheet is in good shape following the acquisition of PA Consulting, with our net leverage at 2.1 times ending the quarter, and we plan to return to below two times by year-end.
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