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what it is
Jacobs helps governments and companies design, manage, and improve large projects, from infrastructure to complex facilities to strategy work.
how it gets paid
Last year Jacobs Solutions made $12.0B in revenue. Transportation and water infrastructure was the main engine at $3.8B, or 32% of sales.
why it's growing
Revenue grew 4.6% last year. Revenue rose 12% vs. prior year. Gross margin was 23.2%.
what just happened
Jacobs posted $3.3B in quarterly revenue and adjusted EPS of $1.53, edging past consensus.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
21.5x trailing p/e — priced about right
1.2% dividend yield — cash in your pocket every quarter
20.5% return on capital — every dollar works hard here
xvary composite: 81/100 — above average
What they do
Jacobs helps governments and companies design, manage, and improve large projects, from infrastructure to complex facilities to strategy work.
Big projects do not go to the cheapest bidder. They go to the firm you trust not to blow up your schedule or budget. Jacobs has 43,000 employees and earns a 20.5% return on capital (return on capital → profit from money invested → this business turns expertise into cash better than most contractors).
How they make money
$12.0B
annual revenue · their business grew +4.6% last year
Transportation and water infrastructure
$3.8B
+4.6%
Life sciences and semiconductor facilities
$2.7B
+4.6%
Data centers and advanced manufacturing
$2.0B
+4.6%
PA Consulting
$1.5B
+16.0%
Operations, maintenance, and other services
$2.0B
+4.6%
The products that matter
core infrastructure delivery
Infrastructure & Advanced Facilities
$7.2B · 60% of revenue
it's the largest segment by far, contributing $7.2B of the $12.0B total and growing 5.2%. If this slows, the whole company feels it.
core
strategy and consulting
PA Consulting
$3.6B · +16% growth
this $3.6B unit grew 16%, and operating profit rose 27%. That's faster growth and better operating leverage than the rest of the company.
growth engine
data center design tools
Digital Twin Solution for AI Data Centers
launched 2026
it's aimed at AI data centers, where annual capital spending already exceeds $50B. Real theme, real demand, but still too early to call it material to a $12.0B company.
early catalyst
Key numbers
$23.1B
backlog
Backlog → signed future work → so what: Jacobs already has almost two years of revenue lined up.
20.5%
return on capital
Return on capital → profit earned on invested money → so what: this business converts expertise into returns better than most project firms.
12.2%
operating margin
Operating margin → money left after running the business → so what: Jacobs earns more like a services company than a commodity builder.
21.5x
trailing p/e
P/E → price versus last year's profit → so what: you are paying up for steadier growth and cleaner execution.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 85 / 100
- long-term debt $2.5B (14% of capital)
- net profit margin 7.1% — keeps 7 cents of every dollar in revenue
- return on equity 37% — $0.37 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in J 3 years ago → it's now worth $13,650.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Jacobs posted $3.3B in quarterly revenue and adjusted EPS of $1.53, edging past consensus.
Revenue rose 12% vs. prior year. Gross margin was 23.2%, and the company raised FY2026 guidance midpoints after the quarter.
$3.3B
revenue
$1.53
eps
23.2%
gross margin
the number that mattered
The 12% revenue growth matters most because it is more than double the 4.6% full-year pace, which says demand accelerated.
source: company earnings report, 2026
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What could go wrong
the #1 risk is backlog not converting into revenue before infrastructure spending cools.
high
backlog conversion slips
Backlog grew 21% to a record high. Great. But backlog is a promise, not cash. If project timing slips, the revenue story slips with it.
The latest bullish framing depends on future work becoming current revenue on schedule.
med
infrastructure budget pressure
Infrastructure & Advanced Facilities is 60% of revenue, or $7.2B. If public or private project budgets tighten, the largest segment gets hit first.
A slowdown here matters more than strength in smaller units because this is the core business.
med
active shareholder litigation
The federal case cited in Colorado is real. The disclosure is thin on financial exposure, which means you should treat it as an uncertainty, not a neatly modelled line item.
Legal noise rarely builds value. At minimum, it can distract management and add cost.
med
thin margin for a project business
Net margin is 7.1%. That's respectable for engineering services, but it does not leave a giant cushion for overruns, delays, or messy execution.
You do not need a disaster for earnings to feel pain when margins start this close to single digits.
Infrastructure & Advanced Facilities is 60% of revenue, and the company only keeps 7.1% as net profit. That combination makes execution more important than the headline multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q2 2026 earnings report
Expected May 5, 2026. Consensus EPS is $1.69, but the more important read is whether backlog starts showing up in reported revenue.
mix
PA Consulting staying hotter than the core
PA Consulting grew 16% and lifted operating profit 27%. If that persists, company mix gets better even without explosive top-line growth.
trend
INAF demand holding above cruise speed
Infrastructure & Advanced Facilities is 60% of revenue and grew 5.2%. If that slips, the rest of the portfolio has to work harder.
risk
litigation docket changes
The Colorado shareholder case is still out there. Any dismissal, settlement, or ugly filing changes the tone even if the dollars stay unclear.
Analyst rankings
earnings predictability
90 / 100
in human-speak, management's numbers usually land close to where they say they will.
balance sheet
A
balance sheet grade is solid. this is built to absorb a normal slowdown without turning into a balance-sheet story.
risk rank
2
lower is better here. a 2 means the stock is safer than most of the market.
price stability
85 / 100
this tends to trade more like a steady contractor than a narrative stock.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 323 buyers vs. 302 sellers in 4q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$109
$194
$132
current price
$152
target midpoint · +15% from current · 3-5yr high: $230 (+75% · 15% ann'l return)
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