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Jacobs Q1 Earnings & Revenues Top, Both Up Y/Y, FY26 View Raised
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Key Takeaways
Jacobs' backlog rose 21% Y/Y as it benefits from data centers, life sciences and infrastructure demand.
The PA Consulting segment drove margin expansion, lifting the earnings power and digital exposure.
Jacobs raised its fiscal 2026 guidance as it boosts cash flow and signals confidence with a dividend hike.
Jacobs Solutions Inc. (J - Free Report) reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.
The quarterly results reflect strong contributions from both the reportable segments, Infrastructure & Advanced Facilities and PA Consulting. Stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstered the quarter’s uptrend. Moreover, the favorable impact of foreign currency translation was an additional tailwind.
With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026. Besides, a 12.5% hike (to 35 cents per share) in quarterly dividend payment is expected to encourage investors’ sentiments.
Shares of this construction and technical services company inched up 0.4% during yesterday’s after-market trading session.
Inside Jacobs’ Q1 Results
The company reported adjusted earnings per share (EPS) of $1.53, which topped the Zacks Consensus Estimate of $1.52 by 0.7%. In the year-ago quarter, it reported an adjusted EPS of $1.33.
Jacobs’ gross revenues of $3.29 billion also surpassed the consensus mark of $3.18 billion by 3.5% and grew 12.3% year over year. Adjusted net revenues of $2.25 billion were also up 8.2% year over year.
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Adjusted operating profit grew 8.2% to $299.6 million from a year ago. Adjusted operating margin remained flat year over year at 13.3%. Adjusted EBITDA was $302.6 million (up 7.3% year over year), with a margin of 13.4%, down 10 basis points (bps) from a year ago.
Fiscal first-quarter end backlog increased 20.6% year over year to $26.3 billion, underpinned by strong project wins. The book-to-bill ratio was 1.4x in the trailing 12-month period, highlighting robust demand and future revenue stability.
Jacobs’ Segment Details
Infrastructure & Advanced Facilities (IA&F): This segment’s revenues totaled $2.94 billion, which increased 12% year over year from $2.6 billion. Adjusted net revenues (excluding Pass-Through revenues) were $1.9 billion, up 6.9% year over year. Its operating profit was up 2.4% from the prior-year quarter to $214.7 million and the margin contracted 50 bps to 11.3%, due to increased selling, general and administrative expenses.
The backlog at the quarter’s end was $25.9 billion, up from $21.48 billion a year ago.
The Critical Infrastructure business also delivered growth during the quarter, with gross revenues rising 6.5% year over year to $1.16 billion. The Life Sciences and Advanced Manufacturing business also witnessed 31.3% year-over-year growth in its gross revenues to $952 million. Also, the Water & Environmental business witnessed growth in its gross revenues by 1.7% year over year to $825 million.
PA Consulting: The segment generated $354.4 million in revenues, which were up 15.5% from $306.7 million reported in the year-ago quarter.
Its operating profit was $84.9 million, up 27.3% from a year ago, with the margin expanding 220 bps to 27.2%. The quarter-end backlog amounted to $406 million, up from $331 million a year ago.
Jacobs’ Balance Sheet & Cash Flow
At the fiscal first-quarter end, Jacobs had cash and cash equivalents of $1.55 billion, up from $1.24 billion at the fiscal 2025 end (Sept. 26, 2025). Long-term debt increased to $2.49 billion as of Dec. 26, 2025, from $2.24 billion at the fiscal 2024-end.
Net cash provided by operating activities totaled $380.8 million in the first three months of fiscal 2026 compared with $107.5 million in the comparable year-ago period. In the same time frame, the free cash flow was $364.9 million, notably up from $97.1 million a year ago.
Jacobs Raises Fiscal 2026 Guidance
Adjusted net revenues are now expected to grow year over year between 6.5% and 10% (previously projected to grow between 6% and 10%). Adjusted EPS is now expected to be between $6.95 and $7.30, up from the previous expectation of $6.90-$7.30.
Adjusted EBITDA margin is still expected to be between 14.4% and 14.7%.
The company expects free cash flow margin to range from 7% to 8.5% (previously projected to grow between 7% and 8%). Capital expenditures are expected to be about 1% of its consolidated revenues.
Weyerhaeuser Company (WY - Free Report) reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both the top and bottom lines decreased.
Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics within the Wood Products segment. Despite these challenges, Weyerhaeuser continued to optimize its portfolio through disciplined, capital-efficient transactions. It successfully closed the divestiture of 28,000 acres in Oregon for $190 million and approximately 86,000 acres across Georgia and Alabama for $216 million.
PulteGroup (PHM - Free Report) reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate, though both metrics declined year over year amid continued affordability pressures and margin compression.
Lower consumer confidence and higher incentive activity weighed on profitability, partially offset by stable order trends, higher community counts and disciplined capital deployment. Home sale revenues declined 5% year over year to $4.48 billion, due to a 3% decrease in closings to 7,821 homes and a 1% decline in average selling price or ASP to $573,000. Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand. PulteGroup remains focused on disciplined asset turnover, strong cash flow generation and sustained land investment to support 3–5% annual community count growth over time.
United Rentals, Inc. (URI - Free Report) reported lower-than-expected fourth-quarter 2025 results, with adjusted earnings per share (EPS) and total revenues both missing the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.
United Rentals’ fourth-quarter revenues improved year over year due to increased fleet productivity and strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism and healthy backlogs contributed to the overall strength. United Rentals expects to see continued growth in large projects and strong performance in the specialty segment. URI’s board of directors hiked the quarterly dividend payment by 10% to $1.97 per share ($7.88 per share annually).
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Jacobs Q1 Earnings & Revenues Top, Both Up Y/Y, FY26 View Raised
Key Takeaways
Jacobs Solutions Inc. (J - Free Report) reported stellar first-quarter fiscal 2026 (ended Dec. 26, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and growing year over year.
The quarterly results reflect strong contributions from both the reportable segments, Infrastructure & Advanced Facilities and PA Consulting. Stronger performance in the life sciences, data center, semiconductor, water and transportation sectors, alongside increased demand for digital consulting services, bolstered the quarter’s uptrend. Moreover, the favorable impact of foreign currency translation was an additional tailwind.
With the announcement of acquiring the remaining stake in PA Consulting and favorable market fundamentals, Jacobs is optimistic about its performance in the remaining fiscal 2026. Besides, a 12.5% hike (to 35 cents per share) in quarterly dividend payment is expected to encourage investors’ sentiments.
Shares of this construction and technical services company inched up 0.4% during yesterday’s after-market trading session.
Inside Jacobs’ Q1 Results
The company reported adjusted earnings per share (EPS) of $1.53, which topped the Zacks Consensus Estimate of $1.52 by 0.7%. In the year-ago quarter, it reported an adjusted EPS of $1.33.
Jacobs’ gross revenues of $3.29 billion also surpassed the consensus mark of $3.18 billion by 3.5% and grew 12.3% year over year. Adjusted net revenues of $2.25 billion were also up 8.2% year over year.
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote
Adjusted operating profit grew 8.2% to $299.6 million from a year ago. Adjusted operating margin remained flat year over year at 13.3%. Adjusted EBITDA was $302.6 million (up 7.3% year over year), with a margin of 13.4%, down 10 basis points (bps) from a year ago.
Fiscal first-quarter end backlog increased 20.6% year over year to $26.3 billion, underpinned by strong project wins. The book-to-bill ratio was 1.4x in the trailing 12-month period, highlighting robust demand and future revenue stability.
Jacobs’ Segment Details
Infrastructure & Advanced Facilities (IA&F): This segment’s revenues totaled $2.94 billion, which increased 12% year over year from $2.6 billion. Adjusted net revenues (excluding Pass-Through revenues) were $1.9 billion, up 6.9% year over year. Its operating profit was up 2.4% from the prior-year quarter to $214.7 million and the margin contracted 50 bps to 11.3%, due to increased selling, general and administrative expenses.
The backlog at the quarter’s end was $25.9 billion, up from $21.48 billion a year ago.
The Critical Infrastructure business also delivered growth during the quarter, with gross revenues rising 6.5% year over year to $1.16 billion. The Life Sciences and Advanced Manufacturing business also witnessed 31.3% year-over-year growth in its gross revenues to $952 million. Also, the Water & Environmental business witnessed growth in its gross revenues by 1.7% year over year to $825 million.
PA Consulting: The segment generated $354.4 million in revenues, which were up 15.5% from $306.7 million reported in the year-ago quarter.
Its operating profit was $84.9 million, up 27.3% from a year ago, with the margin expanding 220 bps to 27.2%. The quarter-end backlog amounted to $406 million, up from $331 million a year ago.
Jacobs’ Balance Sheet & Cash Flow
At the fiscal first-quarter end, Jacobs had cash and cash equivalents of $1.55 billion, up from $1.24 billion at the fiscal 2025 end (Sept. 26, 2025). Long-term debt increased to $2.49 billion as of Dec. 26, 2025, from $2.24 billion at the fiscal 2024-end.
Net cash provided by operating activities totaled $380.8 million in the first three months of fiscal 2026 compared with $107.5 million in the comparable year-ago period. In the same time frame, the free cash flow was $364.9 million, notably up from $97.1 million a year ago.
Jacobs Raises Fiscal 2026 Guidance
Adjusted net revenues are now expected to grow year over year between 6.5% and 10% (previously projected to grow between 6% and 10%). Adjusted EPS is now expected to be between $6.95 and $7.30, up from the previous expectation of $6.90-$7.30.
Adjusted EBITDA margin is still expected to be between 14.4% and 14.7%.
The company expects free cash flow margin to range from 7% to 8.5% (previously projected to grow between 7% and 8%). Capital expenditures are expected to be about 1% of its consolidated revenues.
Jacobs’ Zacks Rank & Recent Construction Releases
Jacobs currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Weyerhaeuser Company (WY - Free Report) reported mixed fourth-quarter 2025 results, wherein its earnings topped the Zacks Consensus Estimate, but net sales missed the same. Meanwhile, on a year-over-year basis, both the top and bottom lines decreased.
Weyerhaeuser’s fourth-quarter results were impacted by persistent market headwinds across key markets, characterized by softened pricing and volatile demand dynamics within the Wood Products segment. Despite these challenges, Weyerhaeuser continued to optimize its portfolio through disciplined, capital-efficient transactions. It successfully closed the divestiture of 28,000 acres in Oregon for $190 million and approximately 86,000 acres across Georgia and Alabama for $216 million.
PulteGroup (PHM - Free Report) reported better-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate, though both metrics declined year over year amid continued affordability pressures and margin compression.
Lower consumer confidence and higher incentive activity weighed on profitability, partially offset by stable order trends, higher community counts and disciplined capital deployment. Home sale revenues declined 5% year over year to $4.48 billion, due to a 3% decrease in closings to 7,821 homes and a 1% decline in average selling price or ASP to $573,000. Management noted that while lower interest rates have improved relative affordability, subdued consumer confidence continues to weigh on demand. PulteGroup remains focused on disciplined asset turnover, strong cash flow generation and sustained land investment to support 3–5% annual community count growth over time.
United Rentals, Inc. (URI - Free Report) reported lower-than-expected fourth-quarter 2025 results, with adjusted earnings per share (EPS) and total revenues both missing the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.
United Rentals’ fourth-quarter revenues improved year over year due to increased fleet productivity and strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism and healthy backlogs contributed to the overall strength. United Rentals expects to see continued growth in large projects and strong performance in the specialty segment. URI’s board of directors hiked the quarterly dividend payment by 10% to $1.97 per share ($7.88 per share annually).