A month has gone by since the last earnings report for Jacobs Solutions (J Quick QuoteJ - Free Report) . Shares have lost about 4.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Jacobs Solutions due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Jacobs Solutions Inc. before we dive into how investors and analysts have reacted as of late.

Jacobs Q2 Earnings & Revenues Top Estimates, Up Y/Y, FY26 View Raised

Jacobs delivered strong second-quarter fiscal 2026 (ended March 27, 2026) results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and improving year over year.

Jacobs delivered strong top-line growth as healthy demand persisted across priority markets, led by data center and semiconductor activity, with additional support from water, power and transportation. Growth within Infrastructure & Advanced Facilities remained broad-based, highlighted by notable wins including a major wastewater treatment program in San Francisco, a water regulation contract in the United Kingdom, and multiple hyperscaler-related data center awards.

Inside Jacobs’ Q2 Results

The company reported adjusted earnings per share (EPS) of $1.75, up 22.4% from the year-ago level, and beat the consensus mark of $1.64 by 6.7%.

Gross revenues rose 27% year over year to $3.7 billion and surpassed the consensus estimate of $3.25 billion by 13.8%. Adjusted net revenues of $2.3 billion were also up 8.8% year over year.

Backlog increased 21.7% year over year to a record $27 billion, underscoring healthy award activity and visibility.

Jacobs Expands Margins on Solid Execution

Profitability improved year over year as Jacobs benefited from operating discipline and a favorable mix. Adjusted EBITDA rose 14.2% from a year ago to $327.2 million, while adjusted EBITDA margin expanded 70 basis points to 14.1% on adjusted net revenues.

At the segment level, Infrastructure & Advanced Facilities operating profit improved, with margin expanding modestly as project execution held up. PA Consulting also remained a margin-accretive contributor, with operating profit rising and margin staying above 22%, helping lift consolidated profitability despite integration-related items tied to the PA transaction.

Jacobs’ Q2 Segment Details

Infrastructure & Advanced Facilities (I&AF): Segment revenues totaled $3.34 billion, up 28.2% year over year from $2.60 billion. Excluding $1.37 billion of pass-through revenues, adjusted net revenues were $1.97 billion.

I&AF segment operating profit increased 11.4% year over year to $225.2 million from $203.3 million. Operating profit as a percentage of adjusted net revenues improved to 11.4% from 11.1% a year ago, reflecting modest margin expansion. Backlog in the segment rose 21.9% year over year to $26.54 billion as of March 27, 2026.

PA Consulting: Segment revenues were $358.6 million, up 16.5% year over year from $307.7 million, driven primarily by growth in PA’s public services businesses, including public services and defense and security.

Operating profit rose 18.6% year over year to $79.9 million from $67.3 million, and operating profit as a percentage of revenues improved to 22.3% from 21.9% in the prior-year quarter. PA Consulting backlog increased to $427 million from $392 million a year ago, supported by organic growth.

Jacobs’ Cash Flow and Balance Sheet Reflect PA Timing

Cash generation was mixed in the quarter, influenced by acquisition-related timing items. Management noted an adjusted free cash outflow of $272 million in the second quarter, partly tied to a favorable first-quarter timing item that reversed, bringing first-half adjusted free cash flow to $93 million.

The balance sheet expanded following the PA transaction and related financing. Jacobs ended the quarter with cash and cash equivalents of $1.37 billion, up from $1.24 billion at the fiscal 2025 end (Sept. 26, 2025). While long-term debt rose to $4.08 billion from $2.24 billion at the fiscal 2025-end. Management also highlighted a net leverage ratio of 2.1x and reiterated its intent to move back below 2.0x by fiscal year-end and toward its longer-term leverage target thereafter.

Net cash used for operating activities was $103.4 million in the first six months of fiscal 2026, compared with net cash provided by operating activities of $11 million in the year-ago period.

J Raises FY26 Outlook Again

Encouraged by first-half momentum, Jacobs raised its fiscal 2026 targets again. The company now expects adjusted net revenues to grow 8.0-10.5% year over year (previously projected to grow between 6.5% and 10%). Adjusted EBITDA margin projected at 14.6-14.9% (versus prior forecast of 14.4% to 14.7%). Adjusted earnings are now expected in the $7.10-$7.35 range, up from the previous expectation of 6.95 to $7.3, while adjusted free cash flow margin is still projected at 7.0-8.5%.

Capital returns remained active, with the company repurchasing $220 million of shares during the quarter and declaring a quarterly dividend of 36 cents per share. Management also discussed leverage and cash generation dynamics following the PA transaction, including near-term cash flow noise tied to acquisition-related payments and a plan to bring leverage back down as earnings and cash flow ramp through fiscal 2027.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -5.23% due to these changes.

VGM Scores

At this time, Jacobs Solutions has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Jacobs Solutions has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Jacobs Solutions is part of the Zacks Building Products - Miscellaneous industry. Over the past month, United Rentals (URI Quick QuoteURI - Free Report) , a stock from the same industry, has gained 9.6%. The company reported its results for the quarter ended March 2026 more than a month ago.

United Rentals reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $9.71 for the same period compares with $8.86 a year ago.

United Rentals is expected to post earnings of $11.60 per share for the current quarter, representing a year-over-year change of +10.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

United Rentals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.