Infrastructure investment is accelerating across transportation, water, energy, defense and digital infrastructure as governments and private-sector clients commit capital to modernize aging assets and support emerging technologies. AECOM (ACM Quick QuoteACM - Free Report) and Jacobs Solutions Inc. (J Quick QuoteJ - Free Report) are two major professional-services companies positioned to benefit from these trends, offering engineering, consulting, design and program-management capabilities across large and complex infrastructure markets. AECOM serves clients across water, environment, energy, transportation and buildings, while Jacobs operates across advanced manufacturing, energy, environmental, life sciences, transportation and water. 

Both companies are expanding into higher-growth opportunities while emphasizing higher-value, less capital-intensive services. AECOM is benefiting from strong state and local infrastructure spending, growing water and defense pipelines, international opportunities and rising private-sector demand from data centers. Jacobs, meanwhile, is seeing particularly strong momentum in AI-related infrastructure, with data centers and semiconductors driving growth in its Life Sciences & Advanced Manufacturing business. Direct AI build-out represented 11% of Jacobs’ adjusted net revenues in the fiscal third quarter of 2026.

Let’s closely compare the fundamentals of the two stocks to determine which one has more upside.

The Case for AECOM Stock

AECOM continues to benefit from robust infrastructure spending despite a challenging third quarter of fiscal 2026. Total backlog increased 13% year over year to a record $27.8 billion, supported by record quarterly wins of $4.2 billion and a 1.6 book-to-burn ratio. Design wins alone reached $4 billion, while the design pipeline climbed to another record, strengthening visibility into future growth. 

The company has broad opportunities across its major markets. U.S. state and local governments continue to prioritize highways, bridges, transit, rail and water infrastructure, while AECOM’s U.S. water pipeline expanded 30%. Defense is another growing opportunity, with its pipeline tied to its largest federal client increasing approximately 30% during the quarter. Private-sector investment is also accelerating, particularly in data centers, which management described as one of AECOM’s fastest-growing businesses. 

International markets add another growth avenue. The UK is benefiting from water, environment and energy activity, including the Great Grid Upgrade and AMP8 programs. Australia posted double-digit growth, with backlog rising more than 40% year over year, while infrastructure wins continued in the Middle East despite geopolitical uncertainty.

AECOM is also targeting meaningful long-term profitability improvement. Excluding the construction management charge, fiscal 2026 adjusted EBITDA margin is expected to reach 17.4%. Management reaffirmed its target for a 20%-plus margin exit rate by fiscal 2028 and adjusted EPS growth of at least 15% annually from fiscal 2026 through fiscal 2029. 

However, near-term execution risk has increased. AECOM recorded a $337 million pre-tax charge related to higher projected costs on a delayed construction management project. Consequently, reported fiscal 2026 guidance now calls for adjusted EPS of $3.95-$4.15 and free cash flow of approximately $300 million. The project is also expected to weigh on cash flow through the first half of fiscal 2027, while delayed construction-management project starts and the Middle East conflict are pressuring net sales revenue (NSR) growth.

The Case for Jacobs Stock

Jacobs enters the comparison with stronger near-term operating momentum. Third-quarter of fiscal 2026 adjusted net revenues increased 8.3% year over year to $2.4 billion, adjusted EBITDA rose 16.7% to $367 million and adjusted EPS increased 13.6% to $1.84. Backlog surged 27.3% to a record $28.9 billion, providing substantial revenue visibility heading into fiscal 2027.

Growth is particularly strong across AI-related infrastructure. Life Sciences & Advanced Manufacturing adjusted net revenues increased 24.2% in the quarter, led by data centers and semiconductors. Direct AI build-out activity accounted for 11% of adjusted net revenues in the third quarter, with Jacobs benefiting from demand spanning data centers, semiconductors, Energy & Power and industrial water.

Jacobs is also securing sizable projects that reinforce this positioning. The company won a sole-source EPCM contract for Hut 8’s Beacon Point AI data center campus in Texas, which is designed to support one gigawatt of capacity. Meanwhile, transportation and Energy & Power remain strong contributors to its Critical Infrastructure business, providing diversification beyond AI-driven markets. 

Reflecting this momentum, Jacobs raised fiscal 2026 guidance for the third consecutive quarter. Adjusted net revenue growth is now expected at 9.5-10%, adjusted EBITDA margin at 14.7-14.8%, adjusted EPS at $7.20-$7.30 and adjusted free cash flow margin at approximately 8%.

Stock Performance & Valuation

As witnessed from the chart below, in the year-to-date period, AECOM shares have underperformed Jacobs’, the broader Construction sector and the S&P 500 Index in the year-to-date period.

Image Source: Zacks Investment Research

From a valuation standpoint, AECOM is currently trading at a discount to Jacobs on a forward 12-month price-to-earnings (P/E) ratio basis.

Image Source: Zacks Investment Research

Comparing EPS Estimate Trends: ACM vs. J

The Zacks Consensus Estimate for ACM’s fiscal 2026 and fiscal 2027 earnings has trended downward over the past 30 days to $4.48 and $5.99 per share, respectively. The revised estimates imply a year-over-year decline of 14.8% in fiscal 2026, followed by growth of 33.7% in fiscal 2027.

ACM's EPS Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for J’s fiscal 2026 earnings has increased marginally over the past 30 days to $7.26 per share, while the fiscal 2027 estimate has remained unchanged at $8.30 per share. The estimates imply year-over-year earnings growth of 18.6% and 14.3% in fiscal 2026 and fiscal 2027, respectively.

J's EPS Trend

Image Source: Zacks Investment Research

Which Stock Has More Upside Now?

Both AECOM and Jacobs are positioned to benefit from sustained infrastructure spending across transportation, water, energy, defense and other critical markets. ACM offers broad exposure to public infrastructure investment and long-term margin-expansion opportunities, while J has stronger momentum in data centers, semiconductors and AI-related infrastructure.

AECOM has meaningful long-term potential from its record backlog, expanding water and defense pipelines and targeted margin improvement. However, the $337 million construction management project charge, weaker near-term cash flow and delayed project starts remain concerns. ACM currently carries a Zacks Rank #5 (Strong Sell).

Jacobs, meanwhile, is benefiting from stronger backlog growth, improving margins and rising AI-related demand. The company has also raised its fiscal 2026 outlook for the third consecutive quarter, while the consensus estimate implies earnings growth of 18.6% in fiscal 2026 and 14.3% in fiscal 2027. J currently carries a Zacks Rank #3 (Hold).

Although AECOM offers recovery potential as its legacy project headwinds ease, Jacobs presents a more balanced combination of earnings visibility, growth momentum and execution. Overall, J has the edge over ACM at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.