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A month has gone by since the last earnings report for Jacobs Solutions (J). Shares have added about 1.7% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Jacobs Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Jacobs’ third-quarter fiscal 2026 (ended June 26, 2026) adjusted earnings met the Zacks Consensus Estimate but grew year over year. However, revenues topped the consensus mark and increased from the year-ago quarter.The quarterly results were driven by strength in the Infrastructure & Advanced Facilities (I&AF) segment because of broad-based growth witnessed across data center, semiconductor, energy & power, transportation and water sectors. Besides, the company is benefiting from rising investment tied to Artificial Intelligence infrastructure. Businesses directly related to the AI build-out represented 11% of adjusted net revenues during the quarter, including data centers, semiconductors, energy and power, water and digital services. Jacobs reported adjusted earnings of $1.84 per share for the third quarter of fiscal 2026, in line with the Zacks Consensus Estimate, but up 13.6% from $1.62 in the year-ago quarter.Gross revenues of $4.08 billion surpassed the consensus mark of $3.54 billion by 15.1% and rose 34.5% year over year. Adjusted net revenues, which exclude low-margin pass-through revenues, increased 8.3% year over year to $2.42 billion. Backlog climbed 27.3% to a record $28.89 billion.Adjusted operating profit increased 10.8% to $341.8 million year over year, while the corresponding margin improved 30 basis points (bps) to 14.1%. Adjusted EBITDA advanced 16.7% to $366.8 million, and the margin expanded 110 bps to 15.2%. I&AF segment’s revenues surged 38.8% year over year to $3.75 billion. Adjusted net revenues advanced 9.9% to $2.09 billion, reflecting entirely organic growth. Segment operating profit rose 13.6% to $268.1 million. The operating margin expanded 40 bps to 12.8%, indicating that stronger volumes and execution translated into improved profitability despite an evolving revenue mix.Life Sciences & Advanced Manufacturing delivered the strongest top-line growth. Gross revenues jumped 116.6% to $1.63 billion, while adjusted net revenues rose 24.2% to $476 million, led by data center and semiconductor activity. Critical Infrastructure gross revenues increased 7.2% to $1.23 billion, with adjusted net revenues up 9.4% to $1.01 billion. Water & Environmental gross revenues grew 10.8% to $889 million, although adjusted net revenue growth was limited to 1.5% as environmental activity offset solid water demand. PA Consulting generated revenues of $329.5 million, down about 1% from the year-ago quarter. However, operating profit increased 1.7% to $73.6 million and the operating margin expanded 50 bps to 22.3% year over year.PA Consulting backlog reached $459 million, up 9.3% year over year, supporting management’s confidence in the segment’s opportunity pipeline following the acquisition of the remaining ownership stake. Jacobs generated $456.1 million in reported operating cash flow and spent $25.1 million on capital expenditures. Adjusted free cash flow, excluding accelerated employee-related payments connected with the PA Consulting transaction, totaled $541 million. The company ended the quarter with $1.17 billion in cash and cash equivalents and $3.58 billion in long-term debt. Net leverage declined to 1.8 times adjusted EBITDA, falling below the fiscal year-end target ahead of schedule.Jacobs repurchased $142 million of shares during the quarter, bringing fiscal year-to-date buybacks to $614 million. It also declared a quarterly dividend of 36 cents per share, representing a 12.5% year-over-year increase. Management raised the midpoint of its fiscal 2026 adjusted earnings outlook for the third consecutive quarter. Adjusted earnings are now expected between $7.20 and $7.30 per share, compared with the previous range of $7.10-$7.35. Adjusted net revenue growth is projected at 9.5-10%, up from the prior 8-10.5% range. The adjusted EBITDA margin is expected between 14.7% and 14.8% (compared with 14.6-14.9% expected earlier), while the adjusted free cash flow margin is forecast at approximately 8%.The outlook reflects strong execution, record backlog and continued private-sector and utility capital spending. Jacobs also expects an extra week in the fourth quarter to benefit adjusted net revenue growth. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Jacobs Solutions has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Jacobs Solutions has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jacobs Solutions Inc. (J) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Jacobs Solutions’ second quarter results were shaped by continued momentum in its core infrastructure and advanced facilities markets, with management attributing the quarter’s performance to rising demand in life sciences, advanced manufacturing, and AI data center projects. CEO Bob Pragada pointed to “high single-digit organic growth and continued share repurchases enabled by strong free cash flow generation” as key contributors. The company also highlighted recent contract wins in water, environmental, and defense sectors, suggesting a broad-based expansion in its project pipeline. Is now the time to buy J? Find out in our full research report (it’s free). Revenue: $2.42 billion vs analyst estimates of $2.40 billion (8.3% year-on-year growth, 0.5% beat) Adjusted EPS: $1.84 vs analyst estimates of $1.83 (0.8% beat) Adjusted EBITDA: $366.8 million vs analyst estimates of $362.8 million (15.2% margin, 1.1% beat) Adjusted EPS guidance for the full year is $7.25 at the midpoint, roughly in line with what analysts were expecting Operating Margin: 11.9%, up from 10.5% in the same quarter last year Backlog: $28.89 billion at quarter end, up 27.3% year on year Market Capitalization: $17.24 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Kaplowitz (Citigroup) pressed on whether accelerating backlog growth could lead to faster revenue expansion next year. CFO Venk Nathamuni said visibility is strong but deferred specifics on the growth algorithm, stating guidance will be given next quarter. Sangita Jain (KeyBanc) asked about the timing and impact of recent Water & Environmental contract wins. CEO Bob Pragada explained these projects will begin contributing in the next quarter, supporting a return to growth in the segment. Steven Fisher (UBS) questioned the sustainability of book-to-bill ratios and whether high levels are likely to persist. Pragada described net revenue book-to-bill as consistently stable in the 1.1-1.3x range, with gross revenue figures subject to project lumpiness. Jamie Cook (Truist) inquired about margin drivers and the expected balance between I&AF and PA Consulting contributions. Nathamuni and Pragada stressed that both segments will support margin expansion, with cost synergies and high-margin consulting underpinning gains. Andrew J. Wittmann (Baird) probed on income statement adjustments and the timeline for GAAP and non-GAAP convergence. Nathamuni responded that the PA acquisition is the primary driver of remaining differences, which should diminish in upcoming quarters. In the coming quarters, the StockStory team will be monitoring (1) the conversion of record backlog into revenue, especially in AI, semiconductor, and water projects; (2) sequential improvements in the environmental segment as new contracts ramp; and (3) sustained margin expansion through global delivery and disciplined cost management. The pace of international and public sector project awards will also be key indicators of execution. Jacobs Solutions currently trades at $145.86, up from $142.68 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Senior Vice President of Investor Relations - Bert Subin Chair and Chief Executive Officer - Robert Pragada Chief Financial Officer - Venkatesh Nathamuni Operator: Hello everyone. Thank you for joining us, and welcome to the Jacobs Fiscal Third Quarter 2026 Earnings Conference Call and Webcast. I will now hand the conference over to Bert Subin, Senior Vice President of Investor Relations. Please go ahead. Bert Subin: Thank you, operator, and welcome, everyone. Following market close, we issued our earnings announcement, filed our Form 10-Q and posted a slide presentation on our website, which we'll reference during the call. I would like to refer you to Slide 2 of the presentation for information about our forward-looking statements, non-GAAP financial measures and operating metrics. Now let's turn to the agenda on Slide 3. Speaking on today's call will be Jacobs' Chair and CEO, Bob Pragada; and CFO, Venk Nathamuni. Bob will begin by providing comments on the business as well as highlights of our third quarter results, and a recap of notable awards. Venk will then provide a detailed review of our financial performance, including commentary on end market trends, cash flow and balance sheet data as well as our updated outlook. Finally, Bob will provide closing remarks. Then we'll open up the call for questions. With that, I'll turn it over to our Chair and CEO, Bob Pragada. Robert Pragada: Good afternoon, everyone, and thank you for joining us to discuss our third quarter 2026 business performance. We delivered strong results in Q3. I'll quickly highlight a few key takeaways. First, adjusted EPS grew approximately 14% to $1.84, supported by more than 8% adjusted net revenue growth, all organic, and more than 100 basis points of year-on-year margin expansion. Second, I&AF posted nearly $2.1 billion in net revenue, a 10% increase year-over-year and a quarterly record for the segment. And third, our backlog grew 27% to $29 billion, setting another new record with a trailing 12-month book-to-bill of 1.4x on gross revenue and 1.2x on net revenue. As we look ahead, we see continued strong underlying business momentum as reflected by our third consecutive guidance raise for FY '26, which Venk will walk through in more detail shortly. Turning to Slide 4. We provide a detailed overview of the quarter. We are very pleased with our Q3 results as strong operating performance paired with our lower share count drove the sixth straight quarter of double-digit growth in adjusted EPS. Our margin profile continues to trend higher with our business achieving an adjusted EBITDA margin above 15% in Q3, up over 100 basis points year-over-year and up almost 200 basis points when compared to the same period in 2024. The combination of strong annual margin expansion, high single-digit organic growth and continued share repurchases enabled by strong free cash flow generation has created a powerful earnings growth algorithm. Further, we are seeing convergence of backlog growth and overall revenue growth, and we are positioned to deliver another strong bookings performance in Q4. Turning to Slide 5. I'd like to highlight a few notable project awards from the third quarter. In Water & Environmental, Jacobs is selected to provide program management and technical environmental services to the U.S. Navy's environmental restoration program, primarily across the Mid-Atlantic and Puerto Rico. The work involves restoring contaminated sites, including PFAS and munitions related projects with the goal of reducing health and environmental risks and returning these sites to beneficial use. It extends our 40-year partnership with the Navy and underscores our leadership in delivering complex high-impact environmental solutions. This key win as well as new awards with private sector clients, gives us increased confidence we will see a return to growth in the environmental sector in coming quarters. Also in Water & Environmental, we were selected to deliver Central Utah Water District's Strawberry High Line improvement project, which will modernize roughly 40 miles of aging canal infrastructure through new pipelines, a pump station, a regulating reservoir and related facilities. By converting a historic open canal into a modern pressurized system, the project will improve long-term water reliability for agricultural and municipal users while supporting regional growth and enhanced recreation along the corridor. It's part of the district's broader Nebo Regional Water Project, an approximately $1.5 billion program designed to sustain a doubling of the area's population in the coming decades. This also includes the South Utah Valley Regional Water Treatment Plant, where Jacobs is already under contract to lead design and engineering during construction. Shifting to Life Sciences and Advanced Manufacturing. Jacobs was awarded a sole-source EPCM contract by Hut 8 to deliver Beacon Point, the company's second AI data center campus in the U.S. located in Texas, the multiphase campus is designed to support 1 gigawatt of total capacity. This award is a follow-on to Hut 8's River Bend campus in Louisiana, where Jacobs is also leading program delivery. We'll apply proven design elements from that project and deploy our data center digital twin to simulate critical assets, helping to derisk commissioning and reduce time to first revenue by accelerating the deployment of AI workloads. Initial energization is targeted for 2027. Winning a repeat sole-source contract at this scale reflects the confidence clients place in Jacobs to deliver complex AI infrastructure with speed, safety and certainty. It also builds on our standing as Engineering News-Record's #1 data center firm, a sector where we see substantial runway as AI investments increase. And finally, PA is supporting the U.K. Royal Air Force's Optimise initiatives, enabling RAF leaders to use data-driven insights to further strengthen operational readiness and decision-making in an increasingly complex environment. The work turns data into confident, evidence-led decisions that support the RAF's readiness, and it reinforces our standing as a trusted delivery partner in the defense sector, delivering high tempo programs that have real operational impact. Now please turn to Slide 6. Given the growth tailwind we are seeing from AI investments, I wanted to take a moment to quickly highlight our position in the AI infrastructure build-out. We've been serving data center clients since the 1990s and have long-standing relationships with semiconductor manufacturers that span over 50 years. Significant capital is being deployed to build AI data centers, and we have been able to grow our addressable market by expanding our scope of services, which now range from [indiscernible] advisory and design to digital twins and full program delivery. Further, the AI data center build-out is increasing capacity requirements in the semiconductor industry where we are a leading facility designer, and we are leveraging our capabilities across water, environmental, power and digital to further expand our market share with both private sector clients and utilities. For context, as of Q3, the direct AI build-out represented 11% of our adjusted net revenue up approximately 100 basis points from last quarter, and our pipeline of future opportunities continues to grow meaningfully. Now I'll turn the call over to Venk to review our financial results in further detail. Venkatesh Nathamuni: Thank you, Bob, and good afternoon, everyone. Please turn to Slide #7, where I'll walk through our results for Q3. Gross revenue increased more than 34% year-over-year, and adjusted net revenue, which excludes pass-through revenue grew by over 8%. Q3 adjusted EBITDA was $367 million, up 17%, with our margin at 15.2% or 109 basis points higher year-over-year. This resulted in adjusted EPS increasing 14% year-over-year. Consolidated backlog was up more than 27% year-over-year to a record $29 billion with our trailing 12-month book-to-bill at 1.4x. Book-to-bill was strong again in Q3, driven by good awards activity across our end markets with standout performance in the advanced manufacturing, environmental and transportation sectors. Additionally, on a year-over-year basis, net revenue and gross profit in backlog increased 11% and 14%, respectively, during Q3. We are demonstrating faster organic growth in the business today and strong recent awards activity positions us well as we look ahead to fiscal year '27. Regarding our performance by end market in Infrastructure and Advanced Facilities, let's turn to Slide #8. At a high level, we continue to see strong growth rates in Life Sciences and Advanced Manufacturing as well as in critical infrastructure during Q3. Focusing on life sciences and advanced manufacturing, net revenue grew 24% in Q3, our highest growth rate since we began reporting end markets in late 2024. Strong performance in the data center and semiconductor sectors contributed to substantial year-on-year growth, and we anticipate that this trend will continue in Q4. We're seeing high demand for new projects across life sciences and advanced manufacturing, setting us up well for the new fiscal year. Shifting to Critical Infrastructure, net revenue increased 9% year-over-year. Critical Infrastructure trends remained similar to Q2 with Transportation and Energy and Power activity leading to strong growth versus last year. We continue to expect Critical Infrastructure to grow in the mid- to high single-digit range over the medium term. Net revenue growth in our Water & Environmental end market was a little more than 1%. Net revenue growth for water remains strong. And as we indicated last quarter, we did continue to face year-over-year headwinds in the environmental sector. On a positive note, we're forecasting growth for the Water & Environmental end market to sequentially improve in Q4 based on good awards activity in the quarter. In summary, strong Life Sciences and Advanced Manufacturing performance during Q3 was complemented by good demand across the majority of our sectors. Moving now to Slide #9, I'll provide a brief overview of our segment financials. In Q3, I&AF operating profit increased 14% year-over-year on 10% net revenue growth. PA Consulting operating profit increased 2% on flattish revenue and operating margin, again came in strong at above 22%. Both segments saw only a minor operating profit growth impact from foreign exchange during the quarter. Focusing on PA, the segment experienced some temporary disruption from the recent change in governmental leadership in the U.K., which delayed project start dates. Importantly, we are already seeing a return to normal, and our forecast indicates solid quarter-on-quarter revenue growth in Q4, supported by recent awards activity, new project commencements as well as performance quarter-to-date. Now moving on to Slide 10. We provide an overview of cash generation and our balance sheet. For Q3, we generated $541 million in adjusted free cash flow which removes the impact of $110 million in payments related to proceeds for the PA transaction as we had indicated last quarter. This brings year-to-date adjusted free cash flow to $633 million. Please note, we will not make adjustments to free cash flow in Q4 and will return to providing guidance for reported free cash flow margin in fiscal year '27. Focusing on capital returns, we remain aggressive buyers of our shares during Q3 to take advantage of the dislocation in our share price. As a result, our total repurchases through Q3 rose to $614 million, which combined with dividends paid, puts us on track to return more than 100% of free cash flow to our shareholders for the second consecutive year. This brings total share repurchases since the beginning of fiscal year '25 to $1.4 billion, and we see continued runway moving forward, given our strong outlook for free cash flow. Shifting now to the balance sheet. At the end of Q3, our net leverage ratio declined to 1.8x, achieving our target for net leverage to be below 2.0x, a quarter early, and we still plan to delever to approximately 1.5x by the end of fiscal year '27. Please turn to Slide 11 for our updated fiscal year '26 outlook. We're increasing our fiscal year '26 adjusted net revenue growth range to 9.5% to 10% year-over-year, narrowing our adjusted EBITDA margin range to 14.7% to 14.8%, raising our adjusted EPS range to $7.20 to $7.30 and raising our adjusted free cash flow margin forecast to 8%. Notably, our outlook for fiscal year '26 now implies nearly 19% year-on-year growth in adjusted EPS at the midpoint. As it pertains to Q4, we expect our adjusted EBITDA margin to be approximately 16%, with year-over-year net revenue growth of approximately 14%. Furthermore, we expect our tax rate to be roughly 27.5% and a quarterly free cash flow to be approximately $150 million. Overall, we're very pleased with our year-to-date performance and our Q4 outlook highlights that we expect a strong finish to fiscal year '26. With that, I'll turn the call back over to Bob. Robert Pragada: Thank you, Venk. In closing, I'd like to express my gratitude for the trust our clients continue to place in Jacobs and to our more than 47,000 talented employees for their continued commitment to delivering excellence. We're tracking very well heading into the final quarter of the fiscal year with strong Q3 performance, enabling us to increase the midpoint of our full year adjusted EPS outlook for the third consecutive time. Our backlog is at a record level, and our pipeline continues to expand, positioning us for profitable growth in FY '27 and beyond. Operator, we'll now open the call for questions. Operator: Your first question comes from the line of Andy Kaplowitz with Citigroup. Andrew Kaplowitz: Bob or Venk, so backlog growth has obviously been accelerating over the last several quarters. I think you mentioned 1.2x book-to-bill on net revenue, as you said. So I know it's early to talk about FY '27, but your exit rate in Q4 will be in the double digit at 14%. So does that mean it's possible to grow FY '27 net revenue as faster, faster than FY '26 or at least at this point you have much higher visibility than usual towards that normal algorithm of mid- to high single-digit growth that you have? Venkatesh Nathamuni: Yes, Andy, I'll take the question. Yes. So obviously, as you pointed out, good solid growth in Q4 that we're projecting and good growth for the full year. Certainly, our backlog is in a really good position. I think we will defer specifics on the growth algorithm for fiscal '27 on the next call. But suffice it to say that looking at our current backlog position, we feel pretty good about growth at least in line with the long-term average that we put on there. Andrew Kaplowitz: Okay. That's helpful. And then you had comments about sort of the data center business in life sciences and advanced manufacturing in general. I mean it does keep increasing as a percentage of NSR. So maybe how are we thinking about that sector now versus your Investor Day 1.5 years ago, whatever it was, can you grow that business sort of double digits for the foreseeable future based on sort of what you see in maybe the share gains that you've had. Robert Pragada: Yes, Andy, we absolutely can. It's a growth engine right now, but is deep and broad for us with the entirety to that ecosystem. And if we look all the way from kind of what we're doing in the high-bandwidth memory chips, the water and power requirements that are feeding the data center and then the complexity that's going into the data center, our share is increasing, and the clients that we're working for have got long pipelines ahead. So the answer is an absolute yes. Operator: Your next question comes from the line of Sangita Jain with KeyBanc. Sangita Jain: One, I want to ask on Water & Environment, like it seems like last quarter, you had a lot of good wins, a couple of them, Bob, you highlighted in your prepared remarks. How should we think about the scope of some of those bookings and the period over which they're going to burn? I'm trying to figure out how we should think about Water & Environmental growth going forward. Robert Pragada: Yes. So Sangita, the wins that we had in the quarter will start to burn in Q4. So kind of that inflection point that we've always been telegraphing that would come at the end of the year, it's right in front of us. So you'll see sequential growth in the quarter. And then going into FY '27, we're positioned extremely well to be on those growth rates that we highlighted during the Investor Day of that mid- to high single-digit growth for Water & Environmental and the water sector continues to be high single-digit growth for us and the pipeline as well as the forward outlook is very bright. So we're excited about the sector. Sangita Jain: Got it. And then maybe one for Venk. Your SG&A as a percent of sales in 3Q was lower than it has been in a very long time. And I'm wondering if there was anything one time or if it's just a function of what you've been saying that you're going to grow your OpEx at a slower pace than your revenue, and that's starting to show maybe. Venkatesh Nathamuni: Yes, Sangita, that's exactly right. As our revenues continued to accelerate over the last several quarters and based on the guidance we provided, we made a commitment to spend less than the revenue growth rate, and that's exactly what you're seeing in terms of operating leverage. And you'll see more of that coming through in Q4 as well. Operator: Your next question comes from the line of Steven Fisher with UBS. Steven Fisher: A nice uptick there in the book-to-bill in the quarter. So as you guys look at your pipeline, how should we think about that book-to-bill from here? It seems like the growth is poised to accelerate. So with that faster burn, how sustainable do you think, say, 1.5x or better is as you accelerate? And how lumpy do you think it's going to be from here? Robert Pragada: Yes, Steve, I think if you look at the gross revenue book-to-bill versus the net revenue book-to-bill, let me kind of segregate those, the lumpiness in the gross revenue book-to-bill, where we would have a 1.5 or 1.6, you probably remember last year, we had a 1.7 for a quarter. That's going to come up and down as some of these larger full program delivery jobs are booked. But the 1.1 to 1.3-ish net revenue growth, pretty consistent. Steven Fisher: Okay. Sounds good. And then wondering if, Bob, you can give us an update on 2 things: one, Middle East activity in general, how you're managing that over there? And just international overall. Is the pace of that business picking up? Clearly, you've had some good wins. Just kind of curious on how those 2 things are developing. Robert Pragada: Yes. So Steve, maybe I'll take the second part first and then hone in on the Middle East. Internationally, we've done well. We're kind of in that 9% growth rate internationally. And that is probably more skewed a little bit to Australia and New Zealand and Asia. The Middle East is stable, and we've continued to do well there. But I'd say the European areas again, stable mid-single digits. So overall, internationally, we see some continued pipeline growth as well as stability as we look forward to the Q4 as well as into -- going into next year. Operator: Your next question comes from the line of Jamie Cook with Truist. Jamie Cook: Congrats on a nice quarter. I guess just 2 questions. One, Venk, there's still -- we're one quarter left, there still implies a significant ramp Q3 to Q4, which makes sense, like given the top line growth of 14% you're talking about. But I guess why so much variability to $0.10 around the fourth quarter, what would be the drivers behind the low end versus the high end of the guide. And then my second question, I guess, sort of what struck me about the quarter was the margin uplift then, I guess the implied 15% and then implied margins going to 16% in the fourth quarter. As I think about the trajectory for 2027 and we're thinking about a world where organic growth is accelerating and margins can expand, is it fair to say more of the margin uplift would come from I&AF versus PA Consulting or any comments you want to make around that? Venkatesh Nathamuni: Yes. First of all, thank you for your comments, Jamie. Obviously, a really good quarter. So I'll split the response into 2 halves, right? One is just focused on the net revenue growth as well as the margin expansion. So on the net revenue growth, we guided to about 14% for the quarter. As you know, we have an extra week in the Q4. So that in and of itself accounts for about, call it, 6% to 7%. So when you normalize it, we are growing at 8% for the quarter. So given the fact that we grew 7.5%, 8% or 8.3% in Q3, we see good line of sight to be able to grow to 14% for Q4. That's number one. It's driven by the fact that the program ramps that we talked about in Q3 and in Q2, they are now coming into full fruition in Q4, which drives up utilization, and we have good visibility into that. So that's from a revenue perspective. When you look at it from a margin perspective, we've done a pretty good job of increasing our margins sequentially over the last 3 quarters as well as year-on-year. As you recall, I think we started the year at 13.4%. We went to 14.1%. And in this quarter, we had 15.2%. So 110 basis points of sequential growth as well as good year-on-year growth and what we're guiding for in Q4 is 16%. So really good line of sight to be able to achieve that with the increased utilization that we talked about as well as increased use of global delivery. So a really good visibility into achieving those targets for both revenue as well as EBITDA margin. Robert Pragada: And Jamie, I think on the question that you had with regards to '27 and where we could see that continued margin expansion, I'd say it's pretty balanced that we would continue to get it from both I&AF as well as PA Consulting because we're right in the middle of the cost synergies that we're working on with PA consulting. Just as a reminder, PA Consulting does have the highest margins in that space. So we're continuing to grow on a base that's really high. Operator: Your next question comes from the line of Andrew Wittmann with Baird. Andrew J. Wittmann: Yes. Great. So I just -- I think I heard a comment that you said in the fourth quarter, you're going to report free cash flow without any adjustments, and that's great. Is there a similar comment that you can make like that related to your income statement? I know that, obviously, over a year ago, you announced some actions for the I&AF segment. But now, Bob, you just mentioned that you're kind of integrating PA. So what should the investment community expect in terms of income statement adjustments between GAAP and non-GAAP, and not just maybe for 4Q, but how long are you going to continue to recognize something there? And when can those 2 converge. Venkatesh Nathamuni: Yes, Andy, I'll take that question. I would say, obviously, you've seen with this Q3 print, the gap between GAAP and non-GAAP EPS was primarily driven by just a tax item. But overall, you've seen a pretty significant convergence between our GAAP and non-GAAP numbers, except for the PA acquisition. So from that standpoint, we feel pretty good about the quality of the earnings, and we will continue to make additional progress in Q4 and beyond. You'll see it from both the P&L side as well as on the free cash flow side. And we've already taken M&A off the table. So you don't have to expect a lot of these variances between GAAP and non-GAAP going forward. So our view is that with Q4, as we stated on the Q3 call, the fact that there was a tax delta because of how the PA compensation expenses was treated. So that will have an impact on Q4 because it's for the full fiscal year. But going forward, that gap will reduce substantially and will be more in line with our non-GAAP and GAAP tax rates. Andrew J. Wittmann: Got it. I guess just on my follow-up then, I wanted to dig in on the environmental side. Obviously, it sounds like you had some wins here in 3Q that are going to help that growth rate improve in 4Q. Just was hoping you'd be a little bit more specific. Are these -- is there a general context to something? Is it state and local? Is this federal money flowing better? Is this PFA -- I mean, there's lots of different things that you do in this and just thought that since this is an area that seems to be undergoing a little bit better momentum, maybe you'd want to elaborate on that a little bit more. Robert Pragada: Yes, Andy, happy to. So we had 2 sizable wins in the private sector. And unfortunately, I can't name the 2 clients, but they are in the industrial space. So private sector industrial space long-term contracts that we won, and we were successful in the book-to-bill, ironically are -- as a result in the quarter was over 1.3 just for the environmental business. So that balance between private and public, we're holding true to it because in the public sector, those things that you just mentioned with regards to PFAS and the DoD continuing to go back to some of those regulatory items that got paused in 2025. We're capitalizing on that work, too. So going into FY '27, we're feeling confident that our environmental business will return back to the levels that we previously had. Operator: Your next question comes from the line of Chad Dillard with Bernstein. Charles Albert Dillard: So question for you guys on the Infrastructure and Advanced Facilities business. It looks like on a constant currency basis, margins were up about 50 basis points. Can you talk about some of the moving parts there? How much is mix? How much is pricing? How much was leverage from technology? And then as we're thinking through our 2027 bridge, how do you think about that opportunity going forward? Robert Pragada: Yes. So Chad, thanks for the question. So I'd say, as you pointed out, good expansion in margins both sequentially as well as on a year-over-year basis. As you may recall, when we announced our margin trajectory at the February 2025 Investor Day, we laid out specific things in terms of the drivers of that margin. I'd say we've shown, as Sangita pointed out earlier, good operating leverage that continues to be a part of the core principle to drive continued margin expansion. So that will be a main stay going forward. But in addition to that, with the other 3 buckets you might recall, we talked about mix. We talked about the commercial models and then also use of global delivery really good progress in global delivery, especially with our life sciences and advanced manufacturing businesses use a lot of global delivery implementation. So that's driving a lot of the margin expansion. I'd say on the mix side, you'll see more of an impact coming in FY '27 and beyond, but operating leverage and global delivery are the bigger drivers in the first, call it, 4 to 5 quarters since we announced the targets. So well on track in terms of margin expansion. And just for everybody's benefit, you'll recall that in fiscal year '25, we increased our margins by 110 basis points. And in fiscal year '26, at the midpoint of the guidance that we provided, that will represent another 90 basis points of margin expansion. So 200 basis points of margin expansion, which we think is industry leading, and we have lots more margin expansion ahead of us as well. Charles Albert Dillard: Great. That's helpful. And then second question is on data centers. So with the shift from 54-volt to 800-volt architecture, are you starting to see those sorts of data centers coming through your design pipeline, how does the design intensity change when you're making that shift? Any color you think about that? Robert Pragada: Yes. There's complexities that are going on, Chad, that I'd say is increasing our scope. So that 800-volt DC solid-state transformer is a big deal has been well publicized. But I'd say -- I wouldn't point to that as the single source of that inflection point. The complexity in all of the utility requirements to feed the next generation of chips is increasing the complexity as well as the scale. And so that's where kind of -- it's in the sweet spot of Jacobs. And so if we look at the clients that we're working for, not just the hyperscalers, but also the neo clouds, we're on that journey with them. And hence, you can see the results in our performance. Operator: Your next question comes from the line of Michael Dudas with Vertical Research. Michael Dudas: Bob, just maybe you could share some further thoughts on critical infrastructure and the tone of the types of business and what the areas, say with highway, maybe any brief comments on what may happen out of the next IIJA bill. And on PA, with the change in government should be helpful, but anything with the integration over the past several months and how that could drive some more growth in some maybe the business with your current customers in the U.S. or other parts of the world to help drive helpful on the margin and also the growth for PA itself. Robert Pragada: Sounds great. So a lot there, Mike. Let me kind of take one at a time with regards to critical infrastructure, again, really solid growth. Just as a kind of a recap, that vertical contains our transportation business, Energy & Power and Cities & Places. Our Transportation business continues to be a real growth vector for us in all geographies and growing at a high single-digit rate. I'd say the subsectors that are channeling that growth are around aviation, the rail business globally as well as in the ports and maritime world. Highways and bridges was a nice element in Q3. But those 3, we've got a market-leading position there, and we're seeing a lot of activity there. E&P has been really, really strong, double-digit growth predominantly in the U.S. around our T&D efforts, and I'd say outside the U.S., more on the generation side. And so if you think SuedLink or Marinus Link, the renewables effort that's going on outside the U.S. has really been a nice growth trajectory for us. And then in Cities & Places, nice growth in the U.S. That Cities & Places team has some really, really strong building design capabilities, which we're able to not only apply to venues, but also has been with the resource needs that we have in data centers. The team has really been facilitating that growth that we're seeing in the data center business. I'd say probably the one area that we continue to monitor is a bit of, I'd say, a temporarily pause in the Middle East. So grew in the Middle East overall because of our utility work. But that would be the only area where I'd say a little bit of a pause, but definitely some pipeline work that would show upside next year. On IIJA, we actually feel -- we've been saying this for a while. With a possible extension going into December, we feel like the funding flows coming from IIJA will continue. We've always said that there was always a 2- to 3-year lag from the expiry date just as monies are obligated and then spent, we're still kind of at that 50% level spend. And so going into the midterms and coming out of the midterms and everything that's being set up for Build America 250 hopefully next year, the funding levels have been pretty solid as a result of those stimulus bills, and we'll continue on, feeding all those things that I aforementioned around transportation. PA, I'd say the areas where we're starting to see some real growth, again, notwithstanding my comment in Q3 on the kind of the temporary disruption that we're already seeing to see come back in July. Defense and security in Europe as the U.K. MOD has taken a leadership position on what an independent Europe defense posture looks like, PA is right in the middle of that. And the synergies with the U.S. with Jacobs, in the I&AF business on setting up that defense infrastructure, whether it be ports and maritime or manufacturing facilities for the defense primes, is something that we've already started to see some nice progress there. And the transportation in the U.S., PA has got a strong presence in the U.K., and that's serving as a nice synergistic value as we look at the U.S. and the revenue synergies coming out of the PA relationship. So hopefully, that gives you kind of a broader overview. Operator: Your next question comes from the line of Jerry Revich with Wells Fargo. Andrew Azzi: This is Andrew Azzi on for Jerry Revich. I just wanted to ask, last quarter, you saw a significant expansion in the AI specific data center infrastructure pipeline. I was curious if we can get an update on how that's progressing this quarter. How much of that pipeline is awarded or in backlog? And what's kind of the conversion rate that you're embedding into your guidance and maybe even into next year? Robert Pragada: Yes. Maybe I'll take the front part of that and then, Venk, you can take kind of how much of that is in backlog. So Andrew, our backlog growth just in the data center space is -- has been significant. And I'd say kind of in the order of doubling over the period of time, the pipeline has gone up 3x. And so the visibility that we see before it was probably 6 to 9 months, we're getting visibility into the pipeline that extends out 2 to 3 years. And so this is something that we see. And again, we're being selective because there is also a lot of speculative work that's out there. So the work that we are pursuing or let me back up, winning, executing and continue to pursue are those where they're established customers of ours that we've had for a while, the neo cloud providers are coming in are normally backed by folks that we've known for a long time within the hyperscale world. So overall, really strong trajectory in the data center space. Venkatesh Nathamuni: Yes. And extended beyond data centers into just the overall AI ecosystem, you recall last quarter, we said it was roughly 10% of our business. Now it's at 11% and the growth is actually accelerating. So we are doing a good job of converting that backlog into real revenue and that's driving not only growth for us in Q4, but we expect significant growth in fiscal '27, which we'll quantify. I also want to add to this, the previous question about revenue synergies. Obviously, AI is a big part of what PA does as well in terms of implementing agentic AI for not only their clients, but it's an opportunity for us to also use it internally, both within the PA ecosystem as well as the Jacobs ecosystem. So AI is really a big driver of our growth for us, and you've seen that being demonstrated in terms of our revenue growth, but also over time with margin expansion. Andrew Azzi: I appreciate that. I guess, secondly, are customers kind of still indicating that the U.S. semiconductor construction activity is accelerating and maybe what are your -- some of your early thoughts for FY '27 on that front? Robert Pragada: Short answer, Andrew, is absolutely yes. Our customers are pushing us to accelerate those designs. And we're working for the largest high-bandwidth memory chip manufacturer in the U.S. today. So that pipeline continues to grow. And now with some of the announcements that you've heard from Intel moving forward, as we have publicly stated, we've been the engineer of record for Intel for a couple of decades. And that relationship, we stayed with them during this kind of slower time. And we're starting to see that pipeline grow going into '27. Operator: There are no further questions at this time. I will now turn the call back to Bob Pragada for closing remarks. Robert Pragada: Well, thank you, everyone, for joining us for our earnings call. We look forward to engaging with many of you over the coming weeks and have a great evening. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Jacobs Solutions, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Jacobs Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jacobs Solutions (J) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record backlog of $29 billion, driven by a 1.4x gross book-to-bill and strong demand across advanced manufacturing and transportation sectors. Direct AI infrastructure build-out now represents 11% of adjusted net revenue, up 100 basis points sequentially, as the company leverages long-standing semiconductor and data center relationships. Delivered 109 basis points of year-over-year margin expansion through improved operating leverage, increased utilization, and the strategic use of global delivery centers. Infrastructure and Advanced Facilities (I&AF) segment reached record quarterly net revenue of $2.1 billion, supported by a 24% growth rate in Life Sciences and Advanced Manufacturing. Environmental sector headwinds are beginning to stabilize, with recent large-scale private sector industrial wins expected to drive a return to growth in coming quarters. PA Consulting experienced temporary disruption due to the U.K. governmental leadership change, though management reports a return to normal activity levels in July. Increased fiscal year 2026 adjusted EPS guidance to $7.20-$7.30, implying nearly 19% year-over-year growth at the midpoint. Q4 guidance assumes approximately 14% net revenue growth, including a 6-7% contribution from an extra week in the fiscal period. Management expects adjusted EBITDA margins to reach approximately 16% in Q4, supported by program ramps and cost synergy realization within PA Consulting. Targeting a net leverage reduction to approximately 1.5x by the end of fiscal year 2027, following the achievement of the sub-2.0x target a quarter early. Anticipate sustained funding flows from IIJA through fiscal year 2027, noting that only about 50% of allocated funds have been spent to date. The gap between GAAP and non-GAAP EPS in Q3 was primarily attributed to a tax item related to PA Consulting compensation expenses. Management noted a temporary pause in Middle East critical infrastructure activity, though utility-related work provided a partial offset. The company has ceased M&A-related adjustments to free cash flow starting in Q4, signaling a shift toward more standardized reporting. Data center pipeline visibility has extended from 6-9 months to 2-3 years, though management remains selective to avoid speculative projects. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed these sectors are primary growth engines with deep pipelines, particularly in high-bandwidth memory chips and utility requirements. Jacobs is increasing its market share by expanding scope into digital twins and full program delivery for hyperscalers and neo-cloud providers. Expansion is driven by a combination of operating leverage, global delivery implementation, and commercial model shifts. Management expects balanced contributions from both I&AF and PA Consulting, with PA benefiting from ongoing cost synergies. The recent change in U.K. leadership caused temporary project start delays, but the segment is already seeing a return to normal commencement rates. Strong demand in European defense and security is expected to drive future growth as the U.K. MOD redefines its defense posture. The sector saw a book-to-bill over 1.3x in Q3, driven by two sizable private sector industrial contracts. Public sector growth is expected to resume as the DoD addresses regulatory items that were previously paused.

Interested in Jacobs Solutions Inc.? Here are five stocks we like better. Jacobs raised its fiscal 2026 outlook for the third consecutive quarter, targeting 9.5%–10% adjusted net revenue growth, a 14.7%–14.8% EBITDA margin and adjusted EPS of $7.20–$7.30. Third-quarter adjusted EPS rose about 14% to $1.84, while adjusted EBITDA increased 17% to $367 million. Record backlog of $29 billion, up more than 27% year over year, supports expectations for continued growth into fiscal 2027. Strong demand came from advanced manufacturing, semiconductors and AI data-center infrastructure, with direct AI infrastructure reaching 11% of adjusted net revenue. Jacobs generated $541 million in third-quarter adjusted free cash flow and repurchased $614 million of shares through the quarter. Net leverage fell to 1.8%, reaching its below-2.0x target one quarter ahead of schedule. Jersey Mike's Serves Fresh Gains After IPO Stumble Jacobs Solutions (NYSE:J) reported fiscal third-quarter 2026 results marked by organic revenue growth, margin expansion and a record backlog, prompting the company to raise its full-year outlook for the third consecutive quarter. Chair and CEO Bob Pragada said adjusted earnings per share increased approximately 14% year over year to $1.84, supported by more than 8% adjusted net revenue growth and more than 100 basis points of margin expansion. The company recorded its sixth consecutive quarter of double-digit adjusted EPS growth, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure Adjusted EBITDA rose 17% to $367 million, while adjusted EBITDA margin reached 15.2%, up 109 basis points from a year earlier, according to CFO Venk Nathamuni. Gross revenue increased more than 34%, while adjusted net revenue, excluding pass-through revenue, grew more than 8%. Consolidated backlog rose more than 27% year over year to a record $29 billion. Jacobs reported trailing-12-month book-to-bill ratios of 1.4x on gross revenue and 1.2x on net revenue. Net revenue and gross profit in backlog increased 11% and 14%, respectively, from the prior year. → 3 Drone Stocks That Should Soar After the Summer Slump Large Caps Across Planes, Tech and Oil Announce Over $10 Billion in Buybacks Pragada said the company sees “convergence of backlog growth and overall revenue growth” and expects another strong bookings performance in the fiscal fourth quarter. Nathamuni said the backlog position provides confidence that fiscal 2027 growth can at least align with the company’s previously stated long-term average, though he deferred specific fiscal 2027 guidance until the next earnings call. For fiscal 2026, Jacobs raised its outlook for adjusted net revenue growth to 9.5% to 10%. The company narrowed its adjusted EBITDA margin forecast to 14.7% to 14.8% and increased its adjusted EPS outlook to $7.20 to $7.30. The midpoint of the EPS range implies nearly 19% year-over-year adjusted EPS growth, Nathamuni said. → Why Rare Earth Processing Could Be the Real 2027 Opportunity For the fourth quarter, Jacobs expects approximately 14% year-over-year net revenue growth, adjusted EBITDA margin of about 16%, a tax rate near 27.5%, and approximately $150 million in free cash flow. Infrastructure & Advanced Facilities, or I&AF, generated nearly $2.1 billion in net revenue, a quarterly record for the segment. Segment operating profit increased 14% on 10% net revenue growth. Within I&AF, life sciences and advanced manufacturing net revenue climbed 24% year over year, the company’s highest reported growth rate in that end market since it began disclosing end-market results in late 2024. Data center and semiconductor activity were major contributors, and Jacobs expects the trend to continue in the fourth quarter. Direct AI infrastructure build-out represented 11% of adjusted net revenue as of the third quarter, up about 100 basis points from the previous quarter. Pragada said Jacobs has expanded its data center scope from technical advisory and design to digital twins and full program delivery, while also applying water, environmental, power and digital capabilities to support both private-sector clients and utilities. Among its awards, Jacobs received a sole-source engineering, procurement and construction management contract from Hut 8 for the Beacon Point AI data center campus in Texas. The multiphase site is designed to support 1 gigawatt of total capacity, with initial energization targeted for 2027. Jacobs is also leading program delivery for Hut 8’s River Bend campus in Louisiana. In the semiconductor market, Pragada said customers are pushing the company to accelerate designs. He said Jacobs is working for the largest high-bandwidth memory chip manufacturer in the U.S. and is seeing its pipeline grow, including through its longstanding relationship with Intel. Critical infrastructure net revenue increased 9% in the quarter, led by transportation and energy and power activity. Nathamuni said Jacobs continues to expect the end market to grow at a mid-to-high single-digit rate over the medium term. Pragada said transportation growth was led by aviation, rail, ports and maritime, with highways and bridges also contributing during the third quarter. Energy and power posted double-digit growth, primarily from U.S. transmission and distribution activity, while international growth was supported by generation and renewable-energy work. Water and environmental net revenue grew slightly more than 1%, as strength in water was partly offset by continuing year-over-year environmental headwinds. The company expects sequential improvement in the fourth quarter following recent awards activity. Jacobs was selected to provide program management and technical environmental services for the U.S. Navy’s Environmental Restoration Program across the Mid-Atlantic and Puerto Rico. The work includes contaminated-site restoration, including PFAS and munitions-related projects. The company also won the Central Utah Water Conservancy District’s Strawberry High Line Improvement Project, part of the broader approximately $1.5 billion Nebo Regional Water Project. Pragada said environmental awards during the quarter included two sizable, unnamed private-sector industrial contracts, along with public-sector opportunities involving PFAS and Department of Defense regulatory work. He said the environmental business posted book-to-bill above 1.3x for the quarter and is expected to return to its prior growth levels in fiscal 2027. Jacobs generated $541 million in adjusted free cash flow in the third quarter, excluding $110 million of payments related to proceeds from the PA transaction. Year-to-date adjusted free cash flow totaled $633 million. The company repurchased $614 million of shares through the third quarter, bringing total repurchases since the beginning of fiscal 2025 to $1.4 billion. Including dividends, Jacobs said it is on track to return more than 100% of free cash flow to shareholders for the second consecutive year. Net leverage declined to 1.8x, reaching the company’s below-2.0x target one quarter early. Jacobs still plans to reduce net leverage to about 1.5x by the end of fiscal 2027. PA Consulting operating profit increased 2% on roughly flat revenue, while its operating margin remained above 22%. Nathamuni said a recent change in U.K. government leadership temporarily delayed project starts, but the company has seen a return toward normal conditions and expects solid sequential revenue growth in the fourth quarter. Management said future margin expansion should be supported by operating leverage, greater use of global delivery and business mix. Pragada added that Jacobs expects margin improvement to be balanced between I&AF and PA Consulting as it advances cost synergies at PA. Jacobs Solutions Inc, commonly known as Jacobs, is a global professional services firm that provides technical, engineering, scientific and project delivery expertise across a broad range of industries. Founded in 1947 by Joseph J. Jacobs in Pasadena, California, the company evolved from a regional engineering consultancy into a diversified provider of design, program and construction management, operations and maintenance, and scientific services for complex infrastructure and industrial programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jacobs Solutions Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Jacobs Solutions Inc.’s J third-quarter fiscal 2026 (ended June 26, 2026) adjusted earnings met the Zacks Consensus Estimate but grew year over year. However, revenues topped the consensus mark and increased from the year-ago quarter’s figure.The quarterly results were driven by strength in the Infrastructure & Advanced Facilities (I&AF) segment because of broad-based growth witnessed across data center, semiconductor, energy & power, transportation and water sectors.Besides, the company is benefiting from rising investment tied to Artificial Intelligence infrastructure. Businesses directly related to the AI build-out represented 11% of adjusted net revenues during the quarter, including data centers, semiconductors, energy and power, water and digital services. J stock tumbled 2.4% during yesterday’s after-hours trading session, despite management’s approach of raising fiscal 2026 expectations. Jacobs reported adjusted earnings of $1.84 per share for the third quarter of fiscal 2026, in line with the Zacks Consensus Estimate, but up 13.6% from $1.62 in the year-ago quarter.Gross revenues of $4.08 billion surpassed the consensus mark of $3.54 billion by 15.1% and rose 34.5% year over year. Adjusted net revenues, which exclude low-margin pass-through revenues, increased 8.3% year over year to $2.42 billion. Backlog climbed 27.3% to a record $28.89 billion. Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote Adjusted operating profit increased 10.8% to $341.8 million year over year, while the corresponding margin improved 30 basis points (bps) to 14.1%. Adjusted EBITDA advanced 16.7% to $366.8 million, and the margin expanded 110 bps to 15.2%. I&AF segment’s revenues surged 38.8% year over year to $3.75 billion. Adjusted net revenues advanced 9.9% to $2.09 billion, reflecting entirely organic growth. Segment operating profit rose 13.6% to $268.1 million. The operating margin expanded 40 bps to 12.8%, indicating that stronger volumes and execution translated into improved profitability despite an evolving revenue mix.Life Sciences & Advanced Manufacturing delivered the strongest top-line growth. Gross revenues jumped 116.6% to $1.63 billion, while adjusted net revenues rose 24.2% to $476 million, led by data center and semiconductor activity.Critical Infrastructure gross revenues increased 7.2% to $1.23 billion, with adjusted net revenues up 9.4% to $1.01 billion. Water & Environmental gross revenues grew 10.8% to $889 million, although adjusted net revenue growth was limited to 1.5% as environmental activity offset solid water demand. PA Consulting generated revenues of $329.5 million, down about 1% from the year-ago quarter. However, operating profit increased 1.7% to $73.6 million and the operating margin expanded 50 bps to 22.3% year over year.PA Consulting backlog reached $459 million, up 9.3% year over year, supporting management’s confidence in the segment’s opportunity pipeline following the acquisition of the remaining ownership stake. Jacobs generated $456.1 million in reported operating cash flow and spent $25.1 million on capital expenditures. Adjusted free cash flow, excluding accelerated employee-related payments connected with the PA Consulting transaction, totaled $541 million. The company ended the quarter with $1.17 billion in cash and cash equivalents and $3.58 billion in long-term debt. Net leverage declined to 1.8 times adjusted EBITDA, falling below the fiscal year-end target ahead of schedule.Jacobs repurchased $142 million of shares during the quarter, bringing fiscal year-to-date buybacks to $614 million. It also declared a quarterly dividend of 36 cents per share, representing a 12.5% year-over-year increase. Management raised the midpoint of its fiscal 2026 adjusted earnings outlook for the third consecutive quarter. Adjusted earnings are now expected between $7.20 and $7.30 per share, compared with the previous range of $7.10-$7.35.Adjusted net revenue growth is projected at 9.5-10%, up from the prior 8-10.5% range. The adjusted EBITDA margin is expected between 14.7% and 14.8% (compared with 14.6-14.9% expected earlier), while the adjusted free cash flow margin is forecast at approximately 8%.The outlook reflects strong execution, record backlog and continued private-sector and utility capital spending. Jacobs also expects an extra week in the fourth quarter to benefit adjusted net revenue growth. Jacobs currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Quanta’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecast to be in the $2-$2.5 billion range. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jacobs Solutions Inc. (J) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted EPS: $1.84, up approximately 14% year-over-year. Adjusted Net Revenue Growth: More than 8% year-over-year, all organic. Adjusted EBITDA: $367 million, up 17% year-over-year. Adjusted EBITDA Margin: 15.2%, up 109 basis points year-over-year. Gross Revenue Growth: Increased more than 34% year-over-year. Backlog: Record $29 billion, up 27% year-over-year. Book-to-Bill (Trailing 12-Month): 1.4 times on gross revenue and 1.2 times on net revenue. Infrastructure & Advanced Facilities (I&AF) Net Revenue: Nearly $2.1 billion, a 10% increase year-over-year and a quarterly record. I&AF Operating Profit: Increased 14% year-over-year. PA Consulting Operating Profit: Increased 2% on flattish revenue, with operating margin above 22%. Life Sciences & Advanced Manufacturing Net Revenue Growth: 24% in Q3. Critical Infrastructure Net Revenue Growth: 9% year-over-year. Water & Environmental Net Revenue Growth: A little more than 1%. Adjusted Free Cash Flow (Q3): $541 million, bringing year-to-date to $633 million. Share Repurchases (Year-to-Date): $614 million. Net Leverage Ratio: Declined to 1.8 times. FY26 Adjusted EPS Outlook: Raised to $7.20 to $7.30. FY26 Adjusted Net Revenue Growth Outlook: Raised to 9.5% to 10%. FY26 Adjusted EBITDA Margin Outlook: Narrowed to 14.7% to 14.8%. FY26 Adjusted Free Cash Flow Margin Outlook: Raised to 8%. Warning! GuruFocus has detected 5 Warning Signs with J. Is J fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EPS grew approximately 14% to $1.84, with over 8% organic adjusted net revenue growth and more than 100 basis points of year-on-year margin expansion. Backlog reached a record $29 billion, up 27% year-over-year, with a trailing 12-month book-to-bill of 1.4 times on gross revenue and 1.2 times on net revenue. Adjusted EBITDA margin exceeded 15% in Q3, up over 100 basis points year-over-year and nearly 200 basis points compared to the same period in 2024. Strong performance in life sciences and advanced manufacturing, with net revenue growing 24% in Q3, driven by data center and semiconductor sectors. Raised fiscal year 2026 guidance for the third consecutive time, with adjusted EPS now expected to grow nearly 19% year-over-year at the midpoint. Generated $541 million in adjusted free cash flow in Q3, bringing year-to-date to $633 million, and returned over 100% of free cash flow to shareholders for the second consecutive year. Net leverage declined to 1.8 times, achieving the target of below 2.0 times a quarter early, with plans to delever to approximately 1.5 times by end of fiscal year 2027. Water and environmental end market net revenue growth was only a little more than 1% due to continued year-over-year headwinds in the environmental sector. PA Consulting experienced temporary disruption from the recent change in UK governmental leadership, which delayed project start dates. The company noted a temporary pause in Middle East activity, with growth there only due to utility work, though pipeline suggests upside next year. Adjusted free cash flow guidance for Q4 is expected to be approximately $150 million, a significant decline from Q3's $541 million, partly due to no further adjustments. The gap between GAAP and non-GAAP EPS remains, primarily due to tax items related to the PA acquisition, which may persist into Q4. The company faces potential lumpiness in gross revenue book-to-bill due to large full program delivery jobs, which could cause quarterly volatility. Q: Given the strong backlog growth and the 14% net revenue growth expected in Q4, is it possible to grow FY '27 net revenue faster than FY '26, or at least have much higher visibility than usual toward the mid to high single-digit growth algorithm?A: Unidentified Company Representative (CFO): While specifics on the FY '27 growth algorithm will be deferred to the next call, the current record backlog position provides confidence in achieving growth at least in line with the long-term average of mid to high single-digit growth. Q: Can you provide an update on the AI-specific data center infrastructure pipeline, how much is in backlog, and the conversion rate embedded in guidance?A: Robert Pragada (CEO): Backlog growth in the data center space has been significant, roughly doubling, while the pipeline has grown threefold. Visibility has extended from six to nine months out to two to three years. The company is being selective, focusing on established customers and neo-cloud providers backed by known hyperscaler figures. Venkatesh Nathamuni (CFO) added that the AI ecosystem now represents 11% of adjusted net revenue, up from 10% last quarter, with accelerating growth and significant expected contribution in FY '27. Q: With the strong Q3 results and the implied margin ramp to 16% in Q4, is it fair to say more of the margin uplift in FY '27 will come from I&AF versus PA Consulting?A: Robert Pragada (CEO): The margin expansion in FY '27 is expected to be balanced between both I&AF and PA Consulting. The company is in the middle of realizing cost synergies with PA Consulting, which already has the highest margins in its space, so growth is occurring on a high base. Q: Can you elaborate on the drivers of the margin expansion in the Infrastructure & Advanced Facilities (I&AF) segment, and how should we think about the opportunity going forward?A: Unidentified Company Representative (CFO): Margin expansion is driven by operating leverage, global delivery, mix, and commercial models. Global delivery, especially in life sciences and advanced manufacturing, is a significant driver. Mix will have a larger impact in FY '27 and beyond. The company is on track to deliver 200 basis points of cumulative margin expansion over FY '25 and FY '26, which is considered industry-leading. Q: How should we think about the scope of the recent water and environmental wins and the period over which they will burn, given the sector's growth trajectory?A: Robert Pragada (CEO): The wins in Q3 will begin to contribute to revenue in Q4, marking the inflection point for the sector. The company is positioned for mid to high single-digit growth in water and environmental, with the water sector continuing to grow at high single digits. Q: Can you provide more specifics on the drivers behind the improved momentum in the environmental sector?A: Robert Pragada (CEO): The company secured two sizable, long-term wins in the private industrial space, which contributed to a book-to-bill of over 1.3x for the environmental business in the quarter. Additionally, the company is capitalizing on public sector work, including PFAS and DoD-related projects that were paused in 2025, providing confidence for a return to previous growth levels in FY '27. Q: Can you provide an update on the critical infrastructure business, including the tone of business in areas like highways, the potential impact of the next IIJA bill, and the integration of PA Consulting?A: Robert Pragada (CEO): Critical infrastructure is seeing solid growth, with transportation growing at a high single-digit rate, driven by aviation, rail, and ports. Energy & Power is growing at double digits, led by T&D in the US and generation projects internationally. The company expects IIJA funding flows to continue, with a potential extension into December. PA Consulting is seeing growth in defense and security in Europe, and there are early signs of revenue synergies with Jacobs in defense infrastructure and US transportation. Q: Are customers still indicating that US semiconductor construction activity is accelerating, and what are your early thoughts for FY '27?A: Robert Pragada (CEO): Yes, customers are pushing to accelerate designs. The company works with the largest high-bandwidth memory chip manufacturer in the US. As the engineer of record for Intel for decades, Jacobs is seeing the pipeline grow again going into FY '27 following recent announcements. Q: With the shift to 800-volt architecture in data centers, are you seeing those projects come through your design pipeline, and how does the design intensity change?A: Robert Pragada (CEO): The complexity of utility requirements to feed next-generation chips is increasing, which plays to Jacobs' strengths. The shift to 800-volt DC and solid-state transformers is a significant factor, but the overall complexity and scale of projects are expanding scope. The company is working with hyperscalers and neo-clouds on this journey, which is reflected in performance. Q: Can you discuss the sustainability of the book-to-bill ratio, given the accelerating growth and potential lumpiness?A: Robert Pragada (CEO): The gross revenue book-to-bill can be lumpy, with quarters potentially reaching 1.5x or higher due to large full-program delivery jobs. However, the net revenue book-to-bill of 1.1x to 1.3x is expected to remain consistent. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Robust Q3 gross revenue and adjusted net revenue growth of 34% and 8% y/y, respectively Record backlog of $28.9 billion, up 27% y/y, with TTM book-to-bill ratio of 1.4x (1.2x adj. NR) Engineering News-Record (ENR) ranks Jacobs #1 in 18 categories including data centers, up 6 y/y Generated $456 million in cash from operations in Q3, resulting in strong free cash flow Repurchased $142 million of Jacobs shares in Q3, $614 million year-to-date Raising FY 2026 guidance for the third consecutive quarter, reflecting strong business momentum DALLAS, August 04, 2026--(BUSINESS WIRE)--Jacobs Solutions Inc. (NYSE: J) today announced its financial results for the fiscal third quarter ended June 26, 2026. Q3 2026 Highlights1: Gross revenue of $4.1 billion up 34.5% y/y; adjusted net revenue2 of $2.4 billion up 8.3% y/y GAAP net earnings of $137.4 million (vs. net earnings of $181.2 million in Q3 2025) with GAAP net earnings reflecting a temporarily higher tax rate associated with the PA acquisition transaction; adjusted EBITDA2 of $366.8 million increased 16.7% y/y GAAP EPS of $1.16 (vs. EPS of $1.56 in Q3 2025) with GAAP EPS reflecting a temporarily higher tax rate associated with the PA acquisition transaction; adjusted EPS2 of $1.84 increased 13.6% y/y Backlog of $28.9 billion up 27.3% y/y Q3 book-to-bill of 1.5x (1.4x TTM); Q3 adjusted net revenue book-to-bill of 1.1x (1.2x TTM) Jacobs' Chair and CEO Bob Pragada commented, "We delivered robust overall third quarter results driven by strength in Infrastructure & Advanced Facilities (I&AF) as segment gross revenue increased 39% year-on-year and adjusted net revenue increased 10% - all organic. Within I&AF, revenue growth was broad-based, led by the Data Center, Semiconductor, Energy & Power, Transportation and Water sectors. Our private sector and utility clients continue to boost capital spending, contributing to accelerating organic growth in our I&AF segment and record performance in our Life Sciences & Advanced Manufacturing end market. Importantly, we are seeing diversified revenue growth. The combination of strong execution, a record backlog position and a rising pipeline of opportunities across both I&AF and PA Consulting gives us confidence in our long-term trajectory. Focusing on FY26, we are raising the midpoints of our guidance for adjusted net revenue growth and adjusted EPS for the third consecutive time this year." Jacobs' CFO Venk Nathamuni added, "We're very pleased with our Q3 performance. We are now well ahead of our initial FY26 expectations and remain on track to reach or exceed all of our FY29 targets. As spending on the AI build-out has ramped up, we have been able to leverage our cross-cutting portfolio of solutions to help deliver increasingly complex manufacturing and compute facilities. Top-tier revenue growth, paired with good operating performance, drove solid quarter-over-quarter improvement in our margin profile, which was further complemented by $456 million in reported cash generated from operating activities during Q3. The resulting increase in free cash flow helped reduce our net leverage to below our year-end target, even as we repurchased $614 million of our shares year-to-date. In summary, we are exiting Q3 in a very strong financial position with good momentum in our business as we prepare for the next fiscal year." Financial Outlook3 The Company’s outlook for fiscal 2026 is for adjusted net revenue to grow 9.5% to 10.0% over fiscal 2025 (versus prior forecast of 8.0% to 10.5%), adjusted EBITDA margin to range from 14.7% to 14.8% (versus prior forecast of 14.6% to 14.9%), adjusted EPS to range from $7.20 to $7.30 (versus prior forecast of $7.10 to $7.35) and adjusted free cash flow margin to be approximately 8% (versus prior forecast of 7.0% to 8.5%). Third Quarter Review (in thousands, except per-share data) The Company’s adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the third quarter of fiscal 2026 and fiscal 2025 exclude certain adjustments that are further described in the section entitled "Non-GAAP Financial Measures" at the end of this release. For a reconciliation of Revenue to Adjusted Net Revenue, see "Segment Information" below. Jacobs is hosting a conference call at 4:30 P.M. ET on Tuesday, August 4, 2026, which it is webcasting live at www.jacobs.com. Forward-Looking Statements Certain statements contained in this press release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning our expectations as to our trajectory and momentum and future growth, prospects, financial outlook and business strategy, including our expectations for our fiscal year 2026 adjusted EBITDA margin, adjusted EPS, adjusted net revenue growth and adjusted free cash flow margin, as well as our expectations for our effective tax rates, and any assumptions underlying any of the foregoing. Although such statements are based on management's current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include but are not limited to: general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets and stock market volatility, instability in the banking industry, labor shortages, or the impact of a possible recession or economic downturn or changes to monetary or fiscal policies or priorities in the U.S. and the countries where we do business on our results, prospects and opportunities; competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all; our ability to fully execute on our corporate strategy, including the impact of acquisitions (including the transaction to acquire the remaining stake in PA Consulting (the "PA Consulting Transaction"), strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in and effectively deploy and use the tools, technologies and capabilities needed to implement our strategy, including artificial intelligence and other emerging technologies, and to manage the operational, legal, regulatory, cybersecurity, data privacy and reputational risks associated with the use of such technologies; financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and post-retirement plans; legislative changes, including potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, as well as other legislation and executive orders, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in U.S. or foreign tax laws, including the tax legislation enacted in the U.S. in July 2025, statutes, rules, regulations or ordinances, including the impact of, and changes to, tariffs and retaliatory tariffs or trade policies, that may adversely impact our future financial position or results of operations; increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, including the Russia-Ukraine conflict and on-going, escalated and/or future tensions and conflicts in the Middle East, among others; and the impact of any pandemic, and any resulting economic downturn on our results, prospects and opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, as well as the inability of governments in certain of the countries in which we operate to effectively mitigate the financial or other impacts of any future pandemics or infectious disease outbreaks on their economies and workforces and our operations therein. The foregoing factors and potential future developments are inherently uncertain, unpredictable and, in many cases, beyond our control. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements see the Company’s filings with the U.S. Securities and Exchange Commission, including in particular the discussions contained in our fiscal 2025 Annual Report on Form 10-K under Item 1 - Business, Item 1A - Risk Factors, Item 3 - Legal Proceedings, and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations; and in our most recently filed Quarterly Report on Form 10-Q under Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law. Regulation FD We use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.jacobs.com, including information that may be deemed to be material. We encourage investors and others interested in the Company to monitor these distribution channels for material disclosures. About Jacobs At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world’s most complex challenges. With approximately $12 billion in annual revenue and a team of approximately 47,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we’re creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. Financial Highlights: Results of Operations (in thousands, except per-share data): Segment Information (in thousands): Balance Sheets (in thousands): Statements of Cash Flows (in thousands) Backlog (in millions): Non-GAAP Financial Measures and Operating Metrics: In this press release, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Adjusted net revenue is calculated by adjusting revenue from continuing operations to exclude amounts we bill to clients on projects where we are procuring subcontract labor or third-party materials and equipment on behalf of the client (referred to as "pass throughs"). These amounts are considered pass throughs because we receive no or only a minimal mark-up associated with the billed amounts. We sometimes refer to our GAAP revenue as "gross revenue." Jacobs adjusted operating profit, adjusted earnings from continuing operations before taxes, adjusted income tax expenses from continuing operations, adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted earnings attributable to noncontrolling interests from continuing operations and adjusted interest expense from continuing operations are calculated by: Excluding items collectively referred to as "Restructuring, Integration, Transaction and Other Charges," which include: Excluding items collectively referred to as "Other Adjustments", which include: We eliminate the impact of "Restructuring, Integration, Transaction and Other Charges" and "Other Adjustments" because we do not consider these to be indicative of ongoing operating performance. Actions taken by the Company to enhance efficiencies are subject to significant fluctuations from period to period. The Company's management believes the exclusion of the amounts relating to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business. Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Free cash flow (FCF) is calculated as net cash provided by operating activities from continuing operations as reported on the statement of cash flows less additions to property and equipment. Adjusted FCF is calculated as reported FCF, calculated as previously described, adjusted to exclude employee-related payments which were included as part of the initial consideration paid in connection with the PA Consulting Transaction. Adjusted FCF Margin is calculated as Adjusted FCF divided by adjusted net revenue. Adjusted EBITDA is calculated by adding income tax expense, depreciation expense and adjusted interest expense to, and deducting interest income from, adjusted net earnings attributable to Jacobs from continuing operations. I&AF Operating Margin is a ratio of I&AF operating profit for the segment to the segment's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information". Jacobs Adjusted Operating Margin is a ratio of adjusted operating profit for the Company to the Company's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information". We believe that the measures listed above are useful to management, investors and other users of our financial information in evaluating the Company’s operating results and understanding the Company’s operating trends by excluding or adding back the effects of the items described above and below, the inclusion or exclusion of which can obscure underlying trends. Additionally, management uses such measures in its own evaluation of the Company’s performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of our financial results from period to period. This press release also contains certain financial and operating metrics which management believes are useful in evaluating the Company's performance. Backlog represents revenue or gross profit, as applicable, we expect to realize for work to be completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures. Gross margin in backlog refers to the ratio of gross profit in backlog to gross revenue in backlog. For more information on how we determine our backlog, see our Backlog Information in our most recent annual report filed with the Securities and Exchange Commission. Adjusted EBITDA margin refers to a ratio of adjusted EBITDA to adjusted net revenue. Book-to-bill ratio is an operational measure equal to the ratio of period bookings, less cancellations, to revenue. It is calculated as change in backlog during the reporting period plus revenue for the period, divided by revenue for the same period. Adjusted net revenue book-to-bill is calculated using the same methodology; however, the ratio uses adjusted net revenue for the period, which excludes pass-through revenue, added to the change in adjusted net revenue bookings, less cancellations, divided by adjusted net revenue. These metrics provide visibility into performance on business pursuits with and without pass-through revenue, which can be volatile from period to period. We regularly monitor these operating metrics to evaluate our business, identify trends affecting our business, and make strategic decisions. The Company provides non-GAAP measures to supplement U.S. GAAP measures, as they provide additional insight into the Company’s financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, U.S. GAAP measures. In addition, other companies may define non-GAAP measures differently, which limits the ability of investors to compare non-GAAP measures of the Company to those used by our peer companies. The following tables reconcile non-GAAP financial measures used herein to their respective U.S. GAAP measures. For the comparable period presented below, the adjustments to derive the non-GAAP financial measures consist of amounts incurred in connection with the items described above. Amounts are shown in thousands, except for per-share data (note: earnings per share amounts may not total due to rounding). Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Attributable to Jacobs Before Taxes (in thousands) Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing Operations (in thousands) Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share Reconciliation of Earnings Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Earnings Attributable to Noncontrolling Interests from Continuing Operations (in thousands) Reconciliation of Interest Expense from Continuing Operations to Adjusted Interest Expense from Continuing Operations (in thousands): Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands): Reconciliation of Adjusted Free Cash Flow (in thousands) Earnings Per Share: View source version on businesswire.com: https://www.businesswire.com/news/home/20260804768064/en/ Contacts For additional information contact: Investors:Bert [email protected] Media:Louise [email protected] 469-724-0810

Jacobs Solutions (J) came out with quarterly earnings of $1.84 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.62 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this construction and technical services company would post earnings of $1.64 per share when it actually produced earnings of $1.75, delivering a surprise of +6.71%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Jacobs Solutions, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $4.08 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 15.07%. This compares to year-ago revenues of $3.03 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jacobs Solutions shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 11%. While Jacobs Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Jacobs Solutions was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.15 on $3.61 billion in revenues for the coming quarter and $7.23 on $14.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Owens Corning (OC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This construction materials company is expected to post quarterly earnings of $3.06 per share in its upcoming report, which represents a year-over-year change of -27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Owens Corning's revenues are expected to be $2.67 billion, down 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jacobs Solutions Inc. (J) : Free Stock Analysis Report Owens Corning Inc (OC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research