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Jacobs Solutions Inc. Financial Highlights for Q1 2026

Jacobs Solutions Inc. (NYSE: J) has announced its financial performance for the first quarter of fiscal year 2026, ending on December 26, 2025. In a significant display of growth, the company reported a gross revenue of $3.3 billion, representing a year-over-year increase of 12.3%. Adjusted net revenue reached $2.3 billion, reflecting an 8.2% growth compared to the same quarter in the previous year. This strong start has led Jacobs to improve its financial outlook for the full fiscal year.

Key Financial Metrics

• - Gross Revenue: $3.3 billion (up 12.3% YoY)
• - Adjusted Net Revenue: $2.3 billion (up 8.2% YoY)
• - GAAP Net Earnings: $125.0 million (compared to a net loss of $17.1 million in Q1 2025)
• - Adjusted EBITDA: $302.6 million (increased 7.3% YoY)
• - GAAP EPS: $1.11 (compared to a loss of $0.10 in Q1 2025)
• - Adjusted EPS: $1.53 (up 15.0% YoY)
• - Backlog: $26.3 billion (up 20.6% YoY) with a book-to-bill ratio of 2.0x.

Jacobs Solutions’ Chair and CEO, Bob Pragada, commented on the results, emphasizing the company’s strong revenue performance across both Infrastructure & Advanced Facilities (IAF) and PA Consulting sectors. The growth in IAF was driven by significant revenue increases in the life sciences, data center, semiconductor, water, and transportation sectors. Additionally, PA Consulting has continued to exhibit strong demand for its digital services, boasting a year-on-year revenue increase of 16% in the first quarter.

Strategic Developments

Another noteworthy aspect of Jacobs’ report is the strategic move to acquire the remaining stake in PA Consulting. This transaction aims to enhance the value derived from Jacobs' asset lifecycle strategy and is expected to solidify the company’s position in the consulting market. Furthermore, Jacobs repurchased $252 million of its own shares during the quarter and announced a 12.5% increase in its quarterly dividend, showcasing confidence in its operational performance and long-term strategies.

CFO Venk Nathamuni expressed satisfaction with the Q1 results, highlighting that the company surpassed expectations in key financial metrics, including revenue, margins, earnings per share, and operational cash flow. Jacobs is optimistic about sustaining this positive momentum and has adjusted its FY 2026 guidance upwards, now projecting a growth in adjusted net revenue between 6.5% to 10% over fiscal year 2025.

Future Outlook

Looking ahead, Jacobs forecasts its adjusted EBITDA margin to remain stable between 14.4% and 14.7%. The adjusted EPS is expected to be within the range of $6.95 to $7.30, reflecting a slight increase from prior estimates. Additionally, the free cash flow margin is projected to fall between 7.0% and 8.5%.

Overall, Jacobs Solutions has embarked on a promising trajectory for fiscal year 2026 with strong financial results in Q1, indicating robust operational growth and strategic advancements. For further details and updates, Jacobs is hosting a conference call to discuss these results and future strategies.

Conclusion

The sprightly performance in the first quarter underscores Jacobs Solutions Inc.’s capability to navigate a competitive market landscape successfully. With its strategic acquisitions and robust financial health, Jacobs is poised for a strong fiscal 2026, aiming to deliver innovative solutions to complex global challenges while generating value for its shareholders.