J · Jacobs Solutions Inc.

Jacobs delivered a materially strong Q2 FY2026, marked by accelerated top-line growth, margin expansion, and strategic execution. Gross revenue surged 27% y/y to $3.7B, driven by broad-based strength across high-demand infrastructure verticals—Data Center, Semiconductor, Water, Energy & Power, and Transportation—within its Infrastructure & Advanced Facilities (I&AF) segment, which grew revenue 28.5% y/y after adjusting for pass-throughs. PA Consulting contributed $359M in revenue, up 17% y/y, marking its fourth straight quarter of double-digit growth and validating the strategic rationale behind the completed acquisition on March 20, 2026. Adjusted EPS of $1.75 (+22.4% y/y) significantly outpaced both prior-year GAAP EPS ($0.10) and the forward consensus of $1.74 for the upcoming quarter, underscoring operational leverage despite GAAP net loss of ($0.32) due to $215M in non-recurring compensation expense tied to PA Consulting’s final vesting event and $20.5M FX loss on the acquisition hedge. Management attributed momentum to Jacobs’ central role in AI infrastructure build-out, disciplined working capital management, and early realization of synergies—now projected at $20M+ annually within 24 months, up from initial $16–20M guidance. The company raised FY2026 guidance for the second time this fiscal year, tightening and elevating all key metrics: adjusted net revenue growth now 8.0–10.5%, adjusted EBITDA margin 14.6–14.9%, and adjusted EPS $7.10–$7.35. Record $27.0B backlog (+21.7% y/y) and a 1.4x TTM book-to-bill ratio signal durable demand, while $472M in YTD share repurchases and a 12.5% dividend hike reflect confidence in cash flow generation and capital allocation discipline. These results confirm Jacobs is executing its multi-year transformation ahead of schedule, with FY2026 positioned as an inflection point toward sustained profitable growth.