Jacobs Solutions Inc. (NYSE: J) announced its financial results for the fiscal first quarter ended December 26, 2025.
The “Double-Beat”: Q1 2026 Financial Highlights
Jacobs delivered robust growth across its core segments, driven by a surge in high-value infrastructure and advanced manufacturing projects.
Gross Revenue: $3.3 billion, a 12.3% increase year-over-year.
Adjusted Net Revenue: $2.3 billion (up 8.2% YoY).
Adjusted EPS: $1.53, beating the consensus estimate of $1.50 and marking a 15% jump from the prior year.
Record Backlog: Reached $26.3 billion, up an impressive 21% year-over-year.
Book-to-Bill Ratio: A staggering 2.0x for the quarter, indicating that for every $1 of revenue recognized, Jacobs secured $2 in new contracts.
Strategic Moves: Full Ownership of PA Consulting
A major highlight of the quarter was the announcement that Jacobs will acquire the remaining stake in PA Consulting. Management expects this transaction to “unlock the full value” of their asset lifecycle strategy by deeper integrating PA’s high-margin digital and innovation consulting with Jacobs’ global engineering scale.
Segment Performance Overview:
Infrastructure & Advanced Facilities (I&AF): Remained the primary growth engine, with standout demand in Life Sciences, Data Centers, and Semiconductors.
PA Consulting: Reported a 16% revenue increase, outperforming the broader consulting market as clients ramped up AI and digital transformation spend.
Management Commentary: “A Great Start to FY26”
The company’s executives highlighted the company’s “punching power” in the current industrial landscape.
“We are off to a great start in FY26,” said CEO Bob Pragada. “Growth was led by the sectors of the future: Life Sciences, Data Centers, and Water. Our decision to fully own PA Consulting is a pivotal step in our strategy to redefine the asset lifecycle. We are seeing cross-cutting opportunities that simply weren’t available to us two years ago.”
CFO Venk Nathamuni emphasized the company’s capital discipline: “We exceeded expectations across every key metric. This performance gave us the confidence to not only raise our full-year guidance but also reward shareholders with a 12.5% dividend increase and $252 million in share repurchases this quarter.”
Investor Outlook: Guidance Raise
Jacobs raised its full-year fiscal 2026 guidance midpoints across the board:
Adjusted EPS: Now expected in the range of $6.95 – $7.35 (up from previous estimates).
Adjusted Net Revenue Growth: Forecasted at 7% – 10%.
Free Cash Flow: Target margin increased to the 7.5% – 8.5% range.
Key Takeaways for Investors
The AI Tailwind: The focus on Data Centers and PA Consulting’s digital tools shows Jacobs is successfully pivoting toward the “AI Infrastructure” play.
Shareholder Returns: Between the dividend hike and the aggressive buyback program, Jacobs is clearly positioning itself as a “total return” stock.
Visibility: With a $26.3B backlog and a 2.0x book-to-bill, the company has roughly two years of revenue visibility, providing a defensive cushion against any potential macro volatility.