Jacobs Solutions Reports Strong Q1 Results, Returns to Profitability, and Raises Full-Year Guidance
Summary
Jacobs Solutions Inc. announced strong fiscal Q1 2026 results, returning to GAAP profitability, achieving significant revenue and EPS growth, and raising its full-year financial guidance.
Key Events
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Return to Profitability
The company reported GAAP net earnings of $125.0 million ($1.11 EPS) in Q1 2026, a significant turnaround from a net loss of $17.1 million ($0.10 loss per share) in Q1 2025.
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Strong Revenue and EPS Growth
Gross revenue increased 12.3% year-over-year to $3.3 billion, while adjusted net revenue grew 8.2% to $2.3 billion. Adjusted EPS rose 15.0% to $1.53.
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Raised Full-Year Guidance
Jacobs increased its fiscal 2026 outlook for adjusted net revenue growth (6.5%-10.0%), adjusted EPS ($6.95-$7.30), and free cash flow margin (7.0%-8.5%), reflecting strong confidence in future performance.
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Robust Backlog and Capital Allocation
Backlog grew 20.6% year-over-year to $26.3 billion, with a Q1 book-to-bill ratio of 2.0x. The company also repurchased $252 million of shares and increased its quarterly dividend by 12.5%.
Analysis
Jacobs Solutions Inc. delivered a robust fiscal first quarter, marked by a significant return to GAAP profitability from a net loss in the prior year. The company demonstrated strong growth across key financial metrics, including double-digit increases in gross revenue and a substantial rise in adjusted EPS. The positive momentum is further underscored by a healthy backlog and book-to-bill ratio, indicating strong future project pipeline. Critically, management raised its full-year fiscal 2026 guidance for adjusted net revenue, adjusted EPS, and free cash flow margin, signaling increased confidence in its operational performance and outlook. This comprehensive positive update, following a concurrent 10-Q filing, provides detailed financial strength and a clear upward revision to future expectations, making it highly impactful for investors.
At the time of this filing, J was trading at $129.68 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $15.7B. The 52-week trading range was $105.15 to $168.44. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.