Analyst Consensus ?
ConsensusBuy37 ratings
Bullish2362.2%
Neutral1437.8%
Bearish00.0%
Jacobs Solutions Inc. · J · FY2026 Q2 · Calendar Q2 2026
Jacobs Solutions Q2 FY2026: Beat and Raise, Stock Sells Off on Leverage Concerns
Jacobs Solutions delivered a second consecutive beat-and-raise in Q2 FY2026, with adjusted EPS up 22% YoY and organic net revenue growth of 9% on a record $27B backlog. Yet the market focused on what tempered that strength: book-to-bill decelerated from 2.0x to 1.2x net, net leverage rose to 2.1x above the 1.0-1.5x target, and adjusted free cash flow was a $272M outflow tied to PA Consulting transaction accounting. The stock fell 7.3% on 4.2x normal volume and drifted another 2.4% lower in the sessions that followed. The divergence between the operational beat and the market reaction highlights investor concerns about earnings quality, the sustainability of AI-driven growth, and the credibility of the deleveraging path.
Reported After market closeNYSEIndustrials
$15.68B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$1.75
Consensus $1.63
EPS surprise
+7.4%
Reported versus consensus
Reported revenue
$2.33B
Consensus $2.28B
Revenue surprise
+2.2%
Reported versus consensus
Market reaction
event-close to next-session close
Stock move
-7.3%
Event window
SPY move
+1.4%
Same window
Abnormal move
-8.7%
Stock minus SPY
Volume
4.2×
Versus trailing sessions
Subsequent drift
-2.4%
Up to 20 sessions
JSPY benchmark
Ask FN2 about J FY2026 Q2
Transcript, numbers and history already loaded
Why did J fall 7.3% after beating EPS estimates in FY2026 Q2?What changed in J's guidance and outlook in FY2026 Q2?Give me the bull and bear case for J after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
FY2026 guidance was raised for the second consecutive quarter: net revenue growth lifted from 6.5-10% to 8-10.5% and adjusted EPS from $6.95-$7.30 to $7.10-$7.35. Backlog grew from $26.3B to a record $27B, but book-to-bill decelerated from 2.0x in Q1 to 1.4x gross and 1.2x net in Q2. The data-center business grew over 100% YoY and now represents 3-4% of revenue, while the AI infrastructure pipeline grew 400% with visibility through 2027-2028. PA Consulting reached 100% ownership, delivering 12-20% margin expansion and over $20M in identified annual cost synergies. Net leverage rose to 2.1x, above the 1.0-1.5x target range, and adjusted free cash flow was an outflow of $272M due to GAAP treatment of the PA Consulting transaction proceeds.
Guidance delta
Raised for the second consecutive quarter. Adjusted net revenue growth guidance lifted from 6.5-10% to 8-10.5%; adjusted EPS from $6.95-$7.30 to $7.10-$7.35. EBITDA margin targeted at approximately 15% in Q3 and above 16% in Q4 FY2026. Management plans to reduce net leverage below 2.0x by fiscal year-end while maintaining an aggressive share repurchase program.
Key takeaways
- Adjusted EPS of $1.75 beat the $1.63 consensus by 7.4%; revenue of $2.33B beat by 2.2%
- Organic net revenue grew 9% YoY; adjusted EPS up 22% YoY
- Backlog hit a record $27B; book-to-bill slowed to 1.2x net from 2.0x in Q1
- FY2026 guidance raised again: revenue growth 8-10.5%, adjusted EPS $7.10-$7.35
- Data center business grew over 100% YoY; AI infrastructure pipeline up 400% with visibility through 2027-2028
- PA Consulting delivering 12-20% margin expansion and $20M+ in annual cost synergies
Management priorities
- Realize $20M+ annual cost synergies from PA Consulting integration
- Reduce net leverage below 2.0x by fiscal year-end
- Achieve EBITDA margin of approximately 15% in Q3 and above 16% in Q4 FY2026
- Accelerate AI-enabled digital twin and AI-infrastructure services
- Continue aggressive share repurchase program
- Expand footprint in defense, energy, and transportation through combined PA Consulting capabilities
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$153.28Current
$137Low
$160.05Average
$175High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 29, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Citigroup | Buy | Buy | Maintain | Oct 23, 2026 |
| Keybanc | Overweight | Overweight | Maintain | Oct 15, 2026 |
| Truist Securities | Hold | Hold | Maintain | Oct 5, 2026 |
| UBS | Buy | Buy | Maintain | Aug 10, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | Aug 5, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | May 7, 2026 |
| Baird | Neutral | Neutral | Maintain | Apr 13, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Nov 21, 2025 |
| Barclays | Overweight | Overweight | Maintain | Oct 20, 2025 |
| Benchmark | Hold | Buy | Downgrade | Nov 20, 2024 |
| William Blair | Market Perform | Outperform | Downgrade | May 8, 2024 |
| Argus Research | Buy | Buy | Maintain | Mar 14, 2024 |
| Raymond James | Market Perform | Outperform | Downgrade | Nov 22, 2023 |
| Stifel | Buy | Buy | Maintain | Nov 21, 2023 |
| TD Cowen | Outperform | Outperform | Maintain | Aug 10, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Aug 9, 2023 |
| Bernstein | Outperform | Outperform | Maintain | May 10, 2023 |
| DA Davidson | Buy | Buy | Maintain | Nov 26, 2019 |
| Bank of America | Buy | Buy | Maintain | Nov 26, 2019 |
| Cowen & Co. | Outperform | Outperform | Maintain | Jan 28, 2019 |
| MKM Partners | Buy | Buy | Maintain | Nov 21, 2018 |
| Seaport Global | Buy | Buy | Maintain | Nov 15, 2018 |
| Vertical Research | Buy | Hold | Upgrade | May 9, 2018 |
| Macquarie | Neutral | Underperform | Upgrade | May 9, 2018 |
| Argus | Buy | Hold | Upgrade | May 5, 2018 |
| Deutsche Bank | Buy | Hold | Upgrade | Mar 29, 2018 |
| Goldman Sachs | Neutral | Sell | Upgrade | Jan 31, 2018 |
| Jefferies | Hold | Buy | Downgrade | Dec 13, 2016 |
| Johnson Rice | Hold | Accumulate | Downgrade | Aug 11, 2016 |
| Standpoint Research | Hold | Buy | Downgrade | Apr 14, 2016 |
| JP Morgan | Neutral | Neutral | Maintain | Jun 12, 2015 |
| Stifel Nicolaus | Buy | Buy | Maintain | Apr 29, 2015 |
| CLSA | Outperform | Buy | Maintain | Apr 13, 2015 |
| FBR Capital | Market Perform | Market Perform | Maintain | Feb 2, 2015 |
| Stephens & Co. | Overweight | Overweight | Maintain | Dec 20, 2013 |
| GARP Research | Buy | Buy | Maintain | Mar 28, 2013 |
| Gilford Securities | Buy | Buy | Maintain | Jan 10, 2013 |
Named analyst price targets
Upside is calculated against the persisted current price $153.28. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| KeyBanc | Sangita Jain | $166 | $142 | +8.3% | Oct 15, 2026 |
| Truist Financial | Analyst unavailable | $160 | $138.22 | +4.4% | Oct 5, 2026 |
| KeyBanc | Sangita Jain | $168 | $143.76 | +9.6% | Sep 8, 2026 |
| UBS | Analyst unavailable | $167 | $146.66 | +9.0% | Aug 10, 2026 |
| Goldman Sachs | Adam Bubes | $170 | $144.03 | +10.9% | Aug 6, 2026 |
| Truist Financial | Jamie Cook | $161 | $146.4 | +5.0% | Aug 5, 2026 |
| Robert W. Baird | Analyst unavailable | $153 | $142.68 | -0.2% | Aug 5, 2026 |
| RBC Capital | Analyst unavailable | $174 | $142.68 | +13.5% | Aug 5, 2026 |
| Truist Financial | Jamie Cook | $149 | $124.63 | -2.8% | Jul 2, 2026 |
| Bernstein | Chad Dillard | $163 | $124.12 | +6.3% | Jun 11, 2026 |
| RBC Capital | Sabahat Khan | $169 | $124.75 | +10.3% | May 6, 2026 |
| KeyBanc | Sangita Jain | $150 | $136.74 | -2.1% | May 6, 2026 |
| Goldman Sachs | Adam Bubes | $163 | $143.33 | +6.3% | Feb 4, 2026 |
| UBS | Steven Fisher | $175 | $137.42 | +14.2% | Feb 4, 2026 |
| RBC Capital | Analyst unavailable | $160 | $137.85 | +4.4% | Feb 4, 2026 |
| Robert W. Baird | Andrew Wittmann | $143 | $132.91 | -6.7% | Feb 4, 2026 |
| Wells Fargo | Analyst unavailable | $137 | $140.09 | -10.6% | Jan 23, 2026 |
| KeyBanc | Analyst unavailable | $154 | $137.67 | +0.5% | Jan 7, 2026 |
| Goldman Sachs | Analyst unavailable | $158 | $128.77 | +3.1% | Nov 24, 2025 |
| Truist Financial | Analyst unavailable | $152 | $129.17 | -0.8% | Nov 21, 2025 |
| RBC Capital | Analyst unavailable | $156 | $128.06 | +1.8% | Nov 21, 2025 |
| Wells Fargo | Analyst unavailable | $130 | $129.17 | -15.2% | Nov 21, 2025 |
| Robert W. Baird | Analyst unavailable | $146 | $129.17 | -4.7% | Nov 21, 2025 |
| Wells Fargo | Analyst unavailable | $160 | $153.2 | +4.4% | Nov 13, 2025 |
| Barclays | Adam Seiden | $160 | $155.39 | +4.4% | Oct 20, 2025 |
| KeyBanc | Analyst unavailable | $170 | $155.39 | +10.9% | Oct 20, 2025 |
| Truist Financial | Analyst unavailable | $163 | $155.31 | +6.3% | Oct 8, 2025 |
| Robert W. Baird | Andrew Wittmann | $161 | $148.48 | +5.0% | Aug 27, 2025 |
| Citigroup | Andrew Kaplowitz | $166 | $143.54 | +8.3% | Oct 22, 2024 |
| Raymond James | Brian Gesuale | $160 | $138.91 | +4.4% | Oct 4, 2024 |
| Stifel Nicolaus | Bert Subin | $160 | $149.71 | +4.4% | Apr 2, 2024 |
| Truist Financial | Jamie Cook | $154 | $150.64 | +0.5% | Mar 13, 2024 |
| RBC Capital | Analyst unavailable | $155 | $127.91 | +1.1% | Aug 4, 2022 |
| Citigroup | Analyst unavailable | $151 | $129.52 | -1.5% | Aug 2, 2022 |
| Credit Suisse | Analyst unavailable | $154 | $129.52 | +0.5% | Aug 2, 2022 |
| Stifel Nicolaus | Bert Subin | $158 | $124.36 | +3.1% | Jun 29, 2022 |
| Citigroup | Andrew Kaplowitz | $163 | $127.74 | +6.3% | Feb 9, 2022 |
Track every rating change on J the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationJacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company provides consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also offers consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. The company was founded in 1947 and is headquartered in Dallas, Texas.
Historical context
All J earningsIndustrials peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| APG APi Group Corporation | FY2026 Q3 · Calendar Q4 2026 | — | +6.5% | APi Group posts 23% growth, raises 2026 guidance |
| TXT Textron Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +14.2% | Textron raises outlook as Aviation and Systems deliver double-digit growth |
| CP Canadian Pacific Kansas City Ltd. | FY2026 Q3 · Calendar Q4 2026 | -3.2% | -1.9% | CPKC posts record Q3 as land bridge and freight volumes expand |
| LII Lennox International Inc. | FY2026 Q3 · Calendar Q4 2026 | -7.1% | -10.6% | Lennox grows revenue but cuts outlook as margins face pressure |
| IEX IDEX Corporation | FY2026 Q3 · Calendar Q4 2026 | +4.0% | +2.3% | IDEX raises 2026 outlook as advantage-market demand stays strong |
| CHRW C.H. Robinson Worldwide, Inc. | FY2026 Q3 · Calendar Q4 2026 | +2.9% | -11.1% | C.H. Robinson expands margins as Lean AI and RXO integration advance |
Latest beats and misses
Who reports nextBeat on EPS
- GENFY2027 Q2 · October 28, 2026+2.9% EPS+11.2% move
- KLACFY2027 Q1 · October 28, 2026+2.5% EPS+7.3% move
- SANFY2026 Q3 · October 28, 20260.0% EPS-6.3% move
- FFY2026 Q3 · October 28, 2026+19.5% EPS+1.4% move
- EQIXFY2026 Q3 · October 28, 2026+20.0% EPS+5.4% move
- EBAYFY2026 Q3 · October 28, 2026+7.1% EPS+0.2% move
Missed on EPS
- AWKFY2026 Q3 · October 28, 2026-2.0% EPS+1.1% move
- CPFY2026 Q3 · October 28, 2026-3.2% EPS-1.9% move
- LIIFY2026 Q3 · October 28, 2026-7.1% EPS-10.6% move
- EXRFY2026 Q3 · October 27, 2026-1.7% EPS+0.1% move
- NOWFY2026 Q3 · October 28, 2026-2.0% EPS-3.0% move
- CMGFY2026 Q3 · October 28, 2026-7.1% EPS+2.7% move
Get the J recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T08:51:54.789057+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T08:51:54.786330+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-31. For educational purposes only; not investment advice.