Jacobs Solutions (J) Beats Q4 2025 Estimates, Targets 16% EPS Growth for 2026 on Record Backlog

Jacobs Solutions Inc. (NYSE: J) kicked off Thursday’s trading session with a flurry of news: stronger‑than‑expected fiscal fourth‑quarter 2025 results, a bullish 2026 earnings outlook, fresh SEC filings, and continued shareholder returns via dividends and buybacks.

The engineering and professional services company reported solid top‑line growth, expanding margins on an adjusted basis and a record backlog, even as GAAP profit declined year over year due mainly to prior‑period investment gains. ^[1]

Q4 2025: Revenue Grows 6.6%, Adjusted EPS Jumps 28%

Jacobs’ fiscal fourth quarter ended September 26, 2025, and the company’s headline numbers came in ahead of Wall Street expectations: ^[2]

Revenue: about $3.15–3.2 billion, up 6.6% year over year
Adjusted net revenue:$2.2 billion, up 5.8%
GAAP net income (total): roughly $122 million, or $0.92 per share, down sharply from about $325 million or $2.51 per share a year earlier
Net earnings from continuing operations: about $138 million, or $1.05 per diluted share
Adjusted EPS from continuing operations:$1.75, up 27–28% from $1.37 in the prior‑year quarter
Backlog:$23.1 billion, up 5.6% year over year, with a book‑to‑bill ratio of 1.1x for both the quarter and trailing twelve months

Analysts had been looking for EPS of about $1.67 on roughly $3.14–3.15 billion of revenue, so Jacobs delivered a modest beat on both revenue and earnings. ^[3]

The sharp decline in GAAP profit primarily reflects a tough comparison with last year, when Jacobs recognized mark‑to‑market gains tied to its former stake in Amentum. On an underlying basis, profitability improved, with adjusted EBITDA rising about 12% year over year to $324 million. ^[4]

Full‑Year 2025: Adjusted EPS Up Nearly 16% Despite GAAP Headwinds

For the full fiscal year 2025, Jacobs reported: ^[5]

Revenue: about $12.0 billion, up 4.6%
Adjusted net revenue:$8.7 billion, up 5.3%
GAAP net earnings from continuing operations: about $313 million, down roughly 49% from fiscal 2024
GAAP EPS from continuing operations:$2.58, versus $4.79 last year
Adjusted EPS from continuing operations:$6.12, up about 15.9% from $5.28
Cash conversion / reported free cash flow conversion: above 100%

The contrast between GAAP and adjusted results is largely tied to non‑cash mark‑to‑market effects and other one‑off items. Operationally, Jacobs expanded margins and ended the year with strong cash generation, giving management confidence to keep returning capital to shareholders. ^[6]

Record Backlog and Segment Momentum

A central theme in today’s news is backlog quality and durability. With $23.1 billion of contracted work on the books and a book‑to‑bill ratio above 1.0x, Jacobs is still locking in more work than it delivers, despite a choppy macro backdrop. ^[7]

In the earnings release, Chair and CEO Bob Pragada highlighted several markets that drove growth in the Infrastructure & Advanced Facilities (I&AF) segment, including: ^[8]

Life sciences
Data centers
Water
Energy & power
Transportation

These sectors helped support mid‑single‑digit organic revenue growth and “meaningful” operating margin expansion in fiscal 2025. PA Consulting — the UK‑based consulting firm in which Jacobs owns a majority stake — also saw revenue growth accelerate and contributed positively to consolidated results. ^[9]

Beyond core infrastructure, Jacobs is leaning into higher‑value technology work. Just yesterday, the company announced it had been selected as Owner’s Representative for PsiQuantum’s new quantum computing facility at the Illinois Quantum and Microelectronics Park in the Chicago area — a project that underscores Jacobs’ role in advanced manufacturing and emerging technologies. ^[10]

Earlier this week, Jacobs also disclosed it will lead program and construction management for phase one of a $1.6 billion modernization of Cleveland Hopkins International Airport, Ohio’s busiest airport, adding further multi‑year visibility to its transportation pipeline. ^[11]

2026 Outlook: Double‑Digit EPS Growth Target

Perhaps the most market‑moving detail today is management’s fiscal 2026 guidance, which calls for healthy growth on both revenue and earnings: ^[12]

Adjusted net revenue: expected to grow 6%–10% over fiscal 2025
Adjusted EBITDA margin: projected in the 14.4%–14.7% range
Adjusted EPS:$6.90 to $7.30, implying roughly 16% growth at the midpoint versus the FY 2025 adjusted EPS of $6.12
Free cash flow margin: targeted at 7%–8%

That guidance is slightly ahead of consensus estimates and above the company’s prior strategic target of 50–80 bps annual margin expansion outlined at its February Investor Day. CFO Venk Nathamuni noted that Jacobs exited the first year of its current strategy cycle above the high end of that margin goal and expects “further margin improvement in FY26” alongside growth in EPS and free cash flow. ^[13]

Dividend, Buybacks and Capital Allocation

Even before earnings, Jacobs’ Board signaled continued confidence in cash generation by declaring a quarterly dividend of $0.32 per share on November 18: ^[14]

Dividend amount: $0.32 per share
Payment date:December 19, 2025
Record date / ex‑dividend date:December 2, 2025
Annualized payout:$1.28 per share, implying a yield of roughly 0.8% at recent prices
Payout ratio: around the high‑teens to low‑30s percent range depending on the earnings measure used, leaving ample room for reinvestment

According to the company and third‑party data, Jacobs has increased its dividend for multiple consecutive years and maintains a conservative payout level relative to expected earnings. ^[15]

On top of the dividend, Jacobs returned a record $1.1 billion to shareholders in fiscal 2025 through share repurchases and dividends, and management indicated plans to keep returning capital given the firm’s balance sheet strength and cash‑flow outlook. ^[16]

Fresh 10‑K Filing Adds Detail on Strategy and Risks

Today’s news flow also includes the publication of Jacobs’ annual Form 10‑K, which offers a deeper dive into its financial performance and risk factors. A TradingView summary of the filing highlights: ^[17]

Revenues of about $12.03 billion, up 4.6% year over year
Improved gross profit and margins, supported by project mix
Continued emphasis on sustainable growth, operational efficiency and strategic investments

The 10‑K reiterates that Jacobs faces macro and policy‑driven uncertainties — from inflation and interest rates to geopolitical tensions and potential changes in government spending priorities — many of which management also flags in today’s forward‑looking statements. ^[18]

Institutional Ownership and Analyst Sentiment

Institutional investors appear to be leaning in. A MarketBeat report published today shows that Primecap Management Co. CA recently added 96,387 shares in the second quarter, lifting its stake to about 4.75 million shares, or roughly 3.97% of Jacobs’ outstanding stock — a position valued at more than $620 million at the time of filing. ^[19]

On the analyst side: ^[20]

The consensus rating sits at “Moderate Buy”, with an average price target around $161–162 per share.
Several banks have raised targets in recent weeks, citing Jacobs’ strong positioning in multi‑year infrastructure, water, environmental and advanced manufacturing projects.
Zacks currently rates the stock a Rank #3 (Hold), noting the company’s consistent record of beating EPS estimates but highlighting broader industry cyclicality.

Pre‑earnings, a Benzinga round‑up of “top Wall Street forecasters” noted that analysts were expecting Q4 EPS of $1.68 and revenue of about $3.14 billion, both of which Jacobs ultimately exceeded. ^[21]

How the Stock Is Trading Today

At last check this afternoon, Jacobs Solutions (NYSE: J) was trading around $147–148 per share, modestly higher on the day after initially spiking on the earnings headlines.

Shares remain below their 52‑week high near the mid‑$160s but well above the low around $106, leaving the stock roughly in the middle of its one‑year range as investors digest guidance, macro risks and the strength of the project pipeline. ^[22]

What Today’s News Means for Investors

Putting today’s announcements together, several themes stand out:

Execution remains solid. Jacobs has now beaten consensus EPS and revenue estimates again, while expanding adjusted margins and growing revenue mid‑single digits. ^[23]
Backlog depth supports visibility. A record $23.1 billion backlog and 1.1x book‑to‑bill ratio suggest healthy demand, particularly across infrastructure, water, life sciences and data center markets. ^[24]
Guidance is constructive. Management’s call for 16% adjusted EPS growth at the midpoint in FY26, alongside 6–10% adjusted net revenue growth and expanding margins, signals confidence that Jacobs can navigate macro and political volatility. ^[25]
Capital returns are growing but disciplined. With a relatively modest dividend, strong free‑cash‑flow conversion and ongoing buybacks, Jacobs appears focused on balancing shareholder distributions with reinvestment in growth. ^[26]
Risks remain. Investors still need to weigh long‑duration project risk, potential shifts in infrastructure and defense spending, and ongoing legal and regulatory matters disclosed in Jacobs’ 10‑K and prior filings. ^[27]

Bottom Line

For November 20, 2025, the story around Jacobs Solutions is clear:

Q4 and full‑year 2025 results beat expectations on an adjusted basis.
Backlog and guidance point to continued growth in 2026.
Dividend payouts, buybacks, and institutional interest provide an additional vote of confidence.

As always, this article is for informational purposes only and is not investment advice. Anyone considering J shares should review the full earnings release, 10‑K, and conference‑call commentary, and weigh those against their own risk tolerance and portfolio objectives.

Jacobs (J|$18.0B) - 2025 Q4 & Full Year Earnings Analysis