2 analysts' median target is $152[FMP target], stock is $118, +28.3% upside potential. After Q2 +6.7% EPS beat[FMP earnings], the stock moved -7.3%.
B = MoonshotScore 40[9-pillar formula] + Council 4/6[6-lens rule]. Form 4: 0 transactions[FMP Form 4].
Q1 consensus: revenue $2.4B[FMP est], EPS $1.83[FMP est]. 6 consecutive quarters of beat[FMP earnings].
Q2 EPS +6.7% beat[FMP] but the stock -7.3% D+1[FMP D+1]. Venkatesh Nathamuni promised $20.8M CapEx + a sequential decline in Q1 during the Q2 earnings call[Venkatesh Nathamuni capex transcript].
Watchlist
EBITDA Margin Increase
EBITDA_margin_increase
Jacobs increased its adjusted EBITDA margin target to 17% plus for FY29 due to the implementation of gross margin and G&A initiatives as well as the acquisition of the remaining stake in PA Consulting.
"As it pertains to adjusted EBITDA margin, we are increasing our target by 100 basis points to 17% plus for fiscal year '29. This is due to the implementation of gross margin and G&A initiatives that are well underway as well as the acquisition of the remaining stake in PA Consulting, where we currently see opportunity for at least $20 million in annual cost synergies."
- Venkatesh Nathamuni - Q2 FY26 Earnings Call - May 5, 2026
Free Cash Flow Margin Target
free_cash_flow_margin_target
Jacobs now believes it can reach or exceed an 11% free cash flow margin, thanks to its high margin expectation and working capital management, implying $1.2 billion to $1.3 billion for annual free cash generation by FY29.
"And lastly, our high margin expectation and working capital management give us confidence we can now reach or exceed an 11% free cash flow margin, also up 100 basis points from our prior target. At our forecasted growth rate that implies $1.2 billion to $1.3 billion for annual free cash generation by fiscal year '29."
- Venkatesh Nathamuni - Q2 FY26 Earnings Call - May 5, 2026
Organic Net Revenue Growth
organic_net_revenue_growth
Jacobs updated its FY26 organic net revenue growth range to 8% to 10.5%.
"We're increasing our FY '26 organic net revenue growth range, 8% to 10.5% year-over-year, adjusted EBITDA margin rate to 14.6% to 14.9% and an adjusted EPS range to $7.10 to $7.35."
- Venkatesh Nathamuni - Q2 FY26 Earnings Call - May 5, 2026
Life Sciences Growth
life_sciences_growth
In life sciences and advanced manufacturing, net revenue grew 12% in Q2, our highest growth rate since we began reporting end markets in late 2024.
"Focusing on life sciences and advanced manufacturing, net revenue grew 12% in Q2, our highest growth rate since we began reporting end markets in late 2024."
- Venkatesh Nathamuni - Q2 FY26 Earnings Call - May 5, 2026
Data Center Growth
data_center_growth
Jacobs' data center business grew by more than 100% year-on-year in Q2, and they see very strong runway to build on that success in the second half of the year.
"We grew our data center business by more than 100% year-on-year in Q2, and we see very strong runway to build on that success in the second half of the year and it's more than the data center sector."
- Robert Pragada - Q2 FY26 Earnings Call - May 5, 2026
Fy26 Outlook Increase
fy26_outlook_increase
Jacobs increased its FY26 outlook for the second time due to a strong first half performance.
"In summary, we are exiting Q2 with significant momentum and the strong first half of the year gives us confidence to increase our FY '26 outlook for the second time in 2 quarters, which Venk will walk through shortly."
- Robert Pragada - Q2 FY26 Earnings Call - May 5, 2026
Stock Expert AI - Methodology
9-pillar methodology. Revenue Growth strong. Gross Margin weak.
How is it calculated? ->6 investor frameworks. 4 bullish (Ray Dalio, Klarman, Buffett, Munger), 1 bearish (Ken Griffin), 1 neutral (Jim Simons).
How is it calculated? ->Quality business, discounted price.
How is it calculated? ->Past Performance
Q2 (May 5, 2026): EPS $1.75 vs $1.64 est[FMP], +6.7% beat. D+1 movement: -7.3%[FMP D+1]. Decline despite beat - market reacted to guidance, not numbers.
Q2: EPS $1.75 vs $1.64 beat[FMP], stock -7.3% D+1[FMP].
No RPO/backlog concentration disclosed in Q2 earnings call.
Q2 CapEx $20.8M[FMP cashflow]. Q2 op margin -2.2%[FMP op margin] - this level in Q1 is sensitive to CapEx revision risk.
Not advice - a structural framework for earnings night. Decision discipline is yours.
Market Outlook
You read it in 5 minutes. When the numbers come out on Tuesday evening - you know what you're looking at.
Data arrives at night. The framework is ready now.
Data arrives on Tuesday evening. The framework is ready on this page: Q1 EPS threshold $1.83[FMP], CapEx threshold "below $20.8M"[Venkatesh Nathamuni]. Two anchors, three scenarios.
Comparison Stock Expert AI Pro $24/month ($240/year), 77% cheaper than the total of three earnings-tracking tools ($1,059/year -> $240/year).
Seeking Alpha $299/yr - analyst opinions + earnings coverage TipRanks $360/yr - Smart Score (1-10) + analyst consensus + insider trades Trendspider $400/yr - AI pattern detection + automated TA + multi-timeframe alerts
Prices as of April 2026. Sources: seekingalpha.com/subscriptions - tipranks.com/pricing - trendspider.com/pricing
Stock Expert AI Pro: $24/month ($240/year). Council 7-lens analysis + MoonshotScore 9-pillar + Insider tracker + Technical levels - all in one platform, for every stock.
Educational tool, not investment advice. Past performance does not guarantee future results.
Calendar
DATA GAP: Events not in the FMP /stable/calendar feed - Investor day, analyst day, product launches, regulatory dates. These require company IR page scraping or manual calendar entry.
This J (J) earnings preview covers the analyst consensus, key catalysts, and what to watch on the earnings call.
Consensus EPS, revenue guidance, segment growth rates, and the tone of management commentary — the full breakdown with sources is on this page.