--- canonical_url: https://www.stockexpertai.com/earnings/j last_updated: 2026-05-09T15:24:47.461Z --- # Jacobs Solutions Inc. (J) Q1 FY2027 Earnings Preview > This content was automatically generated with FMP live data + Q2 FY2026 earnings call transcript. Generated: 2026-05-09T15:24:47.038Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $118.43 (▼ -3.53%) | fmp:quote | | Market Cap | $14.0B | fmp:profile | | 52w range | $118.38 – $168.44 | fmp:quote | | Earnings | Tue 4 Aug | fmp:earnings-history | | EPS estimate | $1.83 (+13% YoY) | fmp:earnings-estimate | | Revenue estimate | $2.4B | fmp:earnings-estimate | | Beat streak | 6/4 | fmp:earnings-history | | Rating | B (overall 3/5) | fmp:ratings | | Analyst median target | $152 (+28.3% upside) | fmp:price-target-consensus | | MoonshotScore | 40/100 | derived | | Council | 4/6 bullish | derived | | Munger verdict | Undervalued | derived | ## Jacobs Solutions Inc. — Q1 FY2027 Expectations Q1 consensus: revenue $2.4B^{[FMP est]}, EPS $1.83^{[FMP est]}. 6 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** B · **Stance:** BUY · **Council:** 4/6 · **Moonshot:** 40 = MoonshotScore 40^{[9-pillar formula]} + Council 4/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (6 metrics) ### 1. 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, Risk Indicator · Q2 FY2026 ### 2. 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, Risk Indicator · Q2 FY2026 ### 3. 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 $7.35." > — Venkatesh Nathamuni, Investor Focus · Q2 FY2026 ### 4. Life Sciences Growth In life sciences and advanced manufacturing, net revenue grew 12% in Q2, our highest growth rate since we began reporting end markets in late 2024. > "Focusing on life sciences and advanced manufacturing, net revenue grew 12% in Q2, our highest growth rate since we began reporting end markets in late 2024." > — Venkatesh Nathamuni, Investor Focus · Q2 FY2026 ### 5. Data Center Growth Jacobs' data center business grew by more than 100% year-on-year in Q2, and they see very strong runway to build on that success in the second half of the year. > "We grew our data center business by more than 100% year-on-year in Q2, and we see very strong runway to build on that success in the second half of the year and it's more than the data center sector." > — Robert Pragada, Investor Focus · Q2 FY2026 ### 6. Fy26 Outlook Increase Jacobs increased its FY26 outlook for the second time due to a strong first half performance. > "In summary, we are exiting Q2 with significant momentum and the strong first half of the year gives us confidence to increase our FY '26 outlook for the second time in 2 quarters, which Venk will walk through shortly." > — Robert Pragada, Expectation / Guide · Q2 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 10.0 | strong | Q2 vs Q3: fast growth (+22.0%) | | Gross Margin | 2.0 | weak | Q2: low margin (21.5%, capital-intensive or commodity) | | Operating Leverage | 0.0 | weak | op margin weak (-2.2%, under pressure) | | Cash Runway | 3.0 | weak | FCF negative ($-0.5B, external financing needed) | | R&D Intensity | 3.0 | weak | low R&D investment (0.0%, weak innovation) | | Price Momentum | 4.0 | medium | RSI 36.6 weak momentum, 50d below | | News Sentiment | 6.0 | medium | majority buy (61%) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +28.3% | | Ken Griffin | bear | flow · 50d MA below | | Jim Simons | neutral | quant · RSI 37 | | Klarman | bull | value · target upside +28.3% | | Buffett | bull | quality · ROE score 4/5 | | Munger | bull | valuation · target upside +28.3% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Undervalued - **Financial Health:** Moderate - **Margin of Safety:** Strong - **Interest Coverage:** Adequate - **ROIC vs WACC:** Healthy **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 36.6 — momentum zayıf — oversold yakınında değil ama alıcı baskısı az - **50d MA:** $129 — hisse %8.3 altında — kısa vadeli direnç - **200d MA:** $141 — hisse %15.8 altında — uzun vadeli baskı - **Volume (10d):** -1% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q3 FY25 | $1.62 | $1.53 | BEAT | +1.2% | | Q4 FY25 | $1.75 | $1.68 | BEAT | -0.3% | | Q1 FY26 | $1.53 | $1.52 | BEAT | +7.8% | | Q2 FY26 | $1.75 | $1.64 | +6.7% EPS | -7.3% | 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. ## 3 Scenarios ### Scenario A · Beat **Q1 EPS > $1.83 + CapEx discipline** Threshold: EPS > $1.83^{[FMP est]}. Target: Break above median target $152^{[FMP target]}; high target $175^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $1.83 + CapEx < $20.8M** Threshold: EPS ≈ $1.83^{[FMP est]}, Q1 CapEx < $20.8M^[FMP]. Target: Consolidation in the band between current $118^[FMP] and median $152^[FMP]. ### Scenario C · Miss **EPS < $1.78 or CapEx ≥ $20.8M** Threshold: EPS < $1.78^{[FMP est×0.97]}. Target: Current $118 below SMA200 $141^[FMP], if rejection continues, $120^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q2: EPS $1.75 vs $1.64 beat^[FMP], stock -7.3% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q2 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q2 FY26 ### CapEx shock Q2 CapEx $20.8M^{[FMP cashflow]}. Q2 op margin -2.2%^{[FMP op margin]} — this level in Q1 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $152 (+28.3% upside vs current $118) - **High / Low:** $175 / $137 - **Buy / Hold / Sell:** 11 / 7 / 0 - **Analyst count:** 2 (last quarter), 28 all-time ## Additional Transcript Insights ### 1. fy26_outlook_increase **Claim:** Jacobs increased its FY26 outlook for the second time due to a strong first half performance. **Evidence (transcript):** "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." **Numbers:** 26, 2 ### 2. organic_net_revenue_growth **Claim:** Jacobs updated its FY26 organic net revenue growth range to 8% to 10.5%. **Evidence (transcript):** "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." **Numbers:** 8%, 10.5%, 14.6%, 14.9%, 7.10, 7.35, 26 ### 3. EBITDA_margin_increase **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 100, 17%, 29, 20, 29 ### 4. free_cash_flow_margin_target **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 11%, 100, 1.2, 1.3, 29 ### 5. data_center_growth **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 100%, 2 ### 6. life_sciences_growth **Claim:** 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. **Evidence (transcript):** "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." **Numbers:** 12%, 2, 2024 --- *Data source: FMP (live query, 2026-05-09), Q2 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*