Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Jacobs Solutions’ third quarter of fiscal 2026 was defined by the completion of the PA Consulting acquisition, which brought full ownership and a strong revenue performance in its Infrastructure & Advanced Facilities segment. While top-line growth was robust, the quarter was overshadowed by substantial transaction-related expenses from the acquisition, including equity vesting charges and increased SG&A, which nearly offset operational improvements. Gross margins contracted due to project mix and pass-through costs, and a spike in the effective tax rate further pressured net income. Despite these headwinds, operating cash flow improved, and the company continued its share buyback program, signaling management's confidence in long-term value creation.
Cost of Revenue
$3.27B
+43.65% YoY
EPS (Diluted)
$1.15
-25.81% YoY
Operating Income
$286.7M
+21.99% YoY
Source: SEC XBRL
Jacobs Solutions (J) reported Q3 FY2026 revenue of $3.27B, up 43.7% year over year. J's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.75 | 1.67 | Beat +5.0% |
| Dec 2025 | 1.53 | 1.55 | Miss -1.0% |
| Sep 2025 | 1.75 | 1.71 | Beat +2.1% |
| Jun 2025 | 1.62 | 1.58 | Beat +2.8% |
2 reported segments · SEC XBRL
Segment revenue totals $4.08B, which is the $4.08B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure J itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
On March 20, 2026, Jacobs acquired all remaining shares of PA Consulting for approximately €1.21 billion in cash and stock, resulting in full consolidation and eliminating redeemable noncontrolling interests.
Source: 10-Q Item 2 MD&A
Revenue growth was primarily driven by stronger performance in the Infrastructure & Advanced Facilities segment, particularly in Global Operations, International, and Americas sectors, as well as foreign currency translation benefits.
Source: 10-Q Item 2 MD&A
Selling, general and administrative expenses surged due to $217.0 million in incremental costs from PA Consulting equity vesting and $123.9 million in employee benefit trust distributions for the nine-month period.
Source: 10-Q Item 2 MD&A
The effective tax rate increased to 43.4% for the quarter due to $35.8 million of non-deductible expenses associated with the PA Consulting Transaction, expected to continue impacting the rate for the remainder of the fiscal year.
Source: 10-Q Item 2 MD&A
Gross profit margin declined from 25.0% to 19.9% because of higher pass-through costs, year-over-year project mix, and lower utilization trends primarily in PA Consulting.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
The acquisition presents execution risks in integrating operations, retaining key talent, and achieving targeted annualized cost savings of $5–10 million. Failure to capture synergies could limit the financial benefits of the deal.
Source: 10-Q Item 2 MD&A
Jacobs' business depends on government contracts; potential changes to infrastructure legislation or federal budgets, including reduced funding or shifting priorities, could disrupt project pipelines and revenue visibility.
Source: 10-Q Item 2 MD&A
Intense competition and clients’ financial constraints may lead to project delays, cancellations, or reduced demand, impacting revenue and profitability. Delayed project awards or abandonment by clients could harm results.
Source: 10-Q Item 2 MD&A
Changes to tariffs and retaliatory trade policies could affect international operations and supply chain costs, potentially eroding margins and disrupting business in key markets.
Source: 10-Q Item 2 MD&A
A recession or economic slowdown could reduce client spending on infrastructure and consulting services, pressuring Jacobs’ financial performance and increasing the risk of client payment defaults.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 3.27 $B | 2.27 $B | +43.65% |
Gross Profit $M | 810.70 $M | 758.41 $M | +6.90% |
Operating Income $M | 286.70 $M | 235.01 $M | +21.99% |
Net Income $M | 136.55 $M | 179.61 $M | -23.97% |
EPS (Basic) $ | 1.16 $ | 1.55 $ | -25.16% |
EPS (Diluted) $ | 1.15 $ | 1.55 $ | -25.81% |
SG&A Expense $M | 524.00 $M | 523.40 $M | +0.12% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
J reported Q2 FY2026 results with gross profit up 6.9% YoY to $1.56B, but operating income collapsed 63.7% to $151M as SG&A expenses surged 35.1%, while net income swung to $79.6M from a prior-year loss, and long-term debt rose 55.1% to $4.08B.
J delivered a strong Q1 FY2026 with net income surging to $125.5M (vs. a loss of $18.1M a year ago), driven by 11.6% operating income growth and a 254% jump in operating cash flow, though long-term debt rose 44.8% and stockholders' equity declined 18.1%.
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