Revenue and Cost Pressure
Cost of Revenue surged 23.8% YoY to $5.43B, significantly outpacing gross profit growth of 6.9% to $1.56B, compressing the gross margin and signaling rising input or operational costs relative to revenue generation.
JACOBS SOLUTIONS INC. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
Cost of Revenue surged 23.8% YoY to $5.43B, significantly outpacing gross profit growth of 6.9% to $1.56B, compressing the gross margin and signaling rising input or operational costs relative to revenue generation.
SG&A expenses jumped 35.1% YoY to $1.41B, which was the primary driver behind operating income declining 63.7% to $151.4M, suggesting significant investment in selling, general, and administrative functions that has not yet translated to proportional revenue growth.
Net income turned positive at $79.6M compared to a loss of $12.5M in the prior-year period, a 736.1% improvement, likely driven by below-the-line items such as tax benefits or non-operating gains rather than core operating performance.
Cost of Revenue
$5.43B
++23.82% YoY
EPS (Basic)
$0.79
++1680.00% YoY
Operating Income
$151.38M
-63.70% YoY
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