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Dec 26, 2025
Jacobs Q1 2026 Earnings Report
Jacobs reported strong fiscal first quarter 2026 results with significant growth in gross revenue, adjusted net revenue, and adjusted EPS.
Key Takeaways
Jacobs Solutions Inc. announced robust financial results for the fiscal first quarter ended December 26, 2025, with gross revenue up 12.3% year-over-year to $3.3 billion and adjusted net revenue increasing 8.2% to $2.3 billion. The company also reported a substantial 21% year-over-year backlog growth, reaching $26.3 billion, and a strong Q1 book-to-bill ratio of 2.0x. Adjusted EPS rose by 15.0% to $1.53, reflecting strong operational performance and strategic initiatives, including the acquisition of the remaining stake in PA Consulting and increased share repurchases.
Gross revenue increased by 12.3% year-over-year to $3.3 billion, demonstrating strong top-line growth.
Adjusted net revenue grew by 8.2% year-over-year to $2.3 billion, indicating healthy core business expansion.
Backlog surged by 20.6% year-over-year to $26.3 billion, supported by a robust Q1 book-to-bill ratio of 2.0x.
Adjusted EPS from continuing operations rose by 15.0% to $1.53, reflecting improved profitability and effective capital allocation strategies.
Revenue by Segment
Forward Guidance
Jacobs increased its fiscal year 2026 guidance for adjusted net revenue growth and adjusted EPS, while maintaining its forecast for adjusted EBITDA margin and free cash flow margin.
Positive Outlook
- Adjusted net revenue growth forecast increased to 6.5%-10.0% over fiscal 2025 (previously 6.0%-10.0%).
- Adjusted EPS forecast increased to $6.95-$7.30 (previously $6.90-$7.30).
- Adjusted EBITDA margin forecast maintained at 14.4%-14.7%.
- Free cash flow margin forecast maintained at 7.0%-8.5%.
- The company is confident in building on Q1 momentum and strong cash generation.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Uncertainties regarding closing conditions for the PA Consulting transaction.
- Risks related to obtaining necessary regulatory approvals for transactions.
Revenue & Expenses
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