Jacobs to Report Q1 Earnings: What to Expect From the Stock?

Jacobs Solutions, Inc. J is slated to report first-quarter fiscal 2026 results on Feb. 3, after market close.    

In the last reported quarter, the company’s adjusted earnings and revenues topped the Zacks Consensus Estimate by 4.8% and 0.6%, respectively. Meanwhile, on a year-over-year basis, both metrics increased 27.7% and 6.6%.

The leading provider of professional, technical and construction services’ earnings have topped the consensus mark in each of the last four quarters, the average surprise being 3.3%.

How Are Estimates Placed for Jacobs Stock?

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.52 over the past 60 days. The estimated figure indicates a 14.3% year-over-year increase from $1.33.

Jacobs Solutions Inc. Price and EPS Surprise

Jacobs Solutions Inc. price-eps-surprise | Jacobs Solutions Inc. Quote

The consensus mark for revenues is pegged at $3.18 billion, indicating an increase of 8.5% from the year-ago figure of $2.93 billion.

Factors to Note Ahead of Jacobs' Q1 Results

Jacobs’ fiscal first-quarter performance is likely to reflect steady year-over-year growth, supported by healthy demand across water, life sciences, data centers, transportation and energy-related infrastructure. A record backlog exiting fiscal 2025 and improving pipeline conversion are expected to have provided visibility, though the fiscal first quarter was typically seasonally slower due to holiday timing. 

For the to-be-reported quarter, the company expects 5.5% to 7.5% net revenue growth and a low to mid-15% margin, indicating normal seasonal patterns in the fiscal first quarter. 

Segment-wise, the Infrastructure & Advanced Facilities segment (accounting for 89.5% of fiscal 2025 total revenues) is expected to have been supported by continued strength in Water & Environmental, Life Sciences, Advanced Manufacturing and Critical Infrastructure. Water remains one of the most resilient areas, with strong global pipelines driven by infrastructure modernization, resilience needs and regulatory requirements. Environmental services might have remained softer early in the year, reflecting cautious spending by some public and private clients, though management expects conditions to gradually improve.

Life Sciences & Advanced Manufacturing is likely to have benefited from sustained demand in life sciences and accelerating data-center activity. Semiconductor programs have been also beginning to ramp after a period of slower comparisons, positioning this submarket for improving momentum as fiscal 2026 progresses. Expanding use of digital tools, including digital twins and AI-enabled platforms, supports more complex project scopes and higher-value engagements.

Critical Infrastructure demand is expected to have remained broad-based, led by transportation programs, energy and power projects and urban infrastructure initiatives. Ongoing transportation modernization in the United States and internationally, along with energy-transition and power-related investments, continues to support revenue visibility for the quarter.

PA Consulting segment (accounting for 10.5% of fiscal 2025 total revenues) is expected to have contributed steadily in the fiscal first quarter. Demand remains supported by public-sector, national security and private-sector advisory work, with momentum in the United Kingdom and Europe helping keep growth broadly in line with the overall company trajectory.

The Zacks Consensus Estimate for fiscal first-quarter revenues in the Infrastructure & Advanced Facilities segment is pegged at $2.83 billion, up from $2.63 billion reported in the prior-year quarter. Revenues for PA Consulting are estimated at $335 million, up from $307 million reported in the prior-year quarter.

Jacobs’ bottom line is also likely to have increased year over year, supported by a more favorable mix, increased use of global delivery centers and evolving commercial models that enhance profitability. These factors are expected to have supported margin performance as operational efficiencies continue to scale.

What the Zacks Model Says for Jacobs

Our proven model does not conclusively predict an earnings beat for Jacobs this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.

Earnings ESP of Jacobs: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

J’s Zacks Rank: Jacobs currently carries a Zacks Rank #4 (Sell).

Stocks With Favorable Combination

Here are some companies in the Zacks Business Services sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

The Western Union Company WU has an Earnings ESP of +1.51% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Western Union reported better-than-expected earnings in two of the last four quarters and missed on the other two occasions, the average surprise being 0.6%. The company is expected to register a 7.5% increase in earnings for the to-be-reported quarter.

Visa Inc. V currently has an Earnings ESP of +0.41% and a Zacks Rank of 3.

The company is expected to register an 11.2% increase in earnings for the to-be-reported quarter. Visa reported better-than-expected earnings in each of the last four quarters, the average surprise being 2.1%.

Mastercard Incorporated MA presently has an Earnings ESP of +1.01% and a Zacks Rank of 3.

The company is expected to register a 15.3% increase in earnings for the to-be-reported quarter. Mastercard reported better-than-expected earnings in each of the last four quarters, the average surprise being 5.5%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research