Jacobs Solutions (J) Q2 2026 earnings summary

Executive summary

• Q2 FY 2026 gross revenue rose 27% year-over-year to $3.7 billion, with adjusted net revenue up 8.8% to $2.3 billion and adjusted EPS up 22.4% to $1.75.

• Backlog reached a record $27 billion, up 21.7% year-over-year, with a trailing 12-month book-to-bill of 1.4x.

• Completed acquisition of PA Consulting, now a wholly owned subsidiary, delivering 17% revenue growth and enhancing digital and consulting capabilities.

• Adjusted net income was $206 million, up 17.3% year-over-year, while GAAP net loss was $(43.0) million due to PA Consulting transaction costs.

• Strong Q2 momentum led to an increased FY 2026 outlook for the second consecutive quarter.

Financial highlights

• Adjusted EBITDA was $327 million, up 14.2% year-over-year, with a margin of 14.1%.

• Adjusted net earnings from continuing operations were $205.9 million, up from $175.5 million year-over-year.

• Adjusted free cash outflow for Q2 was $272 million, with first half adjusted free cash flow at $93 million.

• Share repurchases totaled $472 million in the first half, exceeding the annual target, and quarterly dividend was raised by 12.5% to $0.36/share.

• Net leverage at 2.1x, with a plan to return below 2x by year-end and toward 1.5x in FY 2027.

Outlook and guidance

• FY 2026 adjusted net revenue growth guidance raised to 8%-10.5% year-over-year.

• Adjusted EBITDA margin guidance increased to 14.6%-14.9%; adjusted EPS range now $7.10-$7.35.

• FY 2026 outlook implies 18% year-over-year growth in adjusted EPS at the midpoint.

• FY 2029 targets reaffirmed: 6%-8% organic net revenue CAGR, adjusted EBITDA margin target raised to 17%+, and free cash flow margin to 11%+.

• Management expects continued impact from PA Consulting transaction on SG&A and tax rates for the remainder of FY 2026.