What's Happening?
Jacobs Solutions has reported a robust start to fiscal 2026, surpassing internal expectations for the first quarter. The company announced a 15% year-over-year increase in adjusted earnings per share, reaching $1.53, supported by an 8% growth in adjusted net revenue. Gross revenue rose by 12%, and adjusted EBITDA increased by over 7% to $303 million. The company also reported a record backlog, growing 21% to over $26 billion. Key achievements include major awards in life sciences, advanced manufacturing, and critical infrastructure sectors. Jacobs has also announced plans to acquire the remaining stake in PA Consulting, enhancing its capabilities in digital consulting and AI advisory.
Why It's Important?
The strong performance and raised outlook for Jacobs Solutions
highlight the company's strategic positioning in high-growth sectors such as life sciences, advanced manufacturing, and critical infrastructure. The acquisition of PA Consulting is expected to bolster Jacobs' digital and AI capabilities, potentially leading to more predictable and high-quality earnings. The company's focus on sectors with robust demand, such as data centers and semiconductors, positions it well for continued growth. The increased dividend and share repurchases reflect confidence in the company's financial health and commitment to returning value to shareholders.
What's Next?
Jacobs Solutions plans to update its fiscal guidance following the completion of the PA Consulting acquisition, expected by the second quarter. The transaction is anticipated to be accretive to adjusted EPS within the first 12 months, with cost synergies beginning to phase in during fiscal 2026. The company aims to maintain its leverage within the target range post-acquisition. Continued growth in key sectors and successful integration of PA Consulting will be critical to sustaining the company's positive momentum.
