NYSEIndustrialsEngineering & ConstructionSnapshot 2026-08-31
Reading J? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Intact: The reason to own it still holds.
Jacobs Solutions grows revenue about 10% a year, backed by strong contract wins. Profit margins stay near 14.75%. The company repurchased $472 million of shares, showing smart capital use. Free cash flow yield is steady at 3%.
Growth could slow if contract wins weaken or margins compress below 14%. Volatile management and soft guidance pose risks. Rising debt and capital allocation issues may pressure returns.
The price is about 2% below our fair value near $134, reflecting roughly 10% revenue growth. Our fair value is 15% below the Street median, so the market prices in moderate growth but not peak optimism.
Breaks if: Share repurchases fall significantly below $472 million YTD
Breaks if: Free cash flow yield falls below 2%
Breaks if: Gross margin falls below 14%
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and strategic acquisitions. The current thesis is in a watch state, reflecting a need for careful observation of sector performance and management execution.
The market currently prices J at a premium compared to peers, indicating expectations of strong performance. However, there is an expectations gap, suggesting that some investors may not fully believe in the company's growth potential.
Management has shown robust earnings quality and is on track with key priorities, including revenue guidance increases and successful acquisitions. However, recent financial performance has been neutral, and there is a moderate risk of missing future targets.
The long-term thesis hinges on the performance of sector bellwethers like PWR, FIX, and EME, which could influence J's trajectory. Additionally, management's ability to maintain credibility after recent guidance changes will be crucial.
The most important moves since the prior daily snapshot.
Signal changed from 'mixed' to 'mild_favorable'.
Yes, our read has strengthened. The company secured a significant contract for a $750 million Utah canal project. This win enhances growth in the Infrastructure & Advanced Facilities Segment. There are no new threats impacting the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 10% in FY26
Jacobs has raised its FY 2026 guidance for the second consecutive quarter, reflecting strong business momentum.
Overall, J's performance will depend on both sector dynamics and management execution over the next few years. Not investment advice.
