📊 J Key Takeaways
Is Jacobs Solutions Inc.. (J) a Good Investment?
Jacobs Solutions exhibits significant financial deterioration with net income declining 4.8% YoY and EPS collapsing 62.3% despite 4.6% revenue growth, signaling operational dysfunction. Most critically, negative operating cash flow of -$103.4M indicates the company is not converting revenue into cash, suggesting severe working capital mismanagement or project execution challenges. Combined with razor-thin margins (1.1% net), elevated leverage (1.24x D/E), and inadequate interest coverage (1.7x), the company faces material financial stress.
Jacobs Solutions shows solid revenue growth and strong free cash flow conversion, supported by healthy liquidity and manageable leverage. However, the decline in net income and the sharp drop in diluted EPS point to weaker earnings quality, while low ROE/ROA and modest interest coverage limit the fundamental upside. The business appears financially stable, but profitability needs to improve for a more favorable fundamental view.
Why Buy Jacobs Solutions Inc.. Stock? J Key Strengths
- Revenue growth of 4.6% YoY demonstrates ongoing market demand for construction services
- Gross margin of 22.3% is healthy and typical for heavy construction contractors
- Cash balance of $1.4B provides near-term liquidity buffer for operations
- Revenue grew 4.6% year over year, indicating continued demand and backlog support
- Free cash flow of $364.94M and an 11.1% FCF margin show strong cash generation relative to earnings
- Liquidity is sound with $1.55B in cash and a 1.33x current ratio, while debt/equity of 0.72x remains manageable
J Stock Risks: Jacobs Solutions Inc.. Investment Risks
- Negative operating cash flow of -$103.4M despite positive revenue indicates fundamental working capital management failure or project cost overruns
- Severe 62.3% EPS decline combined with 4.8% net income decline reveals deteriorating profitability and potential margin compression
- Extremely thin net margin of 1.1% and operating margin of 2.2% leave zero margin for adverse conditions or expense increases
- High leverage (1.24x D/E) with weak interest coverage (1.7x) creates meaningful refinancing risk if operational performance continues declining
- Poor capital efficiency with ROE of 2.4% and ROA of 0.7% indicates inefficient capital deployment
- Net income fell 4.8% year over year and diluted EPS dropped 62.3%, signaling earnings pressure or dilution-related weakness
- Profitability remains modest with a 3.8% net margin, 3.6% ROE, and 1.1% ROA
- Interest coverage of 2.7x suggests limited cushion if borrowing costs stay elevated or operating profit weakens
Key Metrics to Watch
- Operating cash flow trend - critical to confirm this is cyclical versus structural deterioration
- Operating margin expansion - must improve materially to create financial stability
- Interest coverage ratio - monitor closely given debt levels and operational stress
- Debt reduction trajectory - essential to de-lever given cash burn and operational challenges
- Operating margin and net margin trend
- Interest coverage and diluted EPS trend
Jacobs Solutions Inc.. (J) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Jacobs Solutions Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
J Profit Margin, ROE & Profitability Analysis
J vs Industrial Sector: How Jacobs Solutions Inc.. Compares
How Jacobs Solutions Inc.. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Jacobs Solutions Inc.. Stock Overvalued? J Valuation Analysis 2026
Based on fundamental analysis, Jacobs Solutions Inc.. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Jacobs Solutions Inc.. Balance Sheet: J Debt, Cash & Liquidity
J Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Jacobs Solutions Inc..'s revenue has declined by 15% over the 5-year period, indicating business contraction. The most recent EPS of $5.30 reflects profitable operations.
J Revenue Growth, EPS Growth & YoY Performance
J Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.9B | $5.6M | $-0.05 |
| Q1 2026 | $2.9B | -$18.1M | $-0.11 |
| Q3 2025 | $2.9B | $146.9M | $1.17 |
| Q2 2025 | $2.8B | $5.6M | $-0.05 |
| Q1 2025 | $2.8B | -$18.1M | $-0.11 |
| Q3 2024 | $4.2B | $146.9M | $1.17 |
| Q2 2024 | $4.1B | $162.1M | $1.28 |
| Q1 2024 | $3.8B | $135.6M | $1.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Jacobs Solutions Inc.. Dividends, Buybacks & Capital Allocation
J SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Jacobs Solutions Inc.. (CIK: 0000052988)
📋 Recent SEC Filings
❓ Frequently Asked Questions about J
What is the AI rating for J?
Jacobs Solutions Inc.. (J) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are J's key strengths?
Claude: Revenue growth of 4.6% YoY demonstrates ongoing market demand for construction services. Gross margin of 22.3% is healthy and typical for heavy construction contractors. ChatGPT: Revenue grew 4.6% year over year, indicating continued demand and backlog support. Free cash flow of $364.94M and an 11.1% FCF margin show strong cash generation relative to earnings.
What are the risks of investing in J?
Claude: Negative operating cash flow of -$103.4M despite positive revenue indicates fundamental working capital management failure or project cost overruns. Severe 62.3% EPS decline combined with 4.8% net income decline reveals deteriorating profitability and potential margin compression. ChatGPT: Net income fell 4.8% year over year and diluted EPS dropped 62.3%, signaling earnings pressure or dilution-related weakness. Profitability remains modest with a 3.8% net margin, 3.6% ROE, and 1.1% ROA.
What is J's revenue and growth?
Jacobs Solutions Inc.. reported revenue of $7.0B.
Does J pay dividends?
Jacobs Solutions Inc.. pays dividends, with $81.2M distributed to shareholders in the trailing twelve months.
Where can I find J SEC filings?
Official SEC filings for Jacobs Solutions Inc.. (CIK: 0000052988) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is J's EPS?
Jacobs Solutions Inc.. has a diluted EPS of $0.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is J a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Jacobs Solutions Inc.. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is J stock overvalued or undervalued?
Valuation metrics for J: ROE of 2.4% (sector avg: 15%), net margin of 1.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy J stock in 2026?
Our dual AI analysis gives Jacobs Solutions Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is J's free cash flow?
Jacobs Solutions Inc..'s operating cash flow is $-103.4M, with capital expenditures of $36.6M. FCF margin is -2.0%.
How does J compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 1.1% (avg: 10%), ROE 2.4% (avg: 15%), current ratio 1.43 (avg: 1.8).