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Tetra Tech Inc. (TTEK) Stock Fundamental Analysis & AI Rating 2026

TTEK Nasdaq Services-Engineering Services DE CIK: 0000831641
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-29
Combined AI Rating
BUY
75% Confidence
N/A
BUY
75% Conf
Pending
Analysis scheduled

📊 TTEK Key Takeaways

Revenue: $2.4B
Net Margin: 8.2%
Free Cash Flow: $227.5M
Current Ratio: 1.25x
Debt/Equity: 0.47x
EPS: $0.76
AI Rating: BUY with 75% confidence
Tetra Tech Inc. (TTEK) receives a BUY rating with 75% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $2.4B, net profit margin of 8.2%, and return on equity (ROE) of 10.7%, Tetra Tech Inc. demonstrates strong fundamentals in the Services sector. Below is our complete TTEK stock analysis for 2026.

Is Tetra Tech Inc. (TTEK) a Good Investment?

Claude

TETRA TECH demonstrates solid financial health with exceptional free cash flow generation ($227.5M, 9.4% of revenue) and conservative leverage (0.47x Debt/Equity), supporting a financially stable operations model. However, modest revenue growth (4.7%) with flat net income and sharply declining EPS (-24.4%) signal margin compression and potential profitability headwinds that temper enthusiasm, warranting a measured approach.

Why Buy Tetra Tech Inc. Stock? TTEK Key Strengths

Claude
  • + Exceptional free cash flow generation with 9.4% FCF margin and strong operating cash flow of $237.6M
  • + Conservative capital structure with 0.47x Debt/Equity ratio and healthy 5.2x interest coverage providing financial flexibility
  • + Asset-light business model with minimal capex ($10.1M, 0.4% of revenue) and solid 11.2% operating margins demonstrating operational efficiency
  • + Adequate liquidity position with $223.6M cash and 1.25x current ratio supporting working capital needs

TTEK Stock Risks: Tetra Tech Inc. Investment Risks

Claude
  • ! Slowing revenue growth of 4.7% YoY coupled with flat net income (-0.1%) indicates margin compression or cost inflation pressure
  • ! Sharp EPS decline of 24.4% YoY significantly outpaces net income decline, suggesting substantial share dilution or unfavorable tax impacts
  • ! Modest 10.7% ROE and 4.6% ROA indicate suboptimal capital efficiency relative to shareholder expectations in service sector
  • ! Thin 17.9% gross margins in engineering services suggest limited pricing power and vulnerability to cost escalation

Key Metrics to Watch

Claude
  • * Organic revenue growth trajectory and contract pipeline to assess growth acceleration potential
  • * Gross and operating margin trends to monitor for stabilization or further compression
  • * Fully diluted share count and EPS trajectory to understand shareholder value creation dynamics
  • * Free cash flow sustainability and deployment strategy amid slowing profitability growth

Tetra Tech Inc. (TTEK) Financial Metrics & Key Ratios

Revenue
$2.4B
Net Income
$198.7M
EPS (Diluted)
$0.76
Free Cash Flow
$227.5M
Total Assets
$4.4B
Cash Position
$223.6M

💡 AI Analyst Insight

Tetra Tech Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

TTEK Profit Margin, ROE & Profitability Analysis

Gross Margin 17.9%
Operating Margin 11.2%
Net Margin 8.2%
ROE 10.7%
ROA 4.6%
FCF Margin 9.4%

TTEK vs Services Sector: How Tetra Tech Inc. Compares

How Tetra Tech Inc. compares to Services sector averages

Net Margin
TTEK 8.2%
vs
Sector Avg 10.0%
TTEK Sector
ROE
TTEK 10.7%
vs
Sector Avg 16.0%
TTEK Sector
Current Ratio
TTEK 1.3x
vs
Sector Avg 1.5x
TTEK Sector
Debt/Equity
TTEK 0.5x
vs
Sector Avg 0.7x
TTEK Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Tetra Tech Inc. Stock Overvalued? TTEK Valuation Analysis 2026

Based on fundamental analysis, Tetra Tech Inc. has mixed fundamental signals relative to the Services sector in 2026.

Return on Equity
10.7%
Sector avg: 16%
Net Profit Margin
8.2%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.47x
Sector avg: 0.7x

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.

Tetra Tech Inc. Balance Sheet: TTEK Debt, Cash & Liquidity

Current Ratio
1.25x
Quick Ratio
1.25x
Debt/Equity
0.47x
Debt/Assets
0.0%
Interest Coverage
5.20x
Long-term Debt
$882.8M

TTEK Revenue & Earnings Growth: 5-Year Financial Trend

TTEK 5-year financial data: Year 2021: Revenue $3.2B, Net Income $158.8M, EPS $2.84. Year 2022: Revenue $3.5B, Net Income $173.9M, EPS $3.16. Year 2023: Revenue $4.5B, Net Income $232.8M, EPS $4.26. Year 2024: Revenue $5.2B, Net Income $263.2M, EPS $0.97. Year 2025: Revenue $5.4B, Net Income $273.5M, EPS $1.02.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Tetra Tech Inc.'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.02 reflects profitable operations.

TTEK Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
9.4%
Free cash flow / Revenue

TTEK Quarterly Earnings & Performance

Quarterly financial performance data for Tetra Tech Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2026 $1.2B N/A $0.02
Q1 2026 $1.2B N/A $0.00
Q3 2025 $1.3B $85.8M $0.32
Q2 2025 $1.3B $5.4M $0.02
Q1 2025 $1.2B N/A $0.00
Q3 2024 $1.2B N/A $1.12
Q2 2024 $1.2B N/A $0.80
Q1 2024 $894.8M N/A $1.40

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Tetra Tech Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$237.6M
Cash generated from operations
Stock Buybacks
$102.0M
Shares repurchased (TTM)
Capital Expenditures
$10.1M
Investment in assets
Dividends Paid
$33.9M
Returned to shareholders

TTEK SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Tetra Tech Inc. (CIK: 0000831641)

📋 Recent SEC Filings

Date Form Document Action
May 15, 2026 4 xslF345X06/wk-form4_1778880973.xml View →
May 1, 2026 10-Q ttek-20260329.htm View →
Apr 29, 2026 8-K tm2613029d1_8k.htm View →
Apr 28, 2026 4 xslF345X06/wk-form4_1777419330.xml View →
Mar 26, 2026 8-K tm269832d1_8k.htm View →

Frequently Asked Questions about TTEK

What is the AI rating for TTEK?

Tetra Tech Inc. (TTEK) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TTEK's key strengths?

Claude: Exceptional free cash flow generation with 9.4% FCF margin and strong operating cash flow of $237.6M. Conservative capital structure with 0.47x Debt/Equity ratio and healthy 5.2x interest coverage providing financial flexibility.

What are the risks of investing in TTEK?

Claude: Slowing revenue growth of 4.7% YoY coupled with flat net income (-0.1%) indicates margin compression or cost inflation pressure. Sharp EPS decline of 24.4% YoY significantly outpaces net income decline, suggesting substantial share dilution or unfavorable tax impacts.

What is TTEK's revenue and growth?

Tetra Tech Inc. reported revenue of $2.4B.

Does TTEK pay dividends?

Tetra Tech Inc. pays dividends, with $33.9M distributed to shareholders in the trailing twelve months.

Where can I find TTEK SEC filings?

Official SEC filings for Tetra Tech Inc. (CIK: 0000831641) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TTEK's EPS?

Tetra Tech Inc. has a diluted EPS of $0.76.

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 TTEK a good stock to buy right now?

Based on our AI fundamental analysis in May 2026, Tetra Tech Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is TTEK stock overvalued or undervalued?

Valuation metrics for TTEK: ROE of 10.7% (sector avg: 16%), net margin of 8.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

Should I buy TTEK stock in 2026?

Our dual AI analysis gives Tetra Tech Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TTEK's free cash flow?

Tetra Tech Inc.'s operating cash flow is $237.6M, with capital expenditures of $10.1M. FCF margin is 9.4%.

How does TTEK compare to other Services stocks?

Vs Services sector averages: Net margin 8.2% (avg: 10%), ROE 10.7% (avg: 16%), current ratio 1.25 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-29 | Powered by Claude AI