Revenue growth reached 27.0% in 2026Q2, yet this top-line expansion was offset by a sharp contraction in gross margins to 21.5% and a negative operating margin of -1.9%.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Oct'21 | Oct'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 13.17B | 12.03B | 11.5B | 10.85B | 9.78B | 14.09B | 13.57B | 12.74B | 14.98B | 10.02B | 10.96B | 12.11B | 12.7B | 11.82B | 10.89B | 10.38B | 9.92B | 11.47B | 11.25B | 8.47B | 7.42B | 5.64B | 4.59B | 4.62B | 4.56B | 3.96B | 3.42B | 2.88B | 2.1B | 1.78B | 1.8B |
| Revenue Growth % | 74.1% | 4.6% | 5.99% | 10.92% | -30.58% | 3.87% | 6.51% | -14.99% | 49.51% | -8.59% | -9.5% | -4.57% | 7.42% | 8.49% | 4.93% | 4.7% | -13.53% | 1.91% | 32.78% | 14.18% | 31.7% | 22.65% | -0.46% | 1.32% | 15.13% | 15.74% | 18.92% | 36.83% | 18% | -1.02% | 4.4% |
| Cost of Goods Sold | 10.09B | 9.04B | 8.67B | 8.14B | 7.2B | 11.05B | 10.98B | 10.26B | 12.16B | 8.25B | 9.2B | 10.15B | 10.62B | 9.98B | 9.17B | 8.82B | 8.58B | 9.91B | 9.52B | 7.26B | 6.49B | 4.83B | 3.93B | 3.99B | 3.97B | 3.45B | 2.94B | 2.45B | 1.81B | 1.53B | 1.57B |
| COGS % of Revenue | - | 75.19% | 75.37% | 75.02% | 73.63% | 78.4% | 80.93% | 80.55% | 81.12% | 82.32% | 83.88% | 83.75% | 83.66% | 84.41% | 84.15% | 84.98% | 86.56% | 86.39% | 84.59% | 85.71% | 87.41% | 85.69% | 85.53% | 86.44% | 87.19% | 87.25% | 86.08% | 85.08% | 86.03% | 85.82% | 87.47% |
| Gross Profit | 3.08B | 2.98B | 2.83B | 2.71B | 2.58B | 3.04B | 2.59B | 2.48B | 2.83B | 1.77B | 1.77B | 1.97B | 2.07B | 1.84B | 1.73B | 1.56B | 1.33B | 1.56B | 1.73B | 1.21B | 934.25M | 806.3M | 664.67M | 625.89M | 583.68M | 504.67M | 475.79M | 428.9M | 293.5M | 252.5M | 225.4M |
| Gross Margin % | 23.4% | 24.81% | 24.63% | 24.98% | 26.37% | 21.6% | 19.07% | 19.45% | 18.88% | 17.68% | 16.12% | 16.25% | 16.34% | 15.59% | 15.85% | 15.02% | 13.44% | 13.61% | 15.41% | 14.29% | 12.59% | 14.31% | 14.47% | 13.56% | 12.81% | 12.75% | 13.92% | 14.92% | 13.97% | 14.18% | 12.53% |
| Gross Profit Growth % | - | 5.37% | 4.5% | 5.07% | -15.24% | 17.67% | 4.43% | -12.42% | 59.59% | 0.25% | -10.19% | -5.08% | 12.56% | 6.68% | 10.74% | 17.03% | -14.62% | -10.01% | 43.19% | 29.66% | 15.87% | 21.31% | 6.2% | 7.23% | 15.65% | 6.07% | 10.93% | 46.13% | 16.24% | 12.02% | 10.76% |
| Operating Expenses | 2.47B | 2.12B | 2.14B | 2.03B | 2.04B | 2.36B | 2.05B | 2.07B | 2.18B | 1.38B | 1.43B | 1.52B | 1.55B | 1.17B | 1.13B | 1.04B | 932.52M | 940.31M | 1.09B | 769.39M | 632.69M | 564.83M | 466.41M | 428.77M | 411.31M | 360.82M | 351.18M | 320.6M | 207M | 179M | 160.8M |
| OpEx % of Revenue | - | 17.63% | 18.61% | 18.75% | 20.85% | 16.72% | 15.12% | 16.27% | 14.55% | 13.77% | 13.04% | 12.57% | 12.18% | 9.93% | 10.38% | 10.02% | 9.4% | 8.2% | 9.7% | 9.08% | 8.53% | 10.02% | 10.15% | 9.29% | 9.03% | 9.12% | 10.27% | 11.15% | 9.85% | 10.05% | 8.94% |
| Selling, General & Admin | 2.47B | 2.12B | 2.14B | 2.03B | 2.04B | 2.36B | 2.05B | 2.07B | 2.18B | 1.38B | 1.43B | 1.52B | 1.55B | 1.17B | 1.13B | 1.04B | 932.52M | 940.31M | 1.09B | 769.39M | 632.69M | 564.83M | 466.41M | 428.77M | 411.31M | 360.82M | 311.08M | 289M | 184M | 160.2M | 143.5M |
| SG&A % of Revenue | - | 17.63% | 18.61% | 18.75% | 20.85% | 16.72% | 15.12% | 16.27% | 14.55% | 13.77% | 13.04% | 12.57% | 12.18% | 9.93% | 10.38% | 10.02% | 9.4% | 8.2% | 9.7% | 9.08% | 8.53% | 10.02% | 10.15% | 9.29% | 9.03% | 9.12% | 9.1% | 10.05% | 8.76% | 9% | 7.98% |
| Research & Development | 5.99M | 11.98M | 12.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.53M | 1.53M | 1.53M | 1.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.1% | 0.11% | - | - | - | - | - | - | - | - | 0.01% | 0.01% | 0.01% | 0.01% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | -11.98M | -12.09M | 0 | 0 | 0 | 0 | 0 | -4.52M | -6.64M | -3.05M | -3.15M | 0 | 80K | 2.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40.1M | 31.6M | 23M | 18.8M | 17.3M |
| Operating Income | 629.18M | 863.63M | 692.44M | 676.48M | 539.88M | 688.09M | 535.97M | 404.85M | 647.97M | 392.27M | 338.6M | 445.53M | 528.07M | 668.98M | 596.07M | 518.92M | 400.08M | 620.57M | 643.06M | 441.96M | 301.56M | 241.47M | 198.27M | 197.12M | 172.37M | 143.85M | 124.61M | 108.3M | 86.5M | 73.5M | 64.6M |
| Operating Margin % | 4.78% | 7.18% | 6.02% | 6.23% | 5.52% | 4.88% | 3.95% | 3.18% | 4.32% | 3.91% | 3.09% | 3.68% | 4.16% | 5.66% | 5.47% | 5% | 4.03% | 5.41% | 5.71% | 5.22% | 4.06% | 4.29% | 4.32% | 4.27% | 3.78% | 3.64% | 3.64% | 3.77% | 4.12% | 4.13% | 3.59% |
| Operating Income Growth % | - | 24.72% | 2.36% | 25.3% | -21.54% | 28.38% | 32.39% | -37.52% | 65.19% | 15.85% | -24% | -15.63% | -21.06% | 12.23% | 14.87% | 29.7% | -35.53% | -3.5% | 45.5% | 46.56% | 24.88% | 21.79% | 0.58% | 14.36% | 19.82% | 15.44% | 15.06% | 25.2% | 17.69% | 13.78% | 22.58% |
| EBITDA | 864.97M | 1.1B | 1B | 983.74M | 840.94M | 938.89M | 717.61M | 574.12M | 846.56M | 514.78M | 468.57M | 594.82M | 673.48M | 767.85M | 696.9M | 614.29M | 488.58M | 706.91M | 716.18M | 497.63M | 349.82M | 289.01M | 232.42M | 232.47M | 207.46M | 182.79M | 164.71M | 139.9M | 109.5M | 92.3M | 81.9M |
| EBITDA Margin % | 6.57% | 9.15% | 8.71% | 9.07% | 8.6% | 6.66% | 5.29% | 4.51% | 5.65% | 5.14% | 4.27% | 4.91% | 5.3% | 6.5% | 6.4% | 5.92% | 4.93% | 6.16% | 6.36% | 5.87% | 4.71% | 5.13% | 5.06% | 5.04% | 4.55% | 4.62% | 4.82% | 4.87% | 5.21% | 5.18% | 4.55% |
| EBITDA Growth % | 0.61% | 9.99% | 1.77% | 16.98% | -10.43% | 30.84% | 24.99% | -32.18% | 64.45% | 9.86% | -21.22% | -11.68% | -12.29% | 10.18% | 13.45% | 25.73% | -30.89% | -1.29% | 43.92% | 42.25% | 21.04% | 24.35% | -0.02% | 12.05% | 13.49% | 10.98% | 17.73% | 27.76% | 18.63% | 12.7% | 22.42% |
| D&A (Non-Cash Add-back) | 235.79M | 237.58M | 308.74M | 307.25M | 301.06M | 250.8M | 181.63M | 169.27M | 198.59M | 122.51M | 129.97M | 149.29M | 145.41M | 98.87M | 100.82M | 95.37M | 88.5M | 86.34M | 73.13M | 55.67M | 48.26M | 47.53M | 34.15M | 35.35M | 35.09M | 38.94M | 40.1M | 31.6M | 23M | 18.8M | 17.3M |
| EBIT | 677.77M | 689.26M | 946.34M | 689.06M | 577.68M | 768.32M | 503.41M | 434.83M | 407.74M | 255.19M | 301.98M | 449.64M | 553.6M | 674.45M | 605.02M | 525.46M | 401.81M | 627.05M | 643.06M | 441.96M | 301.56M | 214.89M | 178.55M | 197.12M | 172.37M | 143.85M | 124.61M | 108.3M | 86.5M | 73.5M | 64.6M |
| Net Interest Income | -114.16M | -109.98M | -134.6M | -143.11M | -95.89M | -69.21M | -57.48M | -74.38M | -67.78M | -3.29M | -7.41M | -12.24M | -1.74M | -7.51M | -5.64M | -3.88M | -5.08M | 10.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 33.55M | 35.8M | 34.45M | 24.98M | 4.3M | 3.5M | 4.73M | 9.49M | 8.98M | 8.75M | 7.85M | 7.26M | 9.69M | 5.39M | 6.05M | 4.92M | 4.79M | 13.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 147.72M | 145.79M | 169.06M | 168.09M | 100.19M | 72.71M | 62.21M | 83.85M | 76.76M | 12.04M | 15.26M | 19.5M | 11.44M | 12.91M | 11.69M | 8.8M | 9.87M | 2.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -119.05M | -320.16M | 84.85M | -155.51M | -62.39M | 7.51M | -94.77M | -53.89M | -56.46M | 149.07M | -51.88M | -15.39M | 14.1M | -7.43M | -2.74M | -2.26M | -8.15M | 4.2M | 14.35M | 6.69M | 3.73M | -5.42M | 19.87M | -176K | -3.62M | -5.65M | -43.29M | -3.8M | 2.3M | 4M | 2.3M |
| Pretax Income | 510.13M | 543.48M | 777.29M | 520.98M | 477.5M | 695.6M | 441.2M | 350.96M | 554.71M | 393.22M | 286.72M | 430.14M | 542.17M | 661.55M | 593.34M | 516.66M | 391.93M | 624.77M | 657.41M | 448.64M | 305.29M | 236.06M | 198.42M | 196.94M | 168.75M | 138.21M | 81.32M | 104.5M | 88.8M | 77.5M | 66.9M |
| Pretax Margin % | 3.87% | 4.52% | 6.76% | 4.8% | 4.88% | 4.94% | 3.25% | 2.76% | 3.7% | 3.92% | 2.62% | 3.55% | 4.27% | 5.6% | 5.45% | 4.98% | 3.95% | 5.45% | 5.84% | 5.29% | 4.11% | 4.19% | 4.32% | 4.27% | 3.7% | 3.49% | 2.38% | 3.63% | 4.23% | 4.35% | 3.72% |
| Income Tax | 226.03M | 215.56M | 131.49M | 101.34M | 66.33M | 274.78M | 55.32M | 36.95M | 366.56M | 105.84M | 72.21M | 101.25M | 190.05M | 221.37M | 202.38M | 181.44M | 145.65M | 224.92M | 236.67M | 161.51M | 108.4M | 85.04M | 69.45M | 68.93M | 59.06M | 50.45M | 30.34M | 39.1M | 34.4M | 30.6M | 26.5M |
| Effective Tax Rate % | 44.31% | 39.66% | 16.92% | 19.45% | 13.89% | 39.5% | 12.54% | 10.53% | 66.08% | 26.92% | 25.18% | 23.54% | 35.05% | 33.46% | 34.11% | 35.12% | 37.16% | 36% | 36% | 36% | 35.51% | 36.02% | 35% | 35% | 35% | 36.5% | 37.31% | 37.42% | 38.74% | 39.48% | 39.61% |
| Net Income | 390.06M | 290.25M | 806.09M | 665.78M | 644.04M | 477.03M | 491.85M | 847.98M | 178.43M | 293.73M | 210.46M | 302.97M | 328.11M | 423.09M | 378.95M | 331.03M | 245.97M | 399.85M | 420.74M | 287.13M | 196.88M | 151.02M | 128.97M | 128.01M | 109.69M | 87.76M | 50.98M | 65.4M | 54.4M | 46.9M | 40.4M |
| Net Margin % | 2.96% | 2.41% | 7.01% | 6.14% | 6.58% | 3.38% | 3.63% | 6.66% | 1.19% | 2.93% | 1.92% | 2.5% | 2.58% | 3.58% | 3.48% | 3.19% | 2.48% | 3.49% | 3.74% | 3.39% | 2.65% | 2.68% | 2.81% | 2.77% | 2.41% | 2.22% | 1.49% | 2.27% | 2.59% | 2.63% | 2.25% |
| Net Income Growth % | -15.18% | -63.99% | 21.08% | 3.38% | 35.01% | -3.01% | -42% | 375.24% | -39.25% | 39.56% | -30.53% | -7.66% | -22.45% | 11.65% | 14.48% | 34.58% | -38.48% | -4.96% | 46.53% | 45.84% | 30.37% | 17.09% | 0.75% | 16.7% | 24.99% | 72.14% | -22.05% | 20.22% | 15.99% | 16.09% | 25.47% |
| Net Income (Continuing) | 374.27M | 327.92M | 645.79M | 419.64M | 411.17M | 420.82M | 385.88M | 314M | 5.35M | 170.05M | 214.51M | 328.88M | 352.11M | 440.18M | 390.95M | 335.22M | 246.29M | 399.21M | 420.74M | 287.13M | 196.88M | 131.61M | 128.97M | 128.01M | 109.69M | 87.76M | 50.98M | 65.4M | 54.4M | 46.9M | 40.4M |
| Discontinued Operations | -2.45M | -23.97M | 193.29M | 286.65M | 289.88M | 10.01M | 137.98M | 557.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -8.37M | 1.02B | 838.02M | 686.84M | 676.86M | 692.52M | 39.95M | 53.97M | 90.01M | 59M | 64.91M | 64.71M | 36.41M | 35.24M | 45.31M | 10.4M | 5.88M | 5.56M | 6.18M | 51K | 7.27M | 6.55M | 5.66M | 5.3M | 5.88M | 5.1M | 5.2M | 6.2M | 6.3M | 5.5M | 0 |
| EPS (Diluted) | 3.28 | 2.38 | 6.32 | 5.30 | 4.98 | 3.12 | 2.87 | -0.64 | 1.29 | 2.42 | 1.73 | 2.40 | 2.48 | 3.23 | 2.94 | 2.60 | 1.96 | 3.21 | 3.38 | 2.35 | 1.64 | 1.12 | 1.01 | 1.00 | 0.99 | 0.81 | 0.48 | 0.62 | 0.52 | 0.45 | 0.39 |
| EPS Growth % | -10.37% | -62.34% | 19.25% | 6.43% | 59.62% | 8.71% | 548.44% | -149.61% | -46.69% | 39.88% | -27.92% | -3.23% | -23.22% | 9.86% | 13.08% | 32.65% | -38.94% | -5.03% | 43.83% | 43.29% | 46.43% | 10.89% | 1% | 1.01% | 22.22% | 68.75% | -22.58% | 19.23% | 15.56% | 15.38% | 21.88% |
| EPS (Basic) | - | 2.39 | 6.35 | 5.32 | 5.01 | 3.15 | 2.90 | -0.64 | 1.30 | 2.43 | 1.75 | 2.42 | 2.51 | 3.27 | 2.97 | 2.63 | 1.98 | 3.26 | 3.47 | 2.42 | 1.69 | 1.16 | 1.03 | 1.02 | 1.01 | 0.83 | 0.49 | 0.64 | 0.53 | 0.46 | 0.39 |
| Diluted Shares Outstanding | 119.01M | 120.08M | 125.88M | 127.21M | 129.44M | 131.27M | 132.72M | 137.91M | 138.71M | 120.15M | 121.48M | 126.11M | 132.37M | 130.94M | 128.69M | 127.23M | 125.79M | 124.53M | 124.48M | 122.18M | 120.05M | 117.51M | 114.43M | 128.01M | 110.8M | 109.02M | 105.66M | 105.91M | 104.62M | 104.22M | 103.65M |
| Basic Shares Outstanding | 118.59M | 120.08M | 125.32M | 126.61M | 128.66M | 130.19M | 131.54M | 137.91M | 137.54M | 119.37M | 120.13M | 125.01M | 130.48M | 129.29M | 127.64M | 125.69M | 124.13M | 122.77M | 121.25M | 118.65M | 116.5M | 113.95M | 112.21M | 125.5M | 108.07M | 106.38M | 104.58M | 102.99M | 102.64M | 103.08M | 103.59M |
| Dividend Payout Ratio | - | 52.72% | 17.71% | 19.29% | 18% | 23.39% | 19.9% | 10.71% | 45.89% | 18.46% | 2.78% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational margin volatility
As indicated by the most recent quarterly data, Jacobs Solutions experienced a significant 27.0% revenue surge in 2026Q2, yet this follows a period of erratic top-line performance, including a negative $1.2B revenue print in 2024Q4, largely reflecting the impact of the recent corporate spin-off activities.
The extreme variance in quarterly revenue growth suggests that the company is still in a transition phase following the separation of its government services arm. Investors should monitor whether the current growth trajectory represents a sustainable expansion in core commercial markets or merely noise from the ongoing portfolio rationalization.
According to the provided income statement data, Jacobs saw its gross margin contract to 21.5% in 2026Q2, a notable decline from the 25.0% levels maintained throughout much of 2025, suggesting that the firm is currently struggling to preserve pricing power during its recent operational pivot.
The erosion of gross margins may imply that the company is facing increased competitive pressure or higher execution costs in its high-tech industrial projects. If this trend persists, it could indicate that the firm's specialized technical expertise is not providing the expected insulation against rising labor and project delivery costs.
Based on reported financial figures, the company's operating margin plummeted to -1.9% in 2026Q2, a sharp reversal from the 7.1% margin observed in 2026Q1, highlighting a failure to scale operating expenses efficiently in the face of recent revenue fluctuations and potential integration-related overhead costs.
The inability to maintain positive operating income suggests that fixed costs are currently disproportionate to the firm's current revenue scale. This warrants further investigation into whether the recent spike in SG&A expenses is a temporary byproduct of the spin-off or a more permanent structural inefficiency that could threaten long-term profitability.
As reported in the quarterly income statements, Jacobs' net income has exhibited extreme instability, swinging from a $325.4M profit in 2024Q4 to a $40.1M loss in 2026Q2, which complicates the assessment of underlying earnings power and the impact of recurring stock-based compensation expenses.
The frequent shifts between profitability and losses suggest that non-operating items and restructuring charges are heavily distorting the bottom line. Analysts should focus on normalized earnings metrics to determine if the core business can generate consistent shareholder value once the current corporate transformation is fully reflected in the financials.
While management emphasizes a shift toward high-margin consulting, the recent income statement data shows that operating income turned negative in 2026Q2, suggesting that the firm's transition to a leaner, software-led model may be more capital-intensive and operationally difficult than the current market narrative implies.
Short-term margin compression risks are significant, particularly if the company cannot successfully pass through wage inflation to its clients. The reliance on complex project-based accounting means that any further delays in high-spec industrial projects could lead to additional earnings volatility, challenging the thesis of a stable, high-margin professional services firm.
Quick answers to the most common questions about buying J stock.
For fiscal year 2025, Jacobs Solutions Inc. (J) reported total revenue of $12.03B. This represents a 568.7% increase compared to $1.80B in 1996.
Jacobs Solutions Inc. (J) is profitable, generating $290.2M in net income for the fiscal year ending 2025 with a net profit margin of 2.4%.
Jacobs Solutions Inc. (J) reported an operating income of $863.6M, resulting in an operating profit margin of 7.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Jacobs Solutions Inc. (J) generated $2.98B in gross profit for the year, representing a gross profit margin of 24.8%. This demonstrates the company's core pricing power and production efficiency.