Key Takeaways Sterling sees strong growth from data center and E-Infrastructure demand, boosting backlog.Jacobs reports solid revenue growth and record backlog driven by diverse infrastructure markets.STRL shows faster earnings growth and backlog expansion, while J faces margin pressure and slowerOngoing investment across U.S. infrastructure and advanced facilities continues to support strong activity across transportation, water systems and mission-critical development such as data centers and semiconducto ...

Jacobs completes acquisition of the remaining stake in PA Consulting Accessibility StatementSkip Navigation Strengthens integrated advisory and technology-enabled solutions across complementary client base Completed the acquisition of all PA shares not previously owned for upfront consideration of approximately £1.2 billion (approximately $1.6 billion)1 Continue to expect transaction to be accretive to adjusted EPS2 in the first 12 months after close DALLAS, March 23, 2026 /PRNewswire/ -- Accelerating its g ...

Jacobs Solutions Inc. (J), headquartered in Dallas, Texas, is a leading technical professional services provider. With a market cap of $15.1 billion, the company offers engineering and construction services, as well as scientific and specialty consulting for a broad range of clients including companies, organizations, and government agencies. Companies worth $10 billion or more are generally described as “large-cap stocks,” and Jacobs Solutions perfectly fits that description, with its market cap exceedi ...

Jacobs lanza una solución de gemelos digitales para centros de datos de IA Accessibility StatementSkip Navigation Solución para mejorar la velocidad de generación de ingresos, el rendimiento energético y las operaciones y el mantenimiento de los centros de datos de IA. DALLAS, 17 de marzo de 2026 /PRNewswire/ -- Jacobs(NYSE: J) ha lanzado una solución de gemelo digital para centros de datosque permite a los desarrolladores y propietarios planificar, simular y optimizar centros de datos de inteligencia artif ...

Digital twin for a 1GW AI data center loaded at a selected site The digital twin solution, developed using the NVIDIA Omniverse DSXblueprint, combines a standardized reference design for a gigawatt-scale artificial intelligence (AI) data center with a hyper-realistic virtual environment, along with advanced simulations of compute, power and cooling systems, to serve as a real-time virtual twin of an AI data center. Jacobs releases digital twin solution for AI data centers Accessibility StatementSkip Navigat ...

Core Viewpoint - Jacobs Solutions reported strong first-quarter fiscal 2026 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [2][5]. Financial Performance - Adjusted EPS was $1.53, surpassing the Zacks Consensus Estimate of $1.52 by 0.7%, and increased from $1.33 in the same quarter last year [5]. - Gross revenues reached $3.29 billion, exceeding the consensus mark of $3.18 billion by 3.5% and growing 12.3% year over year [5]. - Adjusted net revenues were $2.25 billion, up 8.2% year over year [5]. - Adjusted operating profit grew 8.2% to $299.6 million, with an adjusted operating margin of 13.3% [6]. - Adjusted EBITDA was $302.6 million, reflecting a 7.3% year-over-year increase, with a margin of 13.4% [6]. Segment Performance - Infrastructure & Advanced Facilities segment revenues totaled $2.94 billion, a 12% increase year over year, with adjusted net revenues of $1.9 billion, up 6.9% [7]. - PA Consulting segment generated $354.4 million in revenues, up 15.5% from the previous year, with an operating profit of $84.9 million, a 27.3% increase [9]. Backlog and Demand - Fiscal first-quarter backlog increased 20.6% year over year to $26.3 billion, indicating strong project wins and future revenue stability [6]. - The book-to-bill ratio was 1.4x over the trailing 12 months, highlighting robust demand [6]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $1.55 billion, up from $1.24 billion at the end of fiscal 2025 [10]. - Net cash provided by operating activities totaled $380.8 million, significantly up from $107.5 million in the same period last year [11]. Guidance and Outlook - Jacobs raised its fiscal 2026 guidance, expecting adjusted net revenues to grow between 6.5% and 10%, and adjusted EPS to be between $6.95 and $7.30 [12]. - The company anticipates a free cash flow margin ranging from 7% to 8.5% [13]. Market Position - Jacobs Solutions has a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].

Core Services and Market Overview - The company operates in the technical advisory, engineering, and program delivery market across three main verticals: life sciences and advanced manufacturing, water and environmental, and critical infrastructure [2] - Critical infrastructure includes sectors such as transportation, energy, power, and urban development [2] Historical Context - The company's roots trace back to the engineering sector from the 1940s, indicating a long-standing presence and expertise in the industry [3]

Industry Overview - AI-powered data centers are experiencing significant growth, driven by a bullish demand scenario for managing and storing cloud computing data [1] - Global data center capital expenditure (capex) is projected to reach $1.7 trillion by 2030, with McKinsey estimating a requirement of $5.2 trillion to $6.7 trillion in capex to support AI data center development [2] Company Analysis MasTec Inc. (MTZ) - MasTec is positioned as a leading provider of infrastructure services, benefiting from the AI data center boom and the expansion of the energy industry [6][7] - The company operates in four segments: Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy, all of which are growing alongside infrastructure spending trends [8][10] - Expected revenue and earnings growth rates for MasTec are 9.2% and 29.9%, respectively, for the current year [10] EMCOR Group Inc. (EME) - EMCOR is a key player in providing critical infrastructure for AI-powered data centers, focusing on electrical, mechanical, and cooling systems [11] - The company is gaining traction in the data center construction market, which is enhancing its remaining performance obligations (RPOs) and future revenue visibility [12][13] - Expected revenue and earnings growth rates for EMCOR are 5.4% and 8.6%, respectively, for the current year [14] AECOM (ACM) - AECOM benefits from strong demand across various markets, supported by government-funded infrastructure programs and opportunities in the Middle East [15] - The company is investing in AI and technology-enabled engineering solutions, leading to significant project wins in water infrastructure and transportation [16][17] - Expected revenue and earnings growth rates for AECOM are 4.8% and 13.5%, respectively, for the current year [18] Jacobs Solutions Inc. (J) - Jacobs Solutions has a record backlog of $26.3 billion and is benefiting from rising demand for digital and advisory services [19] - The company’s performance is supported by long-term public funding and private-sector investments, allowing it to capitalize on multi-cycle growth themes [20][21] - Expected revenue and earnings growth rates for Jacobs are 9.4% and 16.5%, respectively, for the current year [21] Sterling Infrastructure Inc. (STRL) - Sterling Infrastructure specializes in constructing complex data centers and is a major provider of high-density, AI-powered data centers [22][23] - The company operates in E-Infrastructure, Building, and Transportation Solutions, focusing on advanced site development for data centers and e-commerce distribution [22][24] - Expected revenue and earnings growth rates for Sterling are 18.8% and 17.2%, respectively, for the current year [25]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Jacobs Solutions is recommended as a cutting-edge growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 0.2%, but projected EPS growth for this year is expected to be 16.5%, significantly higher than the industry average of 10.3% [4] Group 2: Financial Metrics - Jacobs Solutions has an asset utilization ratio (sales-to-total-assets ratio) of 1.09, indicating it generates $1.09 in sales for every dollar in assets, outperforming the industry average of 0.85 [6] - The company's sales are projected to grow by 9.4% this year, compared to the industry average of 3.9% [6] Group 3: Earnings Estimates - Current-year earnings estimates for Jacobs Solutions have been revised upward, with the Zacks Consensus Estimate increasing by 0.8% over the past month [8] - The combination of a Growth Score of A and a Zacks Rank of 2 positions Jacobs Solutions favorably for potential outperformance [10]

Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider Jacobs Solutions (J) and Advanced Drainage Systems (WMS) as potential undervalued stocks [1] Group 1: Company Performance - Both Jacobs Solutions and Advanced Drainage Systems currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3] - Jacobs Solutions has a forward P/E ratio of 18.87, while Advanced Drainage Systems has a higher forward P/E of 28.02 [5] - Jacobs Solutions has a PEG ratio of 1.39, which is more favorable compared to Advanced Drainage Systems' PEG ratio of 2.01 [5] Group 2: Valuation Metrics - Jacobs Solutions has a P/B ratio of 4.58, whereas Advanced Drainage Systems has a P/B ratio of 6.82, indicating that Jacobs Solutions is more favorably valued [6] - Based on various valuation metrics, Jacobs Solutions earns a Value grade of B, while Advanced Drainage Systems receives a Value grade of D, suggesting that Jacobs Solutions is the superior value option at this time [6]