Aug 4, 2026 earnings call — Record backlog, AI-driven growth focus
Adjusted EPS grew approximately 14% to $1.84, supported by more than 8% adjusted net revenue growth, all organic.
Revenue $2.4B (est $2.4B) · EPS $1.84 (est $1.83)
Key quotes
"And third, our backlog grew 27% to $29 billion, setting another new record with a trailing 12-month book-to-bill of 1.4x on gross revenue and 1.2x on net revenue."
"For context, as of Q3, the direct AI build-out represented 11% of our adjusted net revenue up approximately 100 basis points from last quarter, and our pipeline of future opportunities continues to grow meaningfully."
"As a result, our total repurchases through Q3 rose to $614 million, which combined with dividends paid, puts us on track to return more than 100% of free cash flow to our shareholders for the second consecutive year."
Analyst Q&A 8
backlog and FY '27 revenue outlook
Q (Andrew Kaplowitz · Citi): Can FY '27 net revenue grow faster given accelerating backlog and a Q4 exit rate of 14%? Also, can the data center / life sciences business grow double digits from here?
A: They deferred giving a specific FY '27 growth algorithm today, but said the current backlog makes them feel good about growth at least in line with their long-term average. They also said the data center and related advanced manufacturing business is a growth engine, share is increasing, and clients have long pipelines so it can grow double digits.
"I think we will defer specifics on the growth algorithm for fiscal '27 on the next call." — Venkatesh Nathamuni (CFO)
Water & Environmental bookings and SG&A
Q (Sangita Jain · KeyBanc): What is the scope and timing of the recent Water & Environmental bookings and how will that affect growth? Also, was the lower SG&A percent in Q3 one-time or the start of slower OpEx growth?
A: They said the wins from the quarter will start to burn in Q4 and will drive sequential growth; they remain positioned for mid- to high single-digit growth in Water & Environmental and a bright pipeline. On SG&A, they confirmed they committed to grow OpEx slower than revenue, producing operating leverage, and more of that will show in Q4.
"So Sangita, the wins that we had in the quarter will start to burn in Q4." — Robert Pragada (CEO·CHAIR)
book-to-bill sustainability and international activity
Q (Steven Fisher · UBS): Is a 1.5x (or better) book-to-bill sustainable as growth accelerates and how lumpy will it be? Also, how is international activity and the Middle East developing?
A: They said gross book-to-bill will be lumpy when large programs are booked, but net revenue book-to-bill around 1.1 to 1.3 is pretty consistent. International growth is about 9%, skewed to Australia, New Zealand and Asia; the Middle East is stable; Europe is stable mid-single digits, and the international pipeline shows continued growth.
"But the 1.1 to 1.3-ish net revenue growth, pretty consistent." — Robert Pragada (CEO·CHAIR)
Q4 guide range drivers and margin sources
Q (Jamie Cook · Truist): Why is the Q4 EPS guide range wide by about $0.10, and will margin uplift come more from I&AF or PA Consulting for 2027?
A: They said Q4 growth includes an extra week that accounts for about 6% to 7%, so normalized growth is about 8%; program ramps are improving utilization and they have good visibility. Margin expansion is driven by increased utilization and global delivery and they see margin improvement coming from both I&AF and PA Consulting as PA has high margins and cost synergies are in progress.
"So when you normalize it, we are growing at 8% for the quarter." — Venkatesh Nathamuni (CFO)
GAAP vs non-GAAP adjustments and environmental wins
Q (Andrew J. Wittmann · Baird): When will GAAP and non-GAAP converge and how long will adjustments continue? Also, were the environmental wins public or private and what should we expect going forward?
A: They said the recent GAAP/non-GAAP gap was mainly a tax item and that GAAP and non-GAAP have substantially converged, with the PA acquisition remaining the main exception; the gap should reduce substantially over time and M&A is off the table. For environmental, they said they won 2 sizable private-sector industrial long-term contracts, environmental book-to-bill was over 1.3 for the quarter, and public work (PFAS, DoD) also contributes, so they expect environmental growth to return in FY '27.
"So we had 2 sizable wins in the private sector." — Robert Pragada (CEO·CHAIR)
I&AF margin drivers and data center complexity
Q (Charles Albert Dillard · Bernstein): What drove the margin improvement in Infrastructure & Advanced Facilities — mix, pricing, technology, or global delivery — and how should we think about the opportunity into 2027? Also, are you seeing 800-volt data center designs and does that change design intensity?
A: They said operating leverage and global delivery have been the bigger drivers of recent margin expansion, with mix having more impact in FY '27 and beyond; they noted 200 basis points of margin expansion so far and more ahead. On data centers, they said newer utility and power complexities (including 800-volt components) increase scope and complexity, which fits Jacobs' capabilities and supports their performance there.
critical infrastructure trends and PA integration
Q (Michael Dudas · Vertical): How is critical infrastructure demand evolving (highways, IIJA, airports, rail) and what early benefits are you seeing from PA integration for growth and margins?
A: They said critical infrastructure is showing solid growth: Transportation is a real growth vector growing at a high single-digit rate driven by aviation, rail and ports, with highways and bridges also contributing. They added E&P is strong, Cities & Places is growing, the Middle East has a temporary pause but pipeline remains, IIJA funding continues to flow over multiple years, and PA is already generating synergies in defense, security and transportation that should drive revenue and margin benefits.
"Our Transportation business continues to be a real growth vector for us in all geographies and growing at a high single-digit rate." — Robert Pragada (CEO·CHAIR)
AI/data center pipeline and semiconductor demand
Q (Andrew Azzi · Wells Fargo): How has the AI-specific data center pipeline progressed this quarter — awards, backlog, conversion assumptions in guidance — and are customers accelerating U.S. semiconductor construction activity into FY '27?
A: They said data center backlog has grown significantly, backlog roughly doubled while the pipeline is up 3x, and visibility now extends 2 to 3 years; they are selective and focus on established customers and neo-clouds. They added AI-related work is now 11% of business (up from 10%), growth is accelerating and they're converting backlog into revenue with expected significant growth in fiscal '27; customers are pushing to accelerate semiconductor designs and the chip-related pipeline continues to grow.
"And I'd say kind of in the order of doubling over the period of time, the pipeline has gone up 3x." — Robert Pragada (CEO·CHAIR)