BofA sees higher gold prices, likely to hit $5,000/oz in 2026
Investing.com - Jacobs Engineering Group Inc. (NYSE:J) shares fell 11% despite Bernstein SocGen Group reiterating its Outperform rating and $163.00 price target on the company. The stock closed at $129.17, representing a steep 16.35% decline over the past week, though InvestingPro data shows the company is currently trading near its Fair Value. With a P/E ratio of 32.84, Jacobs is trading at a high earnings multiple compared to industry peers.
The engineering firm reported fourth-quarter earnings that exceeded expectations, with EPS coming in 5% above estimates, though EBITDA was 2% below forecasts. For the last twelve months, Jacobs reported EBITDA of $1.27 billion and diluted EPS of $2.58. Jacobs’ backlog reached $23.1 billion, representing 6% year-over-year growth and 2% above street expectations, with a book-to-bill ratio of 1.1x.
For fiscal 2026, Jacobs provided guidance above street consensus, projecting 8% growth in net revenues to approximately $9.4 billion (1% ahead of estimates) and EBITDA margins of 14.6%, implying EBITDA of $1.37 billion (2% above expectations). The company’s EPS guidance also came in 2% above analyst forecasts. InvestingPro data shows analysts expect EPS of $6.17 for fiscal 2026, with revenue growth forecast at 5%.
According to Bernstein analyst Chad Dillard, the significant stock decline cannot be attributed to Jacobs’ financial results or outlook. Instead, the selloff appears related to recent commentary from direct competitor AECOM regarding potential AI disintermediation in the industry.
Dillard questioned whether an "AI apocalypse" was underway for the engineering sector, suggesting market concerns about artificial intelligence potentially disrupting traditional engineering business models were driving the stock movement rather than Jacobs’ actual performance.
In other recent news, Jacobs Engineering Group Inc. reported strong financial results for Q4 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.75, exceeding the forecasted $1.67, and reported revenue of $3.2 billion, which also outperformed the projected $3.15 billion. In addition to its earnings report, the company faced a downgrade from Baird, which adjusted its rating from Outperform to Neutral due to valuation concerns, while lowering the price target to $146.00 from $161.00. Baird also mentioned the possibility of a combination with WSP Global, estimating a 30% chance for a deal primarily structured with stock. Meanwhile, Wells Fargo maintained an Equal Weight rating on Jacobs Engineering but reduced its price target to $130.00 from $160.00, citing concerns over artificial intelligence impacts on the industry. These developments highlight the mixed reactions from analysts despite the company’s strong financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.