Jacobs: Increased Scope Of AI Work And Margin Improvement Should Help Deliver Good Upside

Jacobs Solutions is rated Buy, leveraging expanding AI data center demand and broader project scope for sustainable growth. J's backlog reached $28.9B, up 27.3% YoY, with improving project economics and visibility into 2028, supporting robust forward earnings. Adjusted EBITDA margins are expanding, driven by better utilization, global delivery, and a shift toward higher-margin fixed-price projects.