Key insights
- Bernstein maintained an Outperform rating and $163 price target for Jacobs Engineering, citing strong performance in biotech, semiconductor, and data center construction. The firm believes AI is enhancing Jacobs' operations, not disintermediating it. Growth drivers include life sciences (10% YoY), data centers (70% YoY), and semiconductors (11% YoY). Jacobs' recent Q2 results surpassed earnings and revenue expectations, indicating positive momentum for the company and its key growth sectors.
Investing.com - Bernstein SocGen Group reiterated an Outperform rating and $163.00 price target on Jacobs Engineering Group Inc. (NYSE:J) following a biotech manufacturing construction site visit. The $14.69 billion company currently trades at a P/E ratio of 35.9 and appears undervalued according to InvestingPro analysis.
The firm visited a biotech manufacturing construction jobsite where Jacobs Engineering designed the facility and serves as construction manager. Bernstein stated that concerns about AI disintermediation are misguided and that AI is enhancing the company’s operating model.
The advanced manufacturing capital cycle is accelerating, driven by life sciences, semiconductors and data centers, which account for approximately 20% of Jacobs Engineering’s sales. Life Sciences is growing 10% year-over-year, driven by accelerating drug discovery and development, aging demographics, and reshoring.
Data centers now represent a mid-single-digit percentage of sales and are growing by 70% year-over-year as the company’s scope increases with rising project complexity. Growth is broadening beyond GLP-1s to include fill-finish and ADC manufacturing.
Semiconductors are growing by 11% year-over-year driven by high bandwidth memory, tooling, and advanced packaging. Overall, Jacobs Engineering posted revenue growth of 12.7% over the last twelve months. For deeper insights into the company’s growth trajectory and comprehensive Pro Research Reports, visit InvestingPro.
In other recent news, Jacobs Engineering Group Inc. reported strong fiscal Q2 2026 results, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $1.75, exceeding the projected $1.64, which represents a 6.71% surprise. Revenue reached $2.3 billion, slightly above the expected $2.28 billion. In personnel news, Jacobs appointed Cheryl Lim as the chief human resources officer. Lim, who will be based in Dallas, comes from Vertiv Holdings, where she served as CHRO and Section 16 Officer. These recent developments reflect ongoing changes within Jacobs Engineering. Despite the positive earnings report, the stock experienced a decline in after-hours trading.
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