Jacobs SolutionsJ +0.94%74 Gross Margin % is 21.51% as of Mar. 2026, which is 2% above its 10-year median of 21.00. GuruFocus rates J with a GF Score™ of 74/100 and a GF Value™ of $133.71 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,724 Construction companies, Jacobs Solutions ranks better than 55.28% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Jacobs Solutions had a gross margin of 21.51% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Jacobs Solutions Gross Margin % Related Terms
Jacobs Solutions Gross Margin % Historical Data
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The historical data trend for Jacobs Solutions's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Engineering & Construction subindustry, Jacobs Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jacobs Solutions Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Jacobs Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jacobs Solutions's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Jacobs Solutions (J) has a Gross Margin % of 21.51% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jacobs Solutions and its competitors. This is near median its historical median of 21.00. Over the past decade, Jacobs Solutions' Gross Margin % has ranged from 16.12 to 26.37. According to the industry distribution chart, Jacobs Solutions ranks #771 out of 1724 companies in the Construction industry, placing it in the top 44.7%.
Is Jacobs Solutions' Gross Margin % too high?
Jacobs Solutions' current Gross Margin % of 21.51% is near median its 10-year median of 21.00. Over the past 10 years, this metric has ranged from a low of 16.12 to a high of 26.37. The Construction industry median Gross Margin % is 20.71. Jacobs Solutions' value of 21.51% is 3.9% above this industry median. Based on the distribution chart, Jacobs Solutions ranks #771 out of 1724 companies in the Construction industry, which is above the industry midpoint. Overall, Jacobs Solutions has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Jacobs Solutions' Gross Margin % compare to IESC and DY?
According to the Construction industry distribution chart, Jacobs Solutions ranks #771 out of 1724 companies for Gross Margin %. This puts Jacobs Solutions in the upper half of its industry. The industry median Gross Margin % is 20.71. Jacobs Solutions' value of 21.51% is 3.9% above this benchmark. Historically, Jacobs Solutions' own Gross Margin % has ranged from 16.12 to 26.37 over the past decade. While the company's 10-year median is 21.00 vs. the industry median of 20.71, Jacobs Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,724 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jacobs Solutions's current Gross Margin % of 21.51% is 3.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Jacobs Solutions and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jacobs Solutions's current Gross Margin % is 21.51%, which is near median its own 10-year median of 21.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jacobs Solutions stock overvalued right now?
Based on GuruFocus' analysis, Jacobs Solutions (J) is currently considered Fairly Valued. The stock's GF Value™ is $133.71, compared to a current price of $122.04 — trading 8.7% below its estimated fair value. The current Gross Margin % is 21.51%, which is near median its 10-year median of 21.00 and 3.9% above the Construction industry median of 20.71. Jacobs Solutions' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Jacobs Solutions (J), the current Gross Margin % is 21.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jacobs Solutions (J) Overvalued in 2026?
Based on GuruFocus' analysis, Jacobs Solutions stock appears to be undervalued.
The current stock price of $122.04 is trading 8.7% below its estimated GF Value™ of $133.71.
GuruFocus considers Jacobs Solutions to be Fairly Valued.
Key valuation signals for J:
Gross Margin %: 21.51% (near median its 10-year median of 21.00)
GF Value™: $133.71 vs. price of $122.04 (8.7% below fair value)
Industry Position: 3.9% above the Construction median (#771 of 1724)
No single metric tells the full story. See the J stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jacobs Solutions is a global provider of engineering, design, procurement, construction, and maintenance services as well as cyber engineering and security solutions. The firm serves industrial, commercial, and government clients in a wide variety of sectors, including water, transportation, healthcare, technology, and chemicals. Jacobs Solutions employs approximately 60,000 workers. The company generated $12 billion in revenue in fiscal 2025.
74GF Score
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