Jacobs Engineering Group is capitalizing on the surging demand for artificial intelligence (AI) infrastructure, which continues to drive robust growth for the company. During the firm’s earnings call for its fiscal second quarter 2026, CEO Bob Pragada emphasized the ongoing expansion of Jacobs' data center business and its position within the broader AI infrastructure ecosystem.
"We see very strong runway to build on that success in the second half of the year", said Pragada. "The investment cycle is still in the early stages."
The company’s data center segment has seen remarkable growth, with revenue more than doubling year over year in the second quarter, according to Pragada. He attributed this significant increase to investments made by hyperscalers in construction and advisory services, reflecting the importance of data centers in supporting AI-driven technologies.
"AI is absolutely driving our business", Pragada stated. "We’re seriously at an inflection point, and it’s accelerating our entire business."
Currently, data centers account for approximately 3% to 4% of Jacobs’ overall business, while the broader AI infrastructure ecosystem represents around 10% of its portfolio. Pragada noted that this part of the business is growing at a rate exceeding 40%, underscoring its strategic importance to the company.
"You’re talking about a significant part of our business that’s growing at a very fast rate", said Pragada. "All centered around the AI infrastructure build."
The expansion of data centers is also creating ripple effects across other sectors. Pragada highlighted rising demand for semiconductors, water, and energy and power, which are crucial for supporting AI infrastructure. These interconnected areas are further bolstering Jacobs’ total revenue growth.
"We’re seeing rising demand in semiconductors, water and energy and power as the technology and infrastructure go hand in hand", Pragada explained. "This is bolstering total revenue growth."
Jacobs reported a loss of $45.88 million for the fiscal second quarter, compared to a $5.61 million profit in the same period last year. This loss was attributed to the completion of the company’s acquisition of the remaining stake in PA Consulting. However, revenue for the quarter rose to $3.69 billion, marking a 27% increase from $2.91 billion in the prior year.
The company’s backlog also grew significantly, reaching $26.97 billion, up 21.7% from $22.16 billion a year earlier. According to Pragada, strong second-quarter performance has allowed Jacobs to increase its full-year outlook for the second consecutive quarter.
"We’re tracking very well heading into the second half of the fiscal year with strong Q2 performance enabling us to increase our full-year outlook for the second consecutive quarter", said Pragada. "We’re seeing momentum in our growth rate, margin and bookings trajectory, all of which give us confidence in our outlook."
Industry analysts have taken note of this performance as well. Andrew Wittmann, senior research analyst with Baird, pointed to the company’s infrastructure and advanced buildings businesses benefiting from strong demand, particularly along the AI value chain.
"Ultimately, its infrastructure and advanced buildings businesses are benefiting from strong demand, much of which is along the AI value chain with rapid growth from a prior very small base", Wittmann wrote in a research note.
As Jacobs continues to harness the momentum of AI-driven growth, its commitment to expanding infrastructure capabilities positions the company to maintain its trajectory in the second half of the fiscal year and beyond.
