The construction boom tied to artificial intelligence shows little sign of slowing, and Jacobs is among the firms benefiting most. During its fiscal first-quarter earnings call Tuesday, the Dallas-based contractor reported strong gains in both revenue and profit, driven largely by demand for data centers, semiconductor facilities and advanced manufacturing plants.
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CEO Bob Pragada said pipeline growth reached double-digit rates across major business lines. Life sciences and advanced manufacturing work climbed about 25% year over year, while critical infrastructure jumped more than 50%. Those figures represent roughly a 12- to 18-month backlog across markets in the U.S., Middle East and Europe.
Much of that momentum is directly linked to AI.
“If you think about the speed right now that we are going at, especially not just in the private sector, but also in the water market and transportation, the schedules and the delivery model for these can’t be done without the use of the AI platform,” Pragada said. “It is driving backlog growth through differentiation in our award rates.”
To capitalize on the opportunity, Jacobs has doubled the size of its AI development and consulting teams. The company is embedding digital tools into project controls, scheduling and field management to improve predictability and reduce rework.
One platform in particular has gained traction.
“In the field, we’re using some strong predictive analytics platform called Acuity in order to really get out in front of field level issues that are coming up in real time,” Pragada said. “That’s been a real game changer for us. We’ve got Acuity deployed across all of our end markets in the field program management work that we do.”
Executives said these capabilities are helping Jacobs win more complex scopes on hyperscale data centers and chip manufacturing plants. While owners frequently purchase major electrical equipment directly, Jacobs is increasingly hired to integrate those components, handle balance-of-plant construction and manage utility interconnections. That structure allows the firm to earn fees even when high-value equipment is passed through.
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Beyond advanced facilities, Jacobs also posted robust demand in the water sector. Chief Financial Officer Venk Nathamuni noted that bookings for water-related construction have grown consistently over several quarters in both domestic and international markets, providing a stabilizing counterweight to cyclical technology work.
Financial results reflected that broad strength. Jacobs reported $125.51 million in profit for the fiscal first quarter of 2026, a sharp turnaround from an $18.13 million loss a year earlier. Revenue reached $3.29 billion, up 12.3% from $2.93 billion in the prior-year period.
The company’s backlog climbed to $26.3 billion for fiscal 2025, a 20.6% increase from $21.82 billion in 2024.
“Larger scope awards for data centers, life sciences and advanced manufacturing were the clear drivers,” wrote Andrew Wittmann, senior research analyst with Baird. “Net, seemingly good demand is holding up, execution is as expected.”
Industry analysts say Jacobs’ performance reflects a broader shift in construction, where AI-related infrastructure is becoming a foundational market rather than a niche. With hyperscale operators racing to secure power and capacity, engineering and program management firms are seeing opportunities that extend well beyond traditional design roles.
For Jacobs, that means leaning further into digital delivery and automation while maintaining expertise in conventional infrastructure. Executives indicated that investment in AI platforms will continue through 2026 as the company positions itself for the next wave of megaprojects.
Originally reported by Sebastian Obando, Reporter in Construction Dive.
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