Tetra Tech beats Q3 revenue estimates on federal and international growth, raises FY adjusted EPS guidance

Tetra Tech

29/07/2026 21:12

Overview
US engineering services firm's Q3 revenue beat analyst expectations
EPS for Q3 was $0.42; backlog rose 5% sequentially
Company raised FY26 guidance and repurchased $100 mln in stock

Outlook
Tetra Tech expects Q4 net revenue between $1.12 bln and $1.17 bln
Company sees Q4 EPS between $0.45 and $0.48
Tetra Tech raises FY26 adjusted EPS guidance to $1.56-$1.59
Company narrows FY26 net revenue guidance to $4.315 bln-$4.365 bln

Result Drivers
FEDERAL AND INTERNATIONAL GROWTH - Co said Q3 growth was primarily driven by double-digit increases in U.S. federal and international end markets
NEW ORDERS - Significant new orders, including commercial contracts for data center and sediment restoration projects, contributed to backlog increase
STRONG CASH FLOW - Management attributed record cash flow to ability to generate more cash than net income, supporting acquisitions, buybacks, and dividends

Company press release: ID:nBwc18QrMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.31 bln
$1.08 bln (6 Analysts)
Q3 EPS
 
$0.42
 
Q3 EBITDA
 
$173 mln
 
Q3 Operating Income
 
$158 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Tetra Tech Inc (Delaware) is $42.00, about 25.3% above its July 28 closing price of $33.51
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
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July 29 - CBRE raises profit forecast as data center expansion boosts real estate services demand
July 29 - Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)