The strong beat and raised guidance, combined with record cash flow and aggressive buyback execution, suggest the stock should re-rate higher. Monitor the Q4 FY26 earnings call for updates on the USACE and FAA contract wins and the trajectory of the CIG segment's net revenue growth, which accelerated to $634.2M in Q3 from $591.2M in Q2.
Price Chart
Executive Summary
Tetra Tech reported strong Q3 FY2026 results with EPS of $0.42 beating consensus of $0.40 by 5.9%, and revenue of $1.31B exceeding the $1.08B estimate. The company raised its full-year adjusted EPS guidance to $1.56-$1.59 and narrowed its net revenue range to $4.315B-$4.365B, driven by double-digit growth in U.S. federal and international end markets and a record backlog of $4.49B. The combination of a clear earnings beat, raised guidance, record cash flow, and aggressive capital returns ($100M in buybacks, 11% dividend increase) signals strong operational momentum and management confidence, making this a bullish event for the stock.
Key Financial Metrics
Key Facts
- EPS of $0.42 beat consensus of $0.40 by 5.9%
- Revenue of $1.31B exceeded $1.08B consensus estimate
- Net revenue increased 8% Y/Y excluding USAID/DOS and episodic disaster response
- Full-year adjusted EPS guidance raised to $1.56-$1.59 from prior $1.46-$1.56
- FY26 net revenue guidance narrowed to $4.315B-$4.365B, representing an increased midpoint
- Backlog reached $4.49B, up 5% sequentially
- Record cash from operations of $467M through first three quarters of FY26
- Repurchased $100M of common stock in Q3; $398M remaining under buyback program
- Quarterly dividend increased 11% to $0.072 per share, 45th consecutive double-digit increase
- Operating income of $158M; EBITDA of $173M
Financial Impact
EPS beat of $0.02 (5.9%) on consensus of $0.40; revenue beat of ~$230M (21.3%) vs $1.08B estimate; FY26 adjusted EPS guidance raised by $0.07 at midpoint to $1.575
Risk Factors
- Revenue still declined 4.5% YoY on a reported GAAP basis ($1.31B vs $1.37B) due to the wind-down of USAID/DOS contracts and episodic disaster response work
- Long-term debt increased to $801M from $763M at fiscal year-end, partly funding acquisitions
- Goodwill and intangible assets grew to $2.34B, increasing impairment risk if growth slows
- Concentration of revenues from U.S. government agencies exposes the company to potential funding disruptions or policy changes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-088213 |
| Document: tm2621536d1_8k.htm | 0001104659-26-088213 |
| Document: 0001104659-26-088213-index-headers.html | 0001104659-26-088213 |
| Document: 0001104659-26-088213-index.html | 0001104659-26-088213 |
| Document: 0001104659-26-088213.txt | 0001104659-26-088213 |
| 8-K Data (Synthetic) | 0001104659-26-088213 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 8-K | $35.71 $36.11 | ▲ +1.12% | ▲ +1.62% | $33.12 (−7.25%) |
Jul 29, 2026 9w ago | 8-K | $32.45 $34.73 | ▲ +7.03% | ▲ +3.40% | $33.12 (+2.06%) |
Feb 17, 2026 32w ago | Court Ruling | $35.53 $32.88 | ▼ −7.46% | ▼ −8.12% | $33.12 (−6.78%) |
US Market Status
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