GET DAILY SIGNALSTetra Tech (TTEK) Climbs +11% After Fiscal 2026 Earnings Beat and Backlog Growth
Key Takeaways
- Tetra Tech closed fiscal 2026 with fourth-quarter net revenue of $1.15 billion, in line with consensus, and adjusted EPS of $0.49, beating the $0.47 analyst estimate.
- Reported EPS hit a record $0.51 for the quarter, and full-year EPS reached a record $1.69 (adjusted EPS of $1.60).
- Backlog climbed 13% year-over-year to $4.67 billion, adding more than $530 million on strong water, environmental, and defense demand.
- Adjusted EBITDA margin expanded 90 basis points year-over-year.
- Management initiated fiscal 2027 guidance of $1.65–$1.80 in EPS and $4.425–$4.625 billion in net revenue.
- The quarterly dividend rose 11% to $0.072 per share, marking the company's 46th consecutive double-digit increase.
Why These Results Stand Out
Tetra Tech provides high-end technical and engineering services centered on water, environment, and sustainable infrastructure. The fourth-quarter and full-year fiscal 2026 results, released after the market close on November 11, 2026, offer a clear view of how the company is handling changes in U.S. government funding while expanding its commercial and international work. I was particularly interested in whether demand momentum, margin gains, and steady capital returns could counterbalance the wind-down of USAID and Department of State projects. The strong backlog growth and record profitability point to solid underlying demand as the new fiscal year begins.
Quarter and Full-Year Numbers
For the fourth quarter ended September 27, 2026, Tetra Tech reported revenue of $1.34 billion and net revenue of $1.15 billion, with net revenue up 5% year-over-year excluding episodic disaster response. Operating income came in at $188 million, and adjusted EBITDA reached $194 million, with the adjusted EBITDA margin rising 90 basis points from the prior year. EPS was a record $0.51, while adjusted EPS of $0.49 increased 9% year-over-year and topped the $0.47 consensus.
Over the full fiscal year 2026, revenue totaled $5.08 billion and net revenue $4.35 billion, up 7% excluding USAID/DOS and episodic disaster response. Operating income was $619 million, adjusted EBITDA was $660 million, and EPS reached a record $1.69. Cash flow from operations grew 14% year-over-year. Backlog stood at $4.67 billion, up 13% year-over-year, helped by wins including a $1.4 billion NASA logistics agreement and contracts with the U.S. Navy and EPA. Management guided fiscal 2027 EPS of $1.65–$1.80 and net revenue of $4.425–$4.625 billion, with first-quarter fiscal 2027 EPS of $0.36–$0.38 and net revenue of $1.04–$1.08 billion.
Market Response and Investor View
Tetra Tech shares rose sharply after the release, climbing roughly 11% as investors focused on the adjusted EPS beat, record profitability, and 13% backlog increase. The positive move showed confidence that demand in water, environmental, and defense areas remains steady even as USAID/DOS revenue declines. The 46th straight double-digit dividend hike and $100 million in share repurchases during the quarter added to the shareholder-friendly tone. Some caution came from first-quarter fiscal 2027 EPS guidance landing below certain consensus estimates, but the solid quarter and growing backlog carried the day.
Looking Ahead
The record $4.67 billion backlog gives Tetra Tech a firm base for fiscal 2027 revenue growth. Management highlighted rising needs for water and environmental programs, digital automation, and resilient infrastructure across water supply, coastal work, and defense modernization. Margin trends also deserve attention after the 90-basis-point adjusted EBITDA expansion in fiscal 2026, with further gains expected as the mix shifts toward higher-margin technical services. Updates on government funding and contract awards will matter, given the role of U.S. federal work alongside commercial and international segments. The $1.65 to $1.80 EPS guidance range for fiscal 2027 allows room for upside if backlog converts well and margins keep improving.
Using AI Tools in My Research
I also checked this using Tickeron's AI Screener to see how the stock compares to others in the industry. It helps quickly surface comparable setups and momentum signals across engineering and infrastructure names without manual effort. The tool has become a regular part of my process for spotting patterns and filtering opportunities efficiently when reviewing earnings like these.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TTEK in -1.59% downward trend, falling for three consecutive days on November 06, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where TTEK declined for three days, in 187 of 295 cases, the price declined further within the following month. The odds of a continued downward trend are 63%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 19 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
TTEK broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on TTEK as a result. In 72 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for TTEK just turned positive on October 14, 2026. Looking at past instances where TTEK's MACD turned positive, the stock continued to rise in 26 of 39 cases over the following month. The odds of a continued upward trend are 67%.
TTEK moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TTEK crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
Following a +3.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where TTEK advanced for three days, in 197 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
The Aroon Indicator entered an Uptrend today. In 103 of 205 cases where TTEK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 50%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. TTEK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 66 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.570) is normal, around the industry mean (15.143). P/E Ratio (23.982) is within average values for comparable stocks, (167.534). Projected Growth (PEG Ratio) (0.880) is also within normal values, averaging (3.522). Dividend Yield (0.007) settles around the average of (0.215) among similar stocks. P/S Ratio (1.886) is also within normal values, averaging (2.886).
The Tickeron Profit vs. Risk Rating rating for this company is 66 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 86 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of environmental engineering, technical and consulting services
Industry EngineeringConstruction
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