GET DAILY SIGNALSTetra Tech (TTEK) Posts Record Fourth-Quarter EPS as Backlog Expands
Key Takeaways
- Tetra Tech closed fiscal 2026 with record fourth-quarter earnings per share (EPS) of $0.51 and adjusted EPS of $0.49, up 9% year over year.
- Fourth-quarter revenue totaled $1.34 billion, with net revenue of $1.15 billion as the company continued its "Leading with Science" water and environment focus.
- Backlog reached $4.67 billion, up 13% year over year, supported by major contract wins from NASA, the U.S. Navy, and the EPA.
- Full-year fiscal 2026 EPS came in at $1.69, with net revenue of $4.35 billion and operating income of $619 million.
- Management issued fiscal 2027 guidance for EPS of $1.65 to $1.80 and net revenue of $4.425 billion to $4.625 billion.
- For more context, explore Tetra Tech's Major News, Today's Price Move, Price Targets, and Forecast pages.
- Looking for broader market ideas? Explore Trending AI Robots to see what automated strategies are gaining traction.
Earnings Context and Why It Matters
Tetra Tech, Inc. (NASDAQ: TTEK) is a global provider of high-end consulting and engineering services across water, environment, and sustainable infrastructure. Its fourth-quarter and full-year report matters because it offers a snapshot of demand for essential infrastructure services at a time when government budgets, water resilience, and defense modernization are top priorities. Coming off a fiscal 2025 marked by record net revenue and operating income, investors were watching whether the company could sustain margin expansion and convert its pipeline into backlog. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The results also carry weight because Tetra Tech relies heavily on federal, state, and local contracts, making its quarterly commentary on funding trends a useful signal for the broader engineering and construction services sector.
Reported Results
For the fourth quarter ended September 27, 2026, Tetra Tech reported revenue of $1.34 billion and net revenue—revenue after subtracting subcontractor costs—of $1.15 billion. Net revenue rose 5% year over year excluding episodic disaster response work. Operating income was $188 million, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $194 million, with the adjusted EBITDA margin up 90 basis points year over year. Fourth-quarter EPS was a record $0.51, and adjusted EPS was $0.49, up 9% from the prior-year period.
For the full fiscal year 2026, revenue was $5.08 billion and net revenue was $4.35 billion, up 7% year over year excluding USAID, Department of State (DOS), and episodic disaster response work. Operating income reached $619 million, adjusted EBITDA was $660 million, and EPS came in at $1.69, with adjusted EPS of $1.60. Cash generated from operations climbed 14% year over year. Backlog at quarter-end stood at $4.67 billion, up 13% from the prior year.
Management also highlighted recent wins, including a $1.4 billion blanket purchase agreement for NASA logistics services, a $145 million U.S. Navy contract, and a $141 million water infrastructure contract with the EPA. The Board approved a quarterly dividend of $0.072 per share, an 11% increase, marking the 46th consecutive double-digit annual dividend hike.
Market Reaction and Investor Sentiment
Tetra Tech's fourth-quarter report arrived against a backdrop of solid execution and rising backlog. The combination of record quarterly EPS, expanding margins, and a 13% increase in backlog reinforced the narrative that demand for water, environment, and infrastructure services remains resilient. Investors tend to read backlog growth as a forward indicator of future revenue, so the $530 million-plus sequential increase was a key sentiment driver. The dividend increase and continued share repurchases—$100 million in the quarter, with $798 million remaining under the buyback program—further signaled management confidence. As with any earnings event, near-term stock moves will also reflect how investors weigh the new fiscal 2027 guidance against their own expectations for federal funding and commercial demand.
Forward Outlook and Key Factors to Monitor
Management provided its first look at fiscal 2027, guiding first-quarter EPS to a range of $0.36 to $0.38 and net revenue to $1.04 billion to $1.08 billion. For the full fiscal year, Tetra Tech expects EPS of $1.65 to $1.80 and net revenue of $4.425 billion to $4.625 billion. These ranges imply continued growth but leave room for variation depending on funding and project timing. I reviewed recent signals on the name with Tickeron’s AI Daily Buy/Sell Signals to get additional perspective on near-term momentum.
Several factors are worth monitoring next. First, backlog conversion will be critical: investors will want to see the record backlog translate into revenue without margin erosion. Second, federal funding visibility remains a recurring theme, since shorter-duration task orders and budget cycles can influence the pace of bookings and revenue recognition.
Third, the mix of work matters. Tetra Tech has emphasized higher-margin, fixed-price contracts and high-end design services in areas such as water supply, coastal infrastructure, and defense modernization. A continued shift toward this type of differentiated work could support further margin expansion, while any slowdown in commercial or renewable energy activity could offset those gains. Finally, watch for acquisition activity and capital allocation, given the company's strong cash generation and remaining buyback capacity. These levers, alongside demand signals in water and infrastructure, will shape how the market interprets Tetra Tech's momentum through fiscal 2027.
Exploring AI Tools for Stock Analysis
In my own research, I frequently rely on Tickeron’s AI Screener to scan for stocks meeting specific technical and fundamental criteria. It allows me to quickly compare names like Tetra Tech against peers and surface ideas that align with the themes I am following in infrastructure and engineering services. The tool has become a regular part of how I organize and validate ideas before digging deeper into individual reports.
Disclaimer
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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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