| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 22.0x | 17.8x | Around median | |
Growth | 54 | -7.6% | 7.1% | Around median | |
Quality | 72 | 16.0% | 4.5% | Top tier | |
Safety | 79 | 1.2x | 2.6x | Top tier | |
Capital Return | 32 | 0.73% | 2.12% | Bottom tier | |
Momentum | 60 | -5.7% | 2.9% | Around median | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Tetra Tech operates in applied science and front-end technical engineering services for water, environmental, and sustainable infrastructure projects. It generates revenue through two main groups: Government Services Group, which serves U.S. federal, state, and local government agencies, and Commercial/International Group, which carries out water, energy, mining, and digital automation work internationally and commercially. In Q3 fiscal 2026, international operations represented 47% of activity, U.S. federal operations 20%, and U.S. commercial operations 20%.
According to EDGAR data, the company recorded Q3 fiscal 2026 revenue of $1.3 billion, gross profit of $243.2 million, net income of $109.8 million, and earnings per share of $0.42; equivalent to a gross margin of approximately 18.7% and a net income margin of approximately 8.4%. On the net revenue basis used in management's presentation, revenue reached $1.1 billion and exceeded the upper end of its guidance, while Government Services Group net revenue grew 7% with a 17.5% margin, and Commercial/International Group net revenue grew 9% with a 15.1% margin.
For the twelve months ended within fiscal 2026, the latest EDGAR data show revenue of approximately $5.1 billion, gross profit of $951.8 million, net income of $436.8 million, and earnings per share of approximately $1.68. During the first nine months of fiscal 2026, net income attributable to shareholders reached $308.2 million, and operating cash flow reached a record $467 million, up 31% from the corresponding period of fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus is neutral, with an average price target of $37, while the highest and lowest targets are both $37; therefore, the target range provides no diversity of views, and the target is below the 52-week range high of $43.14 and above its low of $25.81. No price-to-earnings ratio is available in the data, preventing a reliable comparison based on it; the valuation balances higher fiscal 2026 guidance and improved margins on one hand against the $57 million Department of Justice settlement and weakness in some federal and renewable energy operations on the other.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Growth came primarily from the U.S. federal and international markets, each of which grew 12% year over year in Q3 fiscal 2026. International operations benefited from water programs in the United Kingdom, Ireland, and the Netherlands, Canadian infrastructure, and mining and digital automation in Australia. In the United States, water, environmental, and defense projects supported demand, while backlog increased by $208 million to just under $4.5 billion.
Water is central to Tetra Tech's services in treatment, water quality, hydropower, digital systems, and cybersecurity. The company serves more than 500 municipal clients in the United States, and its municipal water treatment business grew more than 10% in Q3 fiscal 2026. Internationally, its opportunities are tied to a British water investment cycle of approximately £105 billion through 2030 and contract capacity exceeding £2 billion in the United Kingdom, Ireland, and the Netherlands.
Yes, management raised its fiscal 2026 net revenue guidance to a range of between $4.315 billion and $4.365 billion. It also raised its adjusted earnings per share range to between $1.56 and $1.59, with expected net revenue growth of 8% and margin expansion of 70 basis points at the midpoint of the range. For Q4 fiscal 2026, it expects net revenue of between $1.12 billion and $1.17 billion and adjusted earnings per share of between $0.45 and $0.48.
On August 25, 2026, Tetra Tech agreed to pay $57 million to settle a lawsuit brought by the U.S. Department of Justice. The lawsuit involved allegations of falsifying soil test results and manipulating data submitted regarding work for the U.S. Navy at the former shipyard in San Francisco. The settlement represents a direct financial cost and also creates reputation and compliance risk in a business that partly depends on winning sensitive government and environmental contracts.
Management said on the July 30, 2026 call that Tetra Tech uses artificial intelligence as a tool to empower its experts, not as a replacement for its technical work. The company's solutions depend on site-specific information, such as geology, field conditions, regulatory frameworks, and community priorities, after which customized solutions are developed for each client. Management believes artificial intelligence can expand the number of alternatives and datasets analyzed and support market share growth and improved margins on fixed-price projects, but the risks of artificial intelligence-enabled competition do not disappear entirely.
The company generated operating cash flow of $467 million during the first nine months of fiscal 2026, up 31% from the corresponding period of fiscal 2025. It repurchased $200 million of shares during the same period, with $398 million remaining available under the program, while the board also increased the quarterly dividend by 11%. At the same time, the company maintained net debt equal to 0.88 times earnings before interest, taxes, depreciation, and amortization and completed the acquisitions of Halvik and Providence for an estimated combined value of $232 million.
