TTEK earnings analysis
What we found in TTEK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Tetra Tech's Q2 2026 results showed revenue of $1.22 billion and EPS of $0.36, both surpassing estimates, with revenue growth in the international and commercial segments. However, the overall revenue declined 11.4% year-over-year primarily due to reductions in U.S. federal contracts, particularly those related to USAID programs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Significant Revenue Beat
- Reported revenue was $1.22 billion, exceeding estimates of $1.00 billion by 21.58%.
- Positive EPS Surprise
- EPS was reported at $0.36, beating the estimate of $0.32 by 6.25%.
- Strong Cash Generation
- Operating cash flow was $237.6 million, significantly up from $7.2 million in the prior year.
- International Segment Growth
- International revenue increased by 9.6% year-over-year, reaching $1.07 billion.
- Stock Repurchase Program Continues
- Completed $100 million in stock repurchases for the first half of fiscal 2026.
- Improved Operating Margin
- Operating margin rose to 16.4% in H1 2026 compared to 14.2% in H1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Reduced U.S. Federal Revenue
- U.S. federal government revenue declined 36.1% year-over-year to $584.7 million due to USAID contract cancellations.
- Increased Debt Load
- Outstanding borrowings under the amended credit agreement were $315 million, with a weighted-average interest rate of 5.05%.
- Dependence on Government Contracts
- Revenue heavily relies on government contracts, which are subject to changes in policy and government funding.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.36
- Gross margin
- 17.6%
- Operating margin
- 10.8%
- Segment
- Government Services Group
- Segment
- Commercial/International Services Group
What they said about what is next.
Guidance reflects expectations for fiscal year 2026 based on current market trends.
The filing reads better than the one before it.
What came before.
- 10-K · November 22, 2023
- Tetra Tech reported fiscal 2023 revenue of $4,522,550,000, up 29.1% year-over-year (including the RPS acquisition), with diluted EPS of $5.10 and adjusted EPS of $5.21. Growth was driven by the January 23, 2023…
- 10-Q · August 10, 2023
- Tetra Tech reported strong top-line growth in Q3: revenue rose to $1,208,947,000 (vs. $890,231,000 a year earlier, +$318,716,000, ≈35.8%), driven largely by international and acquisition contributions. Gross margin…
- 10-Q · May 11, 2023
- Tetra Tech reported Q2 revenue of $1,158,226,000, up $305,482,000 (≈35.8%) versus the prior-year quarter, driven in part by the acquisitions of RPS and Amyx. Gross margin compressed to 14.75% from 15.86% and operating…
- 10-K · November 25, 2022
- Tetra Tech reported fiscal 2022 revenue of $3,504,048 (as presented in the filing) — up 9.0% year-over-year — with diluted EPS of $4.86 and adjusted EPS of $4.50 (up 18.7%). Operating income improved 22.2% to $340,446…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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