Tetra Tech has a four-quarter earnings beat streak with a 10.7% average surprise and an attractive forward P/E of 16.3x with a PEG near zero, but a death cross with negative 3.7% moving average slope and declining revenue signal that the near-term technical environment requires patience before entry.
Thesis pillars
- Earnings Beat Streak Quality↑Improving
- Attractive Valuation High Roe→Stable
- Death Cross Downtrend Block↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Tetra Tech, Inc. (TTEK) Stock Analysis
Industrials · Engineering & Construction
Wait for pullback to $30.83. At $31.71 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $30.83 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 8.4%.
Tetra Tech provides high-end consulting and engineering services in water, environment, and sustainable infrastructure through two segments: Government Services Group (GSG, 49.1% of fiscal 2025 revenue) and Commercial/International Services Group (CIG, 52.3%), serving U.S.... Read more
Wait for pullback to $30.83. At $31.71 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $30.83 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 8.4%. Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 3 days. Wait until post-earnings. Score 5.4/10, moderate confidence.
Passes 3/8 gates (clean insider activity, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 3d<=7d. Suitability: moderate.
About Tetra Tech, Inc.
About Tetra Tech, Inc.
Tetra Tech ended fiscal 2025 with a $4.1 billion backlog and more than 25,000 associates delivering water, environment, and sustainable infrastructure services on over 100,000 projects across more than 100 countries. Revenue splits between its Government Services Group (GSG, 49.1% of fiscal 2025 revenue), which serves U.S. federal, state, and local clients, and its Commercial/International Services Group (CIG, 52.3%), which serves U.S. commercial and international clients. International clients, primarily in Australia, Canada, and the United Kingdom, contributed 37.4% of fiscal 2025 revenue.
The revenue model combines fixed-price (43.5% of fiscal 2025 revenue), time-and-materials (42.6%), and cost-plus (13.9%) contracts, with revenue recognized on a percentage-of-completion basis across project lifecycles. U.S. federal clients represented 31.6% of revenue, with the Department of Defense at 11.6% and USAID at 10.6% each individually exceeding 10% of total revenue in fiscal 2025. Tetra Tech supports a broad range of client missions including water treatment and distribution, environmental remediation, disaster recovery, and infrastructure engineering, and has been ranked No. 1 in water treatment and desalination by Engineering News-Record for 12 consecutive years. The company differentiates through its Tetra Tech Delta suite of proprietary analytics and AI-enabled tools for infrastructure assessment, spatial data interpretation, and water system optimization. Competition is fragmented, spanning large national engineering firms and specialized regional consultants.
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Government-contract concentration is the most directly quantified risk in the filing: U.S. federal contracts are terminable at the government's discretion without cause, and annual appropriations cycles create visibility gaps between backlog and realized revenue. USAID accounted for 10.6% of fiscal 2025 revenue, down from 13.0% in fiscal 2024, a decline that may reflect shifting foreign aid priorities; further reductions could create a meaningful revenue gap given the agency's historical share. DoD concentration at 11.6% of fiscal 2025 revenue carries different dynamics — defense budgets are more stable than foreign aid appropriations — but remains subject to program delays and authorization risk. In March 2026, Tetra Tech appointed Eric Thornburg, former CEO of H2O America (SJW Group) from 2017 to 2025, to its Board of Directors.
See also: Industrials · Engineering & Construction
From Tetra Tech, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-07-26Recent Developments — Tetra Tech, Inc.
Latest news
- NEWS Tetra Tech (NASDAQ:TTEK) Posts Better-Than-Expected Sales In Q1 CY2026, Stock Soars - StockStory — StockStory positive
- NEWS Earnings Flash (TTEK) Tetra Tech, Inc. Posts Q2 Adjusted EPS $0.34 per Share, vs. FactSet Est of $0.32 - marketscreener. — marketscreener.com positive
- NEWS Tetra Tech (TTEK) Stock Trades Below Fair Value On Its 22% Five Year Gain - Yahoo Finance — Yahoo Finance neutral
- NEWS Tetra Tech (TTEK) to Release Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Tetra Tech (TTEK) Awarded Major Contract for PFAS Treatment Faci - GuruFocus — GuruFocus positive
Generated 2026-07-26T14:02:19Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerUSAID11%10-K Item 1: 'The United States Agency for International Development ("USAID") accounted for 10.6%, 13.0% and 12.2% of our revenue in fiscal 2025, 2024 and 2023, respectively.'
- LOWCustomerDoD12%10-K Item 1: 'The Department of Defense ("DoD") accounted for 11.6%, 8.5% and 8.9% of our revenue in fiscal 2025, 2024 and 2023, respectively.'
- MEDIUMGeographicinternational operations37%10-K Item 1A: 'In fiscal 2025, we generated 37.4% of our revenue from our international operations'
Material Events(8-K, last 90d)
- 2026-03-26Item 5.02LOWEric W. Thornburg appointed to Board of Directors effective March 30, 2026. Former CEO of H2O America (SJW Group) from 2017 to 2025. Named to Compensation Committee and Nominating/Corporate Governance Committee. No officer departure.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -4.9% YoY. Growth thesis broken unless recovery story develops.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $30.83. At $31.71 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $30.83 (1 ATR pullback) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 8.4%. Chart setup: No clear chart pattern; technical signals are mixed. Earnings in 3 days. Wait until post-earnings. Target $34.37 (+8.4%), stop $29.07 (−9.1%), A.R:R 0.7:1. Score 5.4/10, moderate confidence.
Take-profit target: $34.37 (+8.4% upside). Target $34.37 (+8.4%), stop $29.07 (−9.1%), A.R:R 0.7:1. Stop-loss: $29.07.
Thin upside margin: 8.4%.
Tetra Tech, Inc. trades at a P/E of 19.0 (forward 18.5). TrendMatrix value score: 7.2/10. Verdict: Buy (Wait for Entry).
15 analysts cover TTEK with a consensus score of 4.0/5. Average price target: $40.
What does Tetra Tech, Inc. do?Tetra Tech provides high-end consulting and engineering services in water, environment, and sustainable infrastructure...
Tetra Tech provides high-end consulting and engineering services in water, environment, and sustainable infrastructure through two segments: Government Services Group (GSG, 49.1% of fiscal 2025 revenue) and Commercial/International Services Group (CIG, 52.3%), serving U.S. federal (31.6%), state/local (14.5%), commercial (16.5%), and international clients (37.4%). USAID accounted for 10.6% and the Department of Defense for 11.6% of fiscal 2025 revenue; backlog stood at $4.1 billion at fiscal year-end.