10 Best Engineering Stocks to Buy in 2026

In this article, we will discuss the 10 Best Engineering Stocks to Buy in 2026.

Earlier in April, Fortune Business Insights reported that the global engineering services market was valued at $2.34 trillion in 2025 and is projected to reach $5.7 trillion by 2034, reflecting a CAGR of 10.60%. This expansion is driven by the rapid adoption of digital transformation, automation, and smart solutions across various verticals. Asia Pacific remains the dominant geographical force, holding a 37.30% market share as of 2025, supported by industrialization and a vast technical talent pool. GenAI is a pivotal trend within the industry, as companies increasingly integrate AI tools to automate routine tasks and optimize complex design processes. This shift allows engineers to focus on higher-level innovation and problem-solving, which in turn boosts productivity.

On May 4, Gregory Daco, EY-Parthenon Chief Economist, joined ‘Squawk Box’ on CNBC to outline a cautious outlook for the US economy, describing a landscape where growth is increasingly narrow and fragile. He identified three pillars currently supporting economic activity: affluent consumers, AI investment, and asset price appreciation driven by stock market gains. Daco warned that while these pillars can create a virtuous cycle, the economy is highly susceptible to shocks (such as geopolitical conflicts or doubts regarding AI returns) that could cause one of these pillars to fluctuate and lead to a pullback in activity.

A portion of the dialogue focused on the dominant role of AI in the current GDP. Daco revealed that AI investment contributed 1.5% to Q1’s 2% GDP growth, meaning it accounted for three-quarters of the total economic advance. He noted that AI spending is soaking up nearly all equipment investment; when information processing equipment (up 31%) is removed from the equation, general equipment spending grew by only 3%. This crowding out of investment in other sectors has been an ongoing trend for five years, leaving the economy resting on a dangerously narrow foundation.

Against this backdrop, engineering stocks exposed to AI, automation, and infrastructure demand remain worth watching.

Our Methodology

We used screeners and financial media reports to identify engineering stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.

Note: All data was sourced on May 6. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10 Best Engineering Stocks to Buy in 2026

10. Jacobs Solutions Inc. (NYSE:J)

Number of Hedge Fund Holders: 36

Jacobs Solutions Inc. (NYSE:J) is one of the best engineering stocks to buy in 2026. On April 22, Jacobs secured a key role in a joint venture with GHD and WSP to design 5 new underground stations for the Sydney Metro West project. Under the Stations Package West, Jacobs will provide integrated engineering design services for the stations at Westmead, North Strathfield, Burwood North, Five Dock, and The Bays.

This appointment reinforces the firm’s position as a global leader in transportation infrastructure, following its successful completion of previous tunnel and station excavation packages for the same metro line in late 2025. Executive VP Sinead Giblin highlighted that this project builds on Jacobs’ track record of supporting transformative rail investments that drive regional economic growth and housing development.

The firm’s design approach for these stations centers on high-performance infrastructure, specifically targeting a 6-Star Green Star As Built rating to meet rigorous sustainability and environmental standards. This project adds to a global portfolio of mass transit solutions that includes major programs in New York, the UK, and Malaysia. Ranked as the No. 2 firm in Transportation by Engineering News-Record, Jacobs Solutions Inc. (NYSE:J) continues to expand its footprint in Australia’s largest transport project through this collaboration with lead contractor Gamuda.

Jacobs Solutions Inc. (NYSE:J) provides consulting, design, engineering, and infrastructure delivery services for several industries.

9. Primoris Services Corporation (NYSE:PRIM)

Number of Hedge Fund Holders: 36

Primoris Services Corporation (NYSE:PRIM) is one of the best engineering stocks to buy in 2026. On May 5, Primoris announced financial results for Q1 2026, reporting revenue of $1.6 billion. While this represents a 5.4% decrease year-over-year, the company saw growth in its Utilities segment that helped offset lower revenue in the Energy sector. Net income for the quarter stood at $17.4 million, or $0.32 per diluted share, while the total backlog remained substantial at $11.6 billion.

Additionally, the company recently finalized the acquisition of PayneCrest Electric Inc. on May 1 to enhance its presence in the high-growth data center and industrial markets. The quarterly performance was impacted by cost pressures on a limited number of renewables projects, which are expected to reach completion later this year. However, President and CEO Koti Vadlamudi noted that the majority of the renewables portfolio is performing well, with margin expansion occurring in the power delivery and industrial businesses.

Looking ahead, Primoris Services Corporation (NYSE:PRIM) updated its full-year 2026 guidance to include the contributions from the PayneCrest acquisition, projecting net income between $223 million and $234 million. Full-year Adjusted EBITDA is estimated to range from $480 million to $500 million, with Adjusted EPS expected between $4.80 and $5.00.

Primoris Services Corporation (NYSE:PRIM) provides infrastructure services across the US and Canada.

8. IES Holdings Inc. (NASDAQ:IESC)

Number of Hedge Fund Holders: 37

IES Holdings Inc. (NASDAQ:IESC) is one of the best engineering stocks to buy in 2026. On May 1, IES Holdings reported financial results for FQ2 2026, with revenue reaching $974 million, a 17% increase year-over-year. Operating income rose 21% to $112.3 million, while net income attributable to IES climbed 56% to $109.9 million, resulting in diluted EPS of $5.44. These gains were driven by demand in the data center market, which fueled significant growth in the Communications & Infrastructure Solutions segments.

Performance varied across segments, with the Communications business posting a 35% revenue increase due to heightened data center and distribution center activity. The Infrastructure Solutions segment saw a 64% surge in revenue, aided by the January acquisition of Gulf Island Fabrication, Inc., which contributed $37.5 million during the quarter. Conversely, the Residential segment faced a 10% revenue decline due to ongoing softness in the housing market and pricing pressures from home builders.

IES Holdings Inc. (NASDAQ:IESC) ended the quarter with a solid financial position, maintaining $49.5 million in cash and over $214 million in marketable securities. While the Gulf Island integration is expected to yield more meaningful earnings contributions in fiscal 2027, the company continues to invest heavily in hiring and training to execute its expanding backlog.

IES Holdings Inc. (NASDAQ:IESC) provides integrated electrical and technology systems through four segments: Communications, Residential, Infrastructure Solutions, and Commercial & Industrial. Headquartered in Texas, the firm has operated since 1997.

7. Sterling Infrastructure Inc. (NASDAQ:STRL)

Number of Hedge Fund Holders: 38

Sterling Infrastructure Inc. (NASDAQ:STRL) is one of the best engineering stocks to buy in 2026. On May 4, Sterling Infrastructure reported results for Q1 2026, with revenues soaring 92% to $825.7 million. This growth was fueled by a 55% organic increase alongside the contribution of the recently acquired CEC business, which added $156.1 million to the quarter’s revenue. Net income surged 143% to $96.0 million, or $3.09 per diluted share, while adjusted EBITDA reached $166.6 million.

CEO Joe Cutillo noted that bid & award activity remained exceptionally strong, highlighted by a major award for a multi-year semiconductor fabrication campus and significant new projects for CEC. The E-Infrastructure Solutions segment was a primary driver of this momentum, achieving 174% revenue growth. Mission-critical projects, such as data centers and advanced manufacturing facilities, now represent over 90% of the segment’s backlog, as Sterling successfully integrates its site development expertise with CEC’s electrical services.

Based on this start and increased visibility into a total addressable pool of work approaching $6.5 billion, Sterling Infrastructure Inc. (NASDAQ:STRL) now expects annual revenue to range between $3.70 billion and $3.80 billion, with adjusted diluted EPS projected between $18.40 and $19.05. While the Building Solutions segment faces near-term challenges due to housing affordability constraints, the steady performance in Transportation Solutions and the rapid expansion of E-Infrastructure have positioned Sterling for a year of significant margin expansion and sustained value creation.

Sterling Infrastructure Inc. (NASDAQ:STRL) provides e-infrastructure, transportation, and building solutions across the US.

6. Legence Corp. (NASDAQ:LGN)

Number of Hedge Fund Holders: 40

Legence Corp. (NASDAQ:LGN) is one of the best engineering stocks to buy in 2026. On March 27, Legence reported financial results for FQ4 2025, with quarterly revenues reaching $737.6 million, a 34.6% year-over-year increase. This growth was organic and supported by a 53% rise in adjusted EBITDA to $87.0 million. The company’s total backlog and awarded contracts surged by 49% to a record $3.7 billion, driven largely by high demand in data centers, technology, and life sciences.

CEO Jeff Sprau highlighted that the company’s momentum is supported by strategic acquisitions, including the recent purchase of Seattle-based engineering firm Metrix Engineers LLC and the January 2026 acquisition of The Bowers Group, Inc. The company’s performance was led by its Installation & Maintenance segment, which saw a 44.4% revenue increase in the fourth quarter due to robust demand for mission-critical building systems.

While the Engineering & Consulting segment also grew by 10%, the company’s overall adjusted gross margins improved to 21.2% for the quarter. Based on this performance and ongoing industry tailwinds, Legence Corp. (NASDAQ:LGN) established positive guidance for FQ1 2026, projecting revenues between $925 and $950 million. Furthermore, the company has raised its full-year 2026 outlook, now forecasting total revenues of $3.7 billion to $3.9 billion and adjusted EBITDA between $400 and $430 million.

Legence Corp. (NASDAQ:LGN) provides engineering, installation, and maintenance services for mission-critical building systems in the US through its Engineering & Consulting and Installation & Maintenance segments.

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