Tetra Tech (TTEK): Navigating Growth Amid Infrastructure Investment Uncertainty

Sands Capital , an investment management company, released its second-quarter 2026 investor letter for "Sands Capital Global Growth Fund". The letter can be downloaded here . Global Growth seeks the best growth businesses worldwide, leveraging a research team that explores both developed and emerging markets for sustainable competitive advantages. In the quarter, global equities rebounded strongly, driven by AI infrastructure, a key market theme, with demand for computing capacity remaining robust and large tech firms maintaining significant capital investments. Emerging markets, led by Korea and Taiwan, outperformed U.S. and developed markets for six consecutive quarters. The strategy's portfolio returned 22.2%, outperforming the MSCI All Country World Index's 14.9%. The quarter's gains were mainly due to earnings growth in AI infrastructure businesses. Relative results were driven by information technology and industrials, while financials and communication services detracted. The strategy is positioned to capitalize on evolving growth opportunities, with substantial exposure to AI infrastructure and other long-term prospects. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Sands Capital Global Growth Fund highlighted Tetra Tech, Inc. (NASDAQ: TTEK ). Tetra Tech, Inc. (NASDAQ:TTEK) is a US-based consulting and engineering services company focusing on water, environment, and sustainable infrastructure. On September 04, 2026, Tetra Tech, Inc. (NASDAQ:TTEK) closed at $35.91 per share. Over the past month, Tetra Tech, Inc. (NASDAQ:TTEK) returned 2.48%, but its shares are up 0.56% over the past year. Tetra Tech, Inc. (NASDAQ:TTEK) has a market capitalization of $9.19 billion.

Sands Capital Global Growth Fund stated the following regarding Tetra Tech, Inc. (NASDAQ:TTEK) in its Q2 2026 investor letter:

"Tetra Tech, Inc. (NASDAQ:TTEK) is the United States' leading water-related engineering and construction design firm by market share. The business is a primary beneficiary of increased U.S. infrastructure and manufacturing investment, especially related to water conservation, weather-related risk, and domestic self-sufficiency. We purchased the business in December 2024 amid what we viewed as a valuation opportunity driven by uncertainty about what a Trump administration might mean for its growth prospects. Consulting is another sector, like software, that has seen negative revisions due to the potential for AI disruption and faces associated terminal value questions. While we think Tetra Tech is better positioned than other IT services or government services businesses, we believe it is likely to share similar trading dynamics. Fundamentally, execution has been mixed, with concerning backlog dynamics even after adjusting for the distortion from the USAID shutdown. Given these considerations, we believe there are higher conviction opportunities that can provide the portfolio with the differentiated earnings and valuation potential that we sought to achieve by owning Tetra Tech."