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Quanta Services
(NYSE:PWR)
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Rating:73Outperform
Price Target:
$765.00
▲(22.24% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by strong financial performance (scaling revenue, improving margins, and sharp free-cash-flow improvement) and a very constructive earnings update (Q2 beat, record backlog, and raised full-year guidance with improved leverage). These positives are partially tempered by a rich valuation (high P/E and minimal yield) and only moderate technical momentum despite the longer-term uptrend.
Positive Factors
Record Backlog and Infrastructure Demand
The $53 billion backlog and broad demand across utilities, technology and renewables provide multi-year revenue visibility. This supports capacity planning and positions Quanta to benefit from sustained grid, generation and critical infrastructure investment.
Negative Factors
Thin Contractor Margins
Quanta’s margins remain modest for the execution risk inherent in engineering and construction. Cost inflation, labor shortages, subcontractor issues or project overruns could therefore have a meaningful effect on earnings and reduce the benefit of strong revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Backlog and Infrastructure Demand
The $53 billion backlog and broad demand across utilities, technology and renewables provide multi-year revenue visibility. This supports capacity planning and positions Quanta to benefit from sustained grid, generation and critical infrastructure investment.
Read all positive factors
Quanta Services Key Performance Indicators (KPIs)
Any
12-Month Backlog by Segment
Indicates the value of contracts yet to be completed in each segment over the next year, providing insight into future revenue potential and demand strength.
Indicates the value of contracts yet to be completed in each segment over the next year, providing insight into future revenue potential and demand strength.
Data provided by:
The Fly
The FlyQuanta Services (PWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.10B
Dividend Yield0.06%
Average Volume (3M)1.20M
Price to Earnings (P/E)81.7
Beta (1Y)1.23
Revenue Growth26.30%
EPS Growth34.94%
CountryUS
Employees69,500
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)8.84
Shares Outstanding150,343,400
10 Day Avg. Volume868,326
30 Day Avg. Volume1,198,548
Financial Highlights & Ratios
PEG Ratio5.33
Price to Book (P/B)7.16
Price to Sales (P/S)2.26
P/FCF Ratio39.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$801.88Price Target Upside28.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)16.6
Revenue Forecast (FY)$39.20B
Quanta Services Business Overview & Revenue Model
Company Description
Quanta Services, Inc. is a global provider of specialized contracting solutions. The company operates through three main business segments: The Electric Power Infrastructure Solutions division is dedicated to designing, procuring, constructing, up...
How the Company Makes Money
Quanta Services makes money primarily by delivering contracted infrastructure services and projects for customers that own or operate critical networks (especially electric utilities). Revenue is earned through customer contracts that generally fa...
Quanta Services Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: Quanta reported a strong Q2 beat with record backlog, raised full-year guidance, improved leverage and liquidity, robust free cash flow, and meaningful organic strength across utility, technology, MEP and renewables. Management reinforced a disciplined, craft-centric execution model and articulated clear synergies from recent M&A and fabrication investments. Key risks noted include timing/lumpiness of very large projects (many still early-stage), selective risk appetite on certain generation EPC work, regulatory/pipeline timing for some data center projects, long equipment lead times, and integration/contingent considerations from recent acquisitions. On balance, the positives (financial outperformance, backlog, guidance raise, cash flow and strengthened balance sheet) outweigh the noted execution and market risks.Positive Updates
Quarterly Financial Outperformance
Q2 2026 revenues of $9.6 billion; net income attributable to common stock of $451 million ($2.96 per diluted share); adjusted diluted EPS of $4.24; adjusted EBITDA of $1.1 billion — management described results as meaningfully exceeding expectations and showing strong double-digit growth across revenues, adjusted EBITDA and adjusted EPS.
Negative Updates
Acquisition-Related Considerations and Contingent Consideration
Rapid acquisition pace brings integration and cultural fit risk (management says culture is primary filter). Recent deals include contingent consideration of ~$242 million (earnouts), which represent future obligations tied to acquired company performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Financial Outperformance
Q2 2026 revenues of $9.6 billion; net income attributable to common stock of $451 million ($2.96 per diluted share); adjusted diluted EPS of $4.24; adjusted EBITDA of $1.1 billion — management described results as meaningfully exceeding expectations and showing strong double-digit growth across revenues, adjusted EBITDA and adjusted EPS.
Read all positive updates
Company Guidance
Quanta raised its 2026 outlook after a strong first half, now guiding full-year revenues of $39.3–$39.7 billion, adjusted EBITDA of $4.1–$4.2 billion, adjusted EPS of $16.45–$16.95 and free cash flow of $2.0–$2.5 billion; the revision is supported by a beat in Q2 (revenues $9.6B; net income $451M, GAAP EPS $2.96; adjusted EPS $4.24; adjusted EBITDA $1.1B, including ~$11M from Q2 acquisitions), a record backlog of $53B, and expected 2026 contribution from four recent acquisitions (approx. $1.24B upfront consideration plus ~$242M contingent) of $1.2–$1.4B of revenue and $120–$140M of adjusted EBITDA, while balance-sheet strength (debt/EBITDA 1.7 vs. 1.95 at YE2025 and total liquidity ~ $2.8B) and a historical free-cash conversion around 55% (with upside to 55–60%) underpin the guide.Quanta Services Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
72
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.78B | 28.35B | 23.67B | 20.88B | 17.07B | 12.98B |
| Gross Profit | 4.73B | 3.69B | 3.13B | 2.65B | 2.18B | 1.79B |
| EBITDA | 3.04B | 2.52B | 2.16B | 1.77B | 1.47B | 1.11B |
| Net Income | 1.34B | 1.03B | 904.82M | 744.69M | 491.19M | 485.96M |
Balance Sheet | ||||||
| Total Assets | 28.29B | 24.93B | 18.68B | 16.24B | 13.46B | 12.86B |
| Cash, Cash Equivalents and Short-Term Investments | 506.43M | 439.51M | 741.96M | 1.29B | 428.50M | 229.10M |
| Total Debt | 6.60B | 6.42B | 4.48B | 4.46B | 3.98B | 4.00B |
| Total Liabilities | 18.55B | 15.90B | 11.35B | 9.95B | 8.07B | 7.74B |
| Stockholders Equity | 9.64B | 8.94B | 7.32B | 6.27B | 5.38B | 5.11B |
Cash Flow | ||||||
| Free Cash Flow | 2.39B | 1.62B | 1.48B | 1.14B | 701.53M | 195.67M |
| Operating Cash Flow | 3.18B | 2.23B | 2.08B | 1.58B | 1.13B | 582.39M |
| Investing Cash Flow | -4.21B | -3.83B | -2.29B | -989.65M | -617.19M | -2.90B |
| Financing Cash Flow | 1.02B | 1.27B | -305.64M | 268.50M | -311.07M | 2.36B |
Quanta Services Technical Analysis
Positive
625.84
Price Trends
672.85
Positive
667.98
Positive
574.73
Positive
Market Momentum
8.10
Negative
62.71
Neutral
62.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWR, the sentiment is Positive. The current price of 625.84 is below the 20-day moving average (MA) of 657.17, below the 50-day MA of 672.85, and above the 200-day MA of 574.73, indicating a bullish trend. The MACD of 8.10 indicates Negative momentum. The RSI at 62.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PWR.
Quanta Services Risk Analysis
Quanta Services disclosed 47 risk factors in its most recent earnings report. Quanta Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quanta Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $19.17B | -66.75 | 10.11% | ― | 14.09% | -293.77% | |
80 Outperform | $36.89B | 26.96 | 38.42% | 0.19% | 18.92% | 33.51% | |
77 Outperform | $62.44B | 46.22 | 53.55% | 0.15% | 46.11% | 108.71% | |
73 Outperform | $103.10B | 81.71 | 14.86% | 0.07% | 26.30% | 34.94% | |
67 Neutral | $12.59B | 40.76 | 18.85% | ― | 29.76% | 33.40% | |
65 Neutral | $23.90B | 47.63 | 15.30% | ― | 23.46% | 86.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PWR
Quanta Services
696.15
317.20
83.71%
FIX
Comfort Systems
1,739.08
1,056.55
154.80%
DY
Dycom
414.70
145.13
53.84%
EME
EMCOR Group
824.53
218.63
36.08%
MTZ
MasTec
280.13
104.87
59.84%
APG
APi Group
44.72
9.35
26.43%
Quanta Services Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Quanta Services Completes $2 Billion Senior Notes Offering
Positive
Aug 6, 2026
On August 6, 2026, Quanta Services, Inc. completed a major debt offering, issuing $2 billion in senior unsecured notes across three tranches maturing in 2029, 2033 and 2036. The notes, carrying coupons between 4.850% and 5.550%, were sold through ...
Business Operations and StrategyPrivate Placements and Financing
Quanta Services Prices $2 Billion Senior Notes Offering
Positive
Aug 4, 2026
On August 3, 2026, Quanta Services priced a $2 billion underwritten public offering of senior notes, split into $500 million of 4.850% notes due 2029, $750 million of 5.300% notes due 2033 and $750 million of 5.550% notes due 2036. The notes were ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Quanta Services posts record Q2 results, boosts outlook
Positive
Jul 30, 2026
Quanta Services reported record second-quarter 2026 results on July 30, 2026, with revenue rising to $9.56 billion from $6.77 billion a year earlier and net income attributable to common stock climbing to $451.4 million, or $2.96 per diluted share...
Executive/Board ChangesStock BuybackShareholder Meetings
Quanta Services Adds Director and Launches $1 Billion Buyback
Positive
May 27, 2026
Quanta Services, Inc. held its 2026 Annual Meeting of Stockholders on May 21, 2026, where shareholders elected ten directors to one-year terms and approved an advisory resolution on executive compensation by a wide margin. Investors also ratified ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.