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Quanta Services
(NYSE:PWR)
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Rating:72Outperform
Price Target:
$755.00
▲(20.64% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial execution (scaling revenue, improving margins, and robust free cash flow) and a bullish earnings update (raised guidance and record backlog). The main offsets are expensive valuation (high P/E with a very small dividend) and only mixed technical momentum (negative MACD and elevated Stoch despite a constructive longer-term trend).
Positive Factors
Scaled revenue & improving margins
Consistent, material revenue scaling and rising margins demonstrate durable demand and effective integration of acquired capabilities. Larger scale improves fixed-cost absorption and pricing leverage; sustained FCF increases capacity to invest in operations, prefabrication and workforce, improving long-term execution resilience.
Negative Factors
Thin construction margins
Relatively thin E&C margins leave limited buffer for cost inflation, subcontractor issues or project overruns. In a project-based business this amplifies earnings sensitivity to execution errors and input-cost shocks, increasing the risk of meaningful profit volatility absent sustained productivity gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Scaled revenue & improving margins
Consistent, material revenue scaling and rising margins demonstrate durable demand and effective integration of acquired capabilities. Larger scale improves fixed-cost absorption and pricing leverage; sustained FCF increases capacity to invest in operations, prefabrication and workforce, improving long-term execution resilience.
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
$100.33B
Dividend Yield0.06%
Average Volume (3M)1.20M
Price to Earnings (P/E)75.5
Beta (1Y)1.27
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
$806.31Price Target Upside28.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)15.66
Revenue Forecast (FY)$38.38B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: strong Q1 operating and financial performance, record backlog, raised 2026 guidance, and major strategic investments to derisk supply chains and expand capacity. Executives emphasized durable, programmatic demand across transmission, generation and data-center-related markets and reiterated aggressive long-term EPS growth targets. Manageable near-term concerns include unchanged free cash flow guidance, supply-chain and permitting/interconnection risks, a cautious stance on certain combined-cycle risks, and pockets of slower performance (notably Canada). Overall, the positive drivers — robust results, backlog, raised guidance and targeted capacity investments — materially outweigh the highlighted challenges.Positive Updates
Strong Quarterly Financial Results
Q1 2026 revenue of $7.9 billion; net income attributable to common stock of $221 million ($1.45 per diluted share); adjusted diluted EPS of $2.68; adjusted EBITDA of $686 million. Management characterized results as "robust double-digit growth" in revenues, adjusted EBITDA and adjusted EPS.
Negative Updates
Free Cash Flow Guidance Left Unchanged
Despite a strong Q1 and raised earnings guidance, management left 2026 free cash flow guidance unchanged from the prior range, citing early stage of year; CFO noted greater confidence in being at the higher end but did not formally update the range.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Financial Results
Q1 2026 revenue of $7.9 billion; net income attributable to common stock of $221 million ($1.45 per diluted share); adjusted diluted EPS of $2.68; adjusted EBITDA of $686 million. Management characterized results as "robust double-digit growth" in revenues, adjusted EBITDA and adjusted EPS.
Read all positive updates
Company Guidance
Quanta raised its 2026 outlook after a strong Q1 (revenues $7.9B; net income $221M or $1.45 per diluted share; adjusted diluted EPS $2.68; adjusted EBITDA $686M), with record backlog of $48.5B and book‑to‑bill ~1.6x; full‑year guidance was increased to revenues $34.7–$35.2B, adjusted EBITDA $3.49–$3.65B and adjusted EPS $13.55–$14.25. Management reiterated a medium‑term objective of 15–20% adjusted EPS growth and an ambition to more than double earnings power by 2030, will maintain an investment‑grade balance sheet with target leverage of 1.5–2.0x, plans $500–$700M of investment to double transformer capacity and expand off‑site manufacturing to roughly 6.7M sq ft, and left free cash‑flow guidance unchanged (previously given as a ~$500M range) while expressing greater confidence toward the high end.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
679.96
Positive
658.06
Positive
563.71
Positive
Market Momentum
-6.05
Negative
57.41
Neutral
90.03
Negative
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 643.60, below the 50-day MA of 679.96, and above the 200-day MA of 563.71, indicating a bullish trend. The MACD of -6.05 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 90.03 is Negative, 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 | $35.17B | 24.83 | 38.42% | 0.19% | 18.92% | 33.51% | |
77 Outperform | $60.88B | 42.50 | 53.55% | 0.15% | 46.11% | 108.71% | |
72 Outperform | $100.33B | 75.49 | 14.86% | 0.07% | 26.30% | 34.94% | |
67 Neutral | $12.04B | 37.77 | 18.85% | ― | 29.76% | 33.40% | |
66 Neutral | $17.31B | -59.22 | 10.11% | ― | 14.09% | -293.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $21.13B | 41.43 | 14.53% | ― | 23.46% | 86.29% |
* Industrials Sector Average
PWR
Quanta Services
693.00
305.83
78.99%
FIX
Comfort Systems
1,775.86
1,086.96
157.78%
DY
Dycom
415.08
144.18
53.22%
EME
EMCOR Group
819.88
198.84
32.02%
MTZ
MasTec
271.71
88.60
48.39%
APG
APi Group
41.54
6.83
19.68%
Quanta Services Corporate Events
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.