Quanta Services (NYSE:PWR) Posts Earnings Results, Beats Estimates By $0.14 EPS

Quanta Services (NYSE:PWR) released its quarterly earnings results on Thursday. The construction company reported $3.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.02 by $0.14, FiscalAI reports. The firm had revenue of $7.84 billion for the quarter, compared to analysts’ expectations of $7.38 billion. Quanta Services had a net margin of 3.74% and a return on equity of 18.74%. The firm’s revenue for the quarter was up 19.7% compared to the same quarter last year. During the same quarter last year, the company earned $2.94 EPS. Quanta Services updated its FY 2026 guidance to 12.650-13.350 EPS.

Here are the key takeaways from Quanta Services’ conference call:

• Record 2025 results: Quanta reported revenue of $28.5 billion (+20%), adjusted EBITDA of $2.9 billion, adjusted diluted EPS of $10.75 (+20%), record operating cash flow of $2.2 billion, free cash flow of $1.7 billion, and year-end backlog of $44 billion.
• Confident 2026 guidance: Management expects continued double‑digit growth in revenue, net income and adjusted EBITDA, the opportunity for >20% adjusted EPS growth, and roughly $1.8 billion free cash flow at the midpoint (including $250–$350 million of capex for vertical supply chain buildout).
• Strategic M&A and hiring: Quanta completed eight acquisitions in 2025 (including Dynamic Systems, Tri‑City Group, and Wilson Construction), added ~11,100 employees to reach ~69,500 headcount, funded ~$1.7 billion of Q4 deals with cash and stock while keeping leverage under 2x.
• Vertical supply‑chain investment: The company plans to invest approximately $500–$700 million over the next several years to build 345–765 kV transformers and breakers to de‑risk supply chains and create differentiated high‑voltage transmission solutions.
• Labor and margin pressures: Management flagged a tight craft labor market—especially in data center work—and expects ~6,000 organic hires in 2026, which could pressure electric infrastructure margins (midpoint guidance ~10.3%) despite ongoing efficiency and vertical integration initiatives.

Quanta Services Trading Up 4.2%

Quanta Services stock traded up $21.94 during trading on Thursday, reaching $541.25. 758,208 shares of the company were exchanged, compared to its average volume of 1,078,957. The stock’s 50 day simple moving average is $460.55 and its two-hundred day simple moving average is $431.77. The company has a market capitalization of $80.71 billion, a P/E ratio of 80.19, a PEG ratio of 2.54 and a beta of 1.15. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.34 and a quick ratio of 1.30. Quanta Services has a 52-week low of $227.08 and a 52-week high of $546.91.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Cantor Fitzgerald started coverage on shares of Quanta Services in a research report on Friday, January 23rd. They issued an “overweight” rating and a $520.00 target price on the stock. JPMorgan Chase & Co. upgraded Quanta Services from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $457.00 to $515.00 in a report on Monday, December 8th. The Goldman Sachs Group set a $495.00 price objective on Quanta Services in a research note on Monday, November 24th. Sanford C. Bernstein raised their target price on Quanta Services from $428.00 to $471.00 and gave the company a “market perform” rating in a research report on Monday, February 9th. Finally, Evercore lifted their price target on Quanta Services from $410.00 to $480.00 and gave the stock an “outperform” rating in a research note on Friday, October 31st. Thirteen research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Quanta Services has a consensus rating of “Moderate Buy” and a consensus price target of $464.15.

Trending Headlines about Quanta Services

Here are the key news stories impacting Quanta Services this week:

• Positive Sentiment: Q4 beat — Adjusted EPS of $3.16 vs. consensus $3.00 and revenue of $7.84B (up ~19.7% YoY), signaling strong demand and execution. Quanta Services (PWR) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Raised FY‑2026 guidance — company now sees EPS $12.65–$13.35 (above consensus) and revenue ~$33.3B–$33.8B, implying double‑digit revenue growth and >20% EPS growth opportunity. QUANTA SERVICES REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
• Positive Sentiment: Record backlog and strong cash generation — year-end total backlog ~$44.0B and RPO ~$23.8B, plus robust free cash flow and adjusted EBITDA, supporting revenue visibility and capital flexibility. Quanta Services Posts Record 2025 Results, Backlog Surges
• Positive Sentiment: Investor narrative shifting toward electric-infrastructure and AI/data‑center exposure — analysts and headlines highlight Quanta as a beneficiary of grid buildout and data‑center demand, supporting multiple expansion expectations. This S&P 500 AI Data Center Play Eyes New Highs On Earnings; 20% Profit Growth Expected
• Neutral Sentiment: Analyst sentiment: the consensus rating is around “Moderate Buy,” reflecting broadly positive but measured broker views. Quanta Services, Inc. (NYSE:PWR) Given Average Rating of “Moderate Buy” by Brokerages
• Negative Sentiment: Execution risks remain — analysts warn margin pressure and project-timing variability can swing quarterly results despite strong backlog; investors should watch margin trends and backlog conversion. Quanta is Set to Report Q4 Earnings: Here’s What Investors Must Know

Institutional Investors Weigh In On Quanta Services

Hedge funds have recently modified their holdings of the company. Select Equity Group L.P. raised its stake in Quanta Services by 69.3% during the second quarter. Select Equity Group L.P. now owns 1,017,123 shares of the construction company’s stock worth $384,554,000 after purchasing an additional 416,395 shares during the period. Wellington Management Group LLP increased its holdings in shares of Quanta Services by 226.2% during the 4th quarter. Wellington Management Group LLP now owns 338,771 shares of the construction company’s stock worth $142,982,000 after buying an additional 234,928 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Quanta Services by 18.8% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,207,209 shares of the construction company’s stock valued at $509,515,000 after buying an additional 191,135 shares during the period. State Street Corp lifted its holdings in Quanta Services by 2.1% in the fourth quarter. State Street Corp now owns 6,206,761 shares of the construction company’s stock valued at $2,619,626,000 after acquiring an additional 126,014 shares during the last quarter. Finally, Bank of America Corp DE grew its position in Quanta Services by 4.9% in the second quarter. Bank of America Corp DE now owns 2,150,718 shares of the construction company’s stock worth $813,144,000 after acquiring an additional 99,782 shares during the period. Hedge funds and other institutional investors own 90.49% of the company’s stock.

About Quanta Services

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.