Quanta Services (NYSE:PWR) Releases Quarterly Earnings Results, Beats Estimates By $0.93 EPS

Quanta Services (NYSE:PWR) announced its quarterly earnings results on Thursday. The construction company reported $4.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.31 by $0.93, FiscalAI reports. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The firm had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $8.61 billion. During the same period in the prior year, the company posted $2.48 earnings per share. The company’s quarterly revenue was up 41.1% on a year-over-year basis. Quanta Services updated its FY 2026 guidance to 16.450-16.950 EPS.

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

• Second-quarter results materially exceeded expectations, with $9.6 billion in revenue, $4.24 in adjusted EPS, $1.1 billion in adjusted EBITDA, and strong cash flow. Record backlog reached $53 billion, reflecting broad-based organic growth across segments and end markets.
• Quanta significantly raised its 2026 outlook to $39.3 billion–$39.7 billion in revenue, $4.1 billion–$4.2 billion in adjusted EBITDA, $16.45–$16.95 in adjusted EPS, and $2.0 billion–$2.5 billion in free cash flow. Management cited strong first-half execution, improved visibility, and contributions from recent acquisitions.
• The company completed four acquisitions—Phalcon, Enerfab, Percheron, and PSD—for approximately $1.24 billion upfront, adding capabilities in fabrication, engineering, generation, technology, and utility infrastructure. Management expects these deals to contribute $1.2 billion–$1.4 billion of 2026 revenue and $120 million–$140 million of adjusted EBITDA.
• Management sees additional margin opportunity from improved work mix, self-perform capabilities, training efficiencies, and acquisition synergies, while free-cash-flow conversion could reach the high end of its 55%–60% target range. However, larger transmission and generation projects are expected to produce lumpier bookings and may not meaningfully enter the field until the second half of 2027.
• Quanta said technology and data-center work represents roughly 15%–20% of the business and that its backlog includes projects with the necessary early notices to proceed, limiting—but not eliminating—exposure to permitting or state-level data-center pauses. Management also identified generation capacity and utility interconnection queues as potential industry bottlenecks, rather than craft labor oversupply.

Quanta Services Stock Performance

PWR traded up $97.97 during trading on Thursday, hitting $659.11. The company’s stock had a trading volume of 3,013,531 shares, compared to its average volume of 974,374. The business’s 50 day simple moving average is $681.24 and its 200-day simple moving average is $611.83. The firm has a market cap of $98.91 billion, a PE ratio of 90.41, a P/E/G ratio of 2.21 and a beta of 1.21. Quanta Services has a one year low of $363.01 and a one year high of $788.75. The company has a quick ratio of 1.09, a current ratio of 1.14 and a debt-to-equity ratio of 0.57.

Quanta Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Wednesday, July 1st. Quanta Services’s dividend payout ratio is currently 6.04%.

Quanta Services announced that its Board of Directors has approved a share buyback plan on Friday, May 22nd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the construction company to purchase up to 0.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Quanta Services News Summary

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

• Positive Sentiment: Q2 results significantly beat expectations. Quanta reported $9.56 billion in revenue, up 41.1% year over year, versus the $8.61 billion consensus estimate. Adjusted diluted EPS was $4.24, well above estimates near $3.30 and up from $2.48 a year earlier. Quanta Services Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance across key metrics. The company now expects adjusted EPS of $16.45-$16.95 and revenue of $39.3-$39.7 billion, above consensus forecasts of approximately $13.78 EPS and $35.0 billion in revenue. Quanta Projects 2026 Revenue as Backlog Supports Raised Outlook
• Positive Sentiment: Record backlog improves revenue visibility. Total backlog reached $53.4 billion, including $33.6 billion of remaining performance obligations, supporting management’s more confident outlook and signaling sustained demand for power and infrastructure projects.
• Positive Sentiment: Cash generation was robust. Quanta produced $1.1 billion in operating cash flow and $0.9 billion in free cash flow during the quarter, while adjusted EBITDA reached $1.1 billion. These results provide additional financial flexibility to fund growth and capital returns. Quanta Services Posts Record Q2 Results and Boosts Outlook
• Neutral Sentiment: Valuation remains demanding. Following the rally, PWR trades at roughly 90 times earnings based on the provided data, leaving the stock sensitive to any slowdown in backlog conversion, project execution, or future guidance.

Insider Buying and Selling at Quanta Services

In related news, CAO Paul Nobel sold 4,000 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $756.98, for a total value of $3,027,920.00. Following the transaction, the chief accounting officer directly owned 8,080 shares of the company’s stock, valued at approximately $6,116,398.40. This trade represents a 33.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Earl C. Jr. Austin sold 25,992 shares of Quanta Services stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $770.71, for a total value of $20,032,294.32. Following the transaction, the chief executive officer owned 16,508 shares in the company, valued at $12,722,880.68. This trade represents a 61.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 159,992 shares of company stock valued at $123,244,714 over the last 90 days. 0.60% of the stock is currently owned by company insiders.

Institutional Trading of Quanta Services

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Darwin Wealth Management LLC bought a new position in Quanta Services in the 2nd quarter worth $26,000. Meeder Asset Management Inc. boosted its stake in Quanta Services by 221.7% in the 4th quarter. Meeder Asset Management Inc. now owns 74 shares of the construction company’s stock worth $31,000 after purchasing an additional 51 shares during the period. Quarry LP purchased a new stake in Quanta Services during the 4th quarter valued at approximately $40,000. Kemnay Advisory Services Inc. purchased a new position in shares of Quanta Services in the fourth quarter worth $44,000. Finally, JPL Wealth Management LLC bought a new position in shares of Quanta Services during the third quarter worth $49,000. 90.49% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on PWR shares. CICC Research began coverage on shares of Quanta Services in a research note on Thursday, May 21st. They set an “outperform” rating and a $872.00 target price on the stock. Zacks Research cut shares of Quanta Services from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Citigroup raised their target price on shares of Quanta Services from $640.00 to $733.00 and gave the stock a “buy” rating in a report on Monday, April 27th. Oppenheimer upgraded shares of Quanta Services from a “market perform” rating to an “outperform” rating and set a $800.00 target price for the company in a research note on Thursday, May 28th. Finally, BNP Paribas Exane assumed coverage on Quanta Services in a report on Tuesday, April 14th. They set a “neutral” rating on the stock. Seventeen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, Quanta Services presently has a consensus rating of “Moderate Buy” and an average target price of $745.55.

Quanta Services Company Profile

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.