Bull of the Day: Quanta Services (PWR)

Quanta Services, Inc. PWR recently reported a record second quarter of 2026 and raised full year guidance as demand remains strong for power generation for the AI Revolution. This Zacks Rank #1 (Strong Buy) is expected to grow earnings and sales in the double digits in 2026.  

Quanta Services provides specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. It has comprehensive services, including designing, installing, repairing, and maintaining, through two segments: Electric Infrastructure Solutions and Underground Utility & Infrastructure Solutions.

It has a market cap of $102.7 billion and operates in the United States, Canada, Australia and other global markets.

Quanta Services Beat Again in the Second Quarter of 2026

On July 30, 2026, Quanta Services reported its second quarter of 2026 earnings results and beat on the Zacks Consensus by $0.95. Earnings were $4.24 versus the Zacks Consensus of $3.29.

It was the eighth earnings surprise in a row. Quanta Services has only missed on earnings twice in the last five years: once in 2023 and again in 2024.

Revenue jumped to $9.56 billion from $6.77 billion in the year ago quarter. Electric Infrastructure Solutions revenue rose 44% while Underground Utility and Infrastructure Solutions increased 31% year-over-year.

The Electric segment had operating income margin of 11.5% while the Underground segment operating income margin came in at 9.1%. That exceeded Quanta Services’ expectations in the quarter.

Quanta Services had a record backlog of $53.4 billion at the end of Q2, which supports future growth.

Quanta Services Completes Four Acquisitions

During the second quarter and in the month of July 2026, Quanta Services completed four acquisitions that added approximately 7,400 employees and further strengthened the company’s electrical and mechanical workforce, its front-end services, and fabrication and manufacturing platforms.

It will allow the company to better serve customers’ critical infrastructure needs on utility, power, technology and large load, industrial and energy end markets.  

These acquisitions did not materially impact the second quarter financial results, but Quanta expects them to contribute approximately $1.2 billion to $1.4 billion in revenue for the full year 2026.

Quanta Raised Full Year Guidance

Given the record second quarter, acquisitions, and continued momentum in the business, it shouldn’t be a surprise that Quanta Services also raised full-year guidance.

It now expects revenue between $39.3 billion to $39.7 billion, a $4.55 billion increase at the midpoint from last quarter’s guidance.

Earnings are now expected to be between $16.45 and $16.95, up from the prior guidance last quarter of between $13.55 to $14.25.

Analysts Are Bullish on Quanta

Not surprisingly, given the fantastic earnings report and guide higher, the analysts have been revising their earnings estimates higher.

For 2026, seven estimates have been revised higher in the last week, pushing the Zacks Consensus up to $15.94 from $14.27. That Consensus is still under the company’s range of $16.45 to $16.95.

The Most Accurate Estimate for 2026, which is the most recent estimate, is calling for $16.64, however, which is within Quanta’s guidance range.

The Zacks Consensus of $15.94 is earnings growth of 48.3% as Quanta only made $10.75 last year.

The analysts are bullish on 2027 as well. Seven estimates have been revised higher for next year, pushing the Zacks Consensus up to $18.51. That’s another 16.1% earnings growth.

Here’s what it looks like on the Price, Consensus and Surprise chart.

Image Source: Zacks Investment Research

Shares of Quanta Services Sell Off in the Last Three Months: Buying Opportunity?

Shares of Quanta Services have been on a tear the last five years, up 623% to all-time highs.

But over the last three months, Quanta has pulled back. Shares are down 12.1% in the last 90 days.

Image Source: Zacks Investment Research

Is this pullback a buying opportunity?

Quanta Services is still an expensive stock. It trades with a forward price-to-earnings (P/E) ratio of 42.9. A P/E ratio is usually at 15 or under to be considered a value.

But investors are buying it for the growth. Sales are expected to jump 36.5% this year.

For investors looking for a high growth, AI infrastructure company that is executing, Quanta Services should be on your short list.

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This article originally published on Zacks Investment Research (zacks.com).

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