Quanta Services, Inc. (PWR) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 18, 2027 — estimated from last year’s reporting date.

Consensus is $4.44 EPS for Dec 2026 across 10 estimates, ranging $3.97 to $4.80.

PWR Sep 2026

Reported Oct 29, 2026 · before the open

: 22.01%

: $4.68
: $5.71
: —
: $12.01B

Reported results

: $12.01B; from $7.63B
: 16.71%; from 15.94%
: $1.03B; from $517.22M
: 8.54%; from 6.78%
: $694.86M; from $339.42M
: $4.55; from $2.24

Highlights

Quarterly scale and earnings: Q3 revenue rose 57.4% year over year to $12.01B, operating income nearly doubled to $1.03B, and GAAP diluted EPS increased to $4.55 from $2.24.
EPS basis needs reconciliation: The supplied expectations data lists $5.71 reported EPS versus $4.68 consensus, a 22.01% beat. Quanta’s release and 10-Q report $4.55 GAAP diluted EPS and $6.06 adjusted diluted EPS; they do not reconcile the $5.71 figure.
Electric led growth: Electric revenue increased 58.8% to $9.80B and segment operating margin expanded to 12.6% from 11.4%, with higher demand and improved execution cited as drivers.
Backlog reached records: Total backlog was $63.73B and remaining performance obligations were $41.75B at September 30, up 44.9% and 75.7%, respectively, from year-end 2025.
2026 expectations increased: Quanta raised full-year adjusted EPS guidance to $17.90–$18.30 and expects GAAP diluted EPS of $12.57–$12.97; management also said it sees potential for strong double-digit adjusted EPS growth in 2027.
Cash generation strengthened: Q3 operating cash flow was $1.45B and free cash flow was $1.20B. For the first nine months, operating cash flow reached $2.94B, up 167% year over year.
Underground also improved: Underground and Infrastructure revenue grew 51.8% to $2.22B, while segment operating margin increased to 9.4% from 8.4%, helped by mechanical-services acquisition revenue and better fixed-cost absorption.
Acquisitions and financing: Quanta completed five acquisitions in the first nine months and announced two more for approximately $245M. It also issued $2.00B of senior notes and repaid its $618.8M term loan.

Analysis

Quanta delivered a record-scale quarter, with revenue of $12.01B, up 57.4% year over year and 25.7% from Q2 FY2026. GAAP operating income rose 98.5% to $1.03B, and diluted EPS was $4.55 versus $2.24 a year earlier and $2.96 in Q2. Adjusted diluted EPS was $6.06, up from $3.33. The supplied expectations feed reports $5.71 EPS against $4.68 consensus, a 22.01% beat, but that reported figure is not reconciled to the company’s published $4.55 GAAP or $6.06 adjusted EPS, so the comparison depends on an unclear earnings basis.

The print was defined by broad infrastructure demand, margin improvement and a sharply stronger forward workload. Both segments grew, with Electric the larger contributor; operating margin expanded at the consolidated level to 8.5% from 6.8% a year ago. Backlog reached $63.73B, while remaining performance obligations rose to $41.75B. Quanta raised its 2026 financial expectations, including adjusted EPS guidance of $17.90–$18.30, and pointed to potential double-digit adjusted EPS growth in 2027. Cash conversion was also strong: quarterly free cash flow was $1.20B, and nine-month operating cash flow increased 167% year over year to $2.94B.

Revenue and margins

The step-up in scale translated into stronger operating leverage. Revenue increased $4.38B year over year, while operating income rose $509.3M; consolidated operating margin widened 1.7 percentage points to 8.5%. Gross margin increased to 16.7% from 15.9%. SG&A and amortization rose with headcount, acquisitions and compensation, but those costs did not prevent margin expansion. Results also advanced sequentially from Q2 FY2026, when revenue was $9.56B and operating income was $694.8M.

GAAP earnings: Net income attributable to common stock was $694.9M, up 104.7% year over year; diluted EPS was $4.55 versus $2.24.
Adjusted earnings: Adjusted EBITDA increased to $1.45B from $858.3M, while adjusted diluted EPS rose to $6.06 from $3.33.
EPS data discrepancy: The provided expectations record gives $5.71 reported EPS and $4.68 consensus, but the release and filing present $4.55 GAAP and $6.06 adjusted EPS. The supplied materials do not explain the $5.71 figure.

Segment performance

Electric: Revenue rose 58.8% to $9.80B, representing 81.6% of consolidated sales. Segment operating income increased 75.9% to $1.24B and margin improved to 12.6% from 11.4%. Quanta cited increased demand and improved execution across electric and power-generation work; acquired businesses contributed approximately $1.22B of quarterly revenue.
Underground and Infrastructure: Revenue increased 51.8% to $2.22B. Operating income rose 70.2% to $208.0M and margin expanded to 9.4% from 8.4%. Higher revenue from acquired mechanical-services businesses supported fixed-cost absorption; acquisitions contributed approximately $335M of quarterly revenue.
Corporate costs: Corporate and non-allocated costs increased by $110.7M to $419.5M, partly reflecting acquisition-related intangible amortization and compensation. Segment growth and margin gains more than offset this increase.

Backlog and demand

The workload indicators reinforced the growth outlook: total backlog reached $63.73B at September 30, up 44.9% from December 31, 2025, and remaining performance obligations were $41.75B, up 75.7%. Of RPO, $27.96B was estimated for recognition within 12 months. Electric backlog was $51.89B and Underground and Infrastructure backlog was $11.85B. The increase reflected new awards and greater volume with existing customers, with acquisitions contributing to a lesser extent. Backlog includes estimated MSA and non-fixed-price work, and the company notes customers are generally not committed to specific volumes under MSAs.

Higher 2026 outlook

Following the quarter’s outperformance and expected incremental strength in Q4, Quanta raised full-year 2026 expectations across its financial metrics. Adjusted diluted EPS guidance is now $17.90–$18.30, with GAAP diluted EPS of $12.57–$12.97 and adjusted EBITDA of $4.40B–$4.49B. The company’s free-cash-flow range is $2.50B–$3.00B. Management also said it sees an opportunity for strong double-digit adjusted EPS growth in 2027, supported by further backlog growth. Execution and project timing remain relevant uncertainties, including weather, permitting, regulation and supply-chain constraints.

Cash and acquisitions

Cash generation: Q3 operating cash flow was $1.45B and free cash flow was $1.20B, compared with $563.5M and $438.1M, respectively, a year earlier. Nine-month operating cash flow reached $2.94B versus $1.10B; the filing reports DSO of 50 days, compared with 66 days a year earlier.
Acquisition activity: Five businesses were acquired in the first nine months of 2026. In September and October, Quanta completed two additional acquisitions for approximately $245M in aggregate consideration, split between about $96M cash and $149M stock; these are not expected to materially affect 2026 results.
Funding and liquidity: Quanta issued $2.00B of senior notes in August and repaid the $618.8M term-loan balance on September 1. Cash and available credit commitments totaled $5.21B at quarter-end.

Quanta Services, Inc.

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