Key Stats for Quanta Services Stock
- Past-6-Month Performance: 47%
- 52-Week Range: $227 to $566
- Valuation Model Target Price: $581
- Implied Upside: 5%
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What Happened?
Quanta Services stock has climbed about 47% over the past 6 months, recently trading near $553 per share and approaching its 52 week high of $566 as investors re-rated the business following stronger earnings visibility and accelerating demand tied to grid modernization and data center power buildouts.
The stock moved higher because Quanta delivered a clear Q4 earnings beat and raised its 2026 outlook, reinforcing confidence in sustained double digit growth.
The company reported adjusted EPS of $3.16 on $7.8 billion of fourth quarter revenue and lifted full year 2026 guidance to $12.65 to $13.35 in EPS on roughly $33.3 billion to $33.8 billion of revenue, signaling continued strength across utilities, power generation, and large load infrastructure.
On the earnings call, management highlighted record 2025 revenue of $28.5 billion, up 20% year over year, record adjusted EBITDA of $2.9 billion, record adjusted EPS of $10.75, record free cash flow of $1.7 billion, and a record $44 billion backlog.
CEO Duke Austin said “we delivered record results,” underscoring broad-based demand across end markets, while CFO Jayshree Desai guided to midpoint 2026 free cash flow of $1.8 billion, reinforcing balance sheet flexibility and funding capacity for continued investment.
Analyst and institutional activity added to the rally. UBS raised its price target to $646 from $518 and maintained a buy rating, implying about 16% upside from prior levels.
Tredje AP fonden increased its stake by 54% to 14,148 shares worth about $6 million, Bornite Capital Management boosted its position by 51% to 155,700 shares valued at roughly $65 million, Avestar Capital increased its holdings by 86%, and Harold Davidson & Associates raised its stake by 84%, while Mendel Money Management initiated a new position of 7,578 shares.
At the same time, Citigroup trimmed its holdings by 10%, Raiffeisen Bank International reduced its stake by 4%, Mcrae Capital cut 12%, Skandinaviska Enskilda Banken lowered 8%, and Cercano Management reduced exposure by 70%, reflecting active but sustained institutional engagement near record levels.
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Is Quanta Services Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 13%
- Operating Margins: 7%
- Exit P/E Multiple: 29x
Revenue has expanded from $13.0 billion in 2021 to $28.5 billion in 2025, and management’s 2026 revenue guidance of roughly $33.3 billion to $33.8 billion reflects continued double digit growth driven by grid reliability investment, large transmission programs, power generation expansion, and rising electricity demand from hyperscale data centers.
Margins remain modest given the engineering and construction model, but incremental expansion could come from higher mix exposure to electric transmission, vertical supply chain investments in transformers and breakers, and operating leverage as backlog converts into revenue.
Data center related work now represents roughly 10% of the business and is the fastest growing portion of backlog, positioning Quanta to benefit from multi year load growth trends.
Based on these inputs, the model estimates a target price of $581, implying about 5% total upside through 2026.
After a 47% rally in 6 months and with limited modeled upside, the stock appears slightly overvalued at current levels. Future returns from here will likely depend more on earnings outperformance or margin expansion than on additional valuation multiple gains.
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