Key Stats for Quanta Services Stock
- 52-Week Range: $363.01 to $788.75
- Current Price: $722.31
- Street Mean Target: $770.04
- TIKR Target Price (Mid): ~$1,002
- TIKR Annualized IRR (Mid): ~8% per year
- Q2 2026 Revenue: $9.56B (up 41% YoY)
- Q2 2026 Adjusted EPS: $4.24 (up 71% YoY)
- Total Backlog: $53.4B (record)
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The Craft Workforce Behind America’s Power Grid Buildout
Most investors know the names of the companies building AI data centers. Far fewer know the name of the company wiring them. Quanta Services (PWR) is the largest specialty contractor in North America focused on infrastructure for the electric grid, power generation, and energy transition.
Its 85,000-person craft workforce designs, builds, and maintains the high-voltage transmission lines, substations, and distribution systems that move electricity across the country.
When a utility needs to upgrade a transmission corridor, or a hyperscaler needs to connect a new data center campus to the grid, Quanta is frequently the company doing the physical work.
The business model is built around self-performance, meaning Quanta’s own employees do the skilled labor rather than subcontracting it out.
That gives the company better control over project timelines and quality, and it creates a competitive moat that is genuinely hard to replicate. Training a lineman or high-voltage electrician takes years. Building a workforce of 85,000 takes decades.
The revenue chart shows what happens when that workforce meets a structural demand wave. From $13 billion in FY2021, revenue has grown every year to $28.5 billion in FY2025. Consensus estimates see this accelerating sharply, with revenue projected around $39.6 billion in FY2026, aligning with management’s raised guidance, and continuing toward $62.6 billion by FY2030.
The slope on the right side of this chart is not normal for a business of this size, and it reflects genuine demand rather than financial engineering.
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A Quarter That Beat Every Estimate, and a Backlog That Keeps Growing
Quanta’s Q2 2026 results were not a modest beat. Revenue came in at $9.56 billion, up 41% from $6.77 billion a year earlier, clearing the $8.53 billion consensus by more than 12%. Adjusted EPS of $4.24 beat the $3.29 estimate by 29%. Adjusted EBITDA reached $1.1 billion, and free cash flow came in at $0.9 billion, both record second-quarter figures.
The Electric segment generated $7.84 billion in revenue, up 44% year over year, driven by utility grid work and data center connections. Underground and Infrastructure added $1.72 billion, up 31%.
The backlog is where the forward story lives. Total backlog reached a record $53.4 billion at quarter-end, with remaining performance obligations of $33.6 billion representing contracted work not yet executed. Management raised full-year guidance across every metric: revenue to $39.3 to $39.7 billion, adjusted EPS to $16.45 to $16.95, and free cash flow to $2.0 to $2.5 billion.
CEO Duke Austin framed the opportunity directly: “We’re still in the early stages. The larger programs across the utility generation and technology load center markets are ahead of us, and we expect them to stack in the years to come.”
The operating income chart puts the earnings leverage in context. From $632 million in FY2021, operating income has grown without interruption to $1.587 billion in FY2025, more than doubling in four years, with every bar taller than the last.
That consistency is unusual for a project-based contractor, where timing can create volatility. It reflects long-duration contracts, a diversified customer base, and a workforce that compounds earnings as it scales.
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What the Valuation Model Says at $722
At around 39 times forward earnings, Quanta is priced for continued strong execution. The Street’s mean target of around $770 implies roughly 7% upside from current levels, a modest near-term return that reflects how much of the thesis is already priced in after a 64% YTD run.
The TIKR valuation model takes a longer view. Working from a mid-case assumption of around 13% annual revenue growth and net income margins expanding toward 7%, the model arrives at a target of around $1,002, implying a potential total return of around 39% over roughly four and a half years, or about 8% annualized.
The model bakes in modest P/E compression, meaning returns come from earnings growth rather than multiple expansion.
The scenario range runs from around 4% annualized in the low case to around 12% in the high case, reflecting that executing on a $53 billion backlog carries real operational risk even when demand is genuine.
Should You Buy PWR Stock?
Quanta Services is one of the clearest beneficiaries of the electricity infrastructure supercycle. A craft workforce of 85,000 people, long-term utility relationships, and a self-perform model that delivers execution certainty are durable competitive advantages.
The $53 billion backlog provides revenue visibility that most contractors would find hard to imagine, and four straight years of uninterrupted operating income growth suggest the model works across different project mixes and market conditions.
The valuation is the honest counterpoint. At 39 times forward earnings after a 64% YTD run, the stock is pricing in continued excellence. Any slippage in project execution, permitting delays on large transmission programs, or a slowdown in data center investment could pressure the multiple quickly.
Investors with a long horizon and conviction in the grid buildout thesis have a compelling case; those looking for near-term margin of safety will find the current price harder to justify.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
