Will Quanta Be a 2026 Winner from Infrastructure Trends?

Rexielyn Diaz3 minute read
Reviewed by: Thomas Richmond
Last updated Jan 26, 2026

Key Stats for Quanta Services Stock

  • This week’s performance: -0.00%
  • 52-week range: $227 to $483
  • Valuation model target price: $524
  • Implied upside: 11.8% over 1.9 years

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What Happened?

Quanta Services, Inc. (PWR) stock traded essentially flat this week, closing near $468.76 on January 23, 2026, with minimal movement as investors consolidated recent gains. The consolidation came after a strong finish to 2025.

Specifically, Quanta announced significantly improved full-year revenue guidance on October 30, lifting its annual revenue forecast. That announcement reflected strong U.S. power demand and a robust contract pipeline.

The company also reported Q3 revenue of $7.6 billion, up 17.5% year-over-year and beating estimates, along with net income of $339 million.

In October 2025, the company won a substantial NiSource contract for a 3-gigawatt power generation and grid infrastructure project. This type of large-scale win demonstrates Quanta’s competitive positioning in the renewables and grid modernization space.

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Is Quanta Services Stock Undervalued?

Under the valuation model assumptions realized through December 2027, the stock is modeled using:

  • Revenue growth (CAGR): 14.4%
  • Operating margins: 6.6%
  • Exit P/E multiple: 32.9x

Based on these inputs, the model estimates a target price of $523.90, implying an 11.8% potential total return from the current share price of $468.76 and a 5.9% annualized return over the next 1.9 years.

These assumptions reflect Quanta’s demonstrated growth trajectory. However, they embed some moderation from its last three-year CAGR as the company scales.

The target multiple of 32.9x aligns with current market expectations given high-quality growth. The current LTM P/E of 58.43x and NTM P/E of 31.48x suggest the market is pricing in strong execution and sustained growth.

Realizing the model’s assumptions would require Quanta to execute on infrastructure contracts, convert project pipeline wins, and maintain pricing discipline amid competitive pressures.

Quanta’s growth depends on winning large utility and renewable energy infrastructure contracts. The company must also navigate supply chain costs, labor availability, and project execution timelines.

Margin expansion will hinge on operational leverage, as the business scales revenue while managing costs on fixed project scopes.

Maintaining disciplined leverage while funding potential acquisitions and returning capital to shareholders can support per-share earnings growth even if overall growth moderates from current levels.

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