Quanta Services (NYSE: PWR) raises outlook after third-quarter revenue jumps 57.4%

What happened

Quanta Services, Inc. (NYSE: PWR) raised its full-year 2026 outlook on every metric after third-quarter revenue rose 57.4% to $12.01 billion. A year earlier, third-quarter revenue was $7.63 billion.

Net income attributable to common stock more than doubled to $694.9 million, or $4.55 per diluted share, from $339.4 million, or $2.24. Adjusted diluted earnings per share rose to $6.06 from $3.33.

Total backlog reached $63.7 billion, which the earnings release calls a record. Chief Executive Officer Duke Austin said Quanta is ahead of the multi-year growth targets it set at its 2026 Investor Day. He said demand is broadening across utility, power generation, industrial and technology customers.

Key numbers

Metric	Latest	Change	Source
Third-quarter revenue	$12.01 billion	from $7.63 billion, +57.4%	SEC 8-K, Exhibit 99.1 (change calculated from filing)
Third-quarter net income attributable to common stock	$694.9 million	from $339.4 million, +104.7%	SEC 8-K, Exhibit 99.1 (change calculated from filing)
Third-quarter adjusted diluted EPS	$6.06	from $3.33, +82.0%	SEC 8-K, Exhibit 99.1 (change calculated from filing)
Total backlog (Sept. 30)	$63.7 billion	from $39.17 billion, +62.7%	SEC 8-K, Exhibit 99.1 (change calculated from filing)
Consolidated operating margin, third quarter	8.5%	from 6.8%, +1.7 percentage points	SEC 8-K, Exhibit 99.1 (change calculated from filing)
Full-year 2026 adjusted diluted EPS guidance	$17.90 to $18.30		SEC 8-K, Exhibit 99.1

Read more: Quanta Services (PWR) company research

Margins and cash flow

Profit grew faster than sales. Consolidated operating margin was 8.5% against 6.8% a year earlier, a gain of 1.7 percentage points. The Electric segment produced $9.80 billion of revenue, 81.6% of the quarter's total. Its operating margin was 12.6% versus 11.4%.

Underground and Infrastructure had $2.22 billion of revenue. Its margin rose to 9.4% from 8.4%. Cash flow from operations was $1.5 billion in the quarter and free cash flow was $1.2 billion.

The nine-month figures show the same pattern. Revenue was $29.45 billion against $20.64 billion in the first nine months of 2025. Adjusted diluted EPS was $12.98 against $7.59.

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What the growth includes

Not all of the growth is organic. Quanta completed five acquisitions in the first nine months of 2026 and eight during 2025. The results include the acquired businesses from their acquisition dates.

Adjusted EPS also leaves out items such as non-cash stock-based compensation, amortization of intangible assets and acquisition and integration costs. That sets it apart from GAAP earnings per share.

Backlog, guidance and the balance sheet

Backlog is 62.7% above its level a year earlier, when it was $39.17 billion. Of the current total, $38.45 billion is expected to be realized within 12 months. Remaining performance obligations, mostly firm orders under fixed price contracts, are $41.8 billion. The rest is estimated orders under master service agreements, including expected renewals, and certain non-fixed price contracts.

For the year ending Dec. 31, 2026, Quanta now expects revenue of $41.3 billion to $41.6 billion and adjusted EBITDA of $4.40 billion to $4.49 billion. It expects net cash from operating activities of $3.45 billion to $4.00 billion. Austin also sees a chance for strong double-digit adjusted EPS growth in 2027, backed by continued backlog growth.

The balance sheet grew with the business. Cash was $2.32 billion at Sept. 30 versus $439.5 million at Dec. 31, 2025. Long-term debt net of current maturities was $6.35 billion versus $5.23 billion. Quanta issued $2.00 billion of senior notes in August and prepaid the full $618.8 million term loan on Sept. 1. In July it raised revolving commitments to $2.98 billion from $2.80 billion and extended their maturity to July 31, 2031.

Accounts receivable rose to $10.14 billion from $6.85 billion at year-end. Contract liabilities rose to $5.54 billion from $3.26 billion.

Why it matters

OptimistFi has argued that Quanta compounds value if electrification and energy-infrastructure demand keeps flowing to the few contractors with the labor, safety record and scale to run large programs. Backlog and margins rising together in the same quarter strengthen that view.

Two acquisitions completed in September and October add a Houston energy services provider with about 320 employees. They also add a Fort Worth maker of steel monopoles and lighting structures with about 270 employees. They cost about $245 million in all. Quanta does not expect them to add much to 2026 results.

The caveat is conversion. Management says weather, regulatory, permitting and supply chain problems have affected and may affect project timing and results. The filing also lists reliance on fixed price contracts, and possible losses on them, among its risks.

What's next

Quanta's next quarterly report, covering the final quarter of the year ending Dec. 31, 2026, is the first check on the raised ranges. Results inside them would support management's view that it is ahead of its Investor Day targets.

A slowdown in backlog growth, or schedule delays on the portion due within 12 months, would weaken that view. Management's 2027 comment, double-digit adjusted EPS growth, is the next benchmark the backlog has to support.

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