GET DAILY SIGNALSQuanta Services (PWR) Delivers Record Q3 2026 Results With Strong Growth Across Key Metrics
Key Takeaways
- Quanta Services reported record third-quarter 2026 revenue of $12.01 billion, up 57% from $7.63 billion a year earlier.
- Adjusted diluted earnings per share (EPS, or profit allocated to each share) came in at $6.06, up 82% year over year and well above consensus estimates.
- GAAP diluted EPS of $4.55 more than doubled from $2.24 in the prior-year quarter.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $1.4 billion, up 69%, with the adjusted EBITDA margin expanding to 12.1%.
- Record backlog of roughly $64 billion and a raised full-year 2026 outlook signal sustained momentum heading into 2027.
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Why These Results Matter
Quanta Services stands as North America's largest specialty contractor focused on energy and communications infrastructure. The company sits at the intersection of grid modernization, renewable energy expansion, and rising electricity needs driven by data centers. Its quarterly performance often serves as an indicator of capital spending trends among utilities and large technology firms. After a solid first half, I was interested to see whether the company could maintain double-digit growth while improving margins and cash generation. The third-quarter numbers met expectations on multiple fronts, and the decision to raise full-year guidance adds confidence that the longer-term build-out of power infrastructure remains on track.
Breaking Down the Reported Numbers
Quanta Services delivered record consolidated revenue of $12.01 billion for the third quarter of 2026. That figure represents a 57% increase from $7.63 billion in the same quarter last year and exceeded the consensus estimate of roughly $10.9 billion. Adjusted diluted EPS reached $6.06, marking an 82% rise from $3.33 a year earlier and surpassing analyst forecasts that clustered near $4.95 to $5.02. GAAP diluted EPS of $4.55 more than doubled from $2.24, while net income attributable to common stock climbed to $694.9 million.
Profitability metrics also improved, with adjusted EBITDA hitting $1.4 billion, a 69% year-over-year gain, and the adjusted EBITDA margin widening to 12.1%. The quarter produced record operating cash flow of $1.5 billion and record free cash flow of $1.2 billion. Backlog reached a new high of approximately $64 billion, reflecting a sequential increase of roughly $10 billion, with gains across the company's primary markets. I also checked this using Tickeron’s AI Screener to compare the results against industry peers.
Market Reaction and Broader Sentiment
Shares of Quanta Services (PWR) rose after the release, driven by the earnings beat, better-than-expected margins, and the upward revision to full-year guidance. Investor sentiment strengthened on the back of the record backlog and management comments indicating the company is tracking ahead of the multiyear targets shared at its 2026 Investor Day. The results underscored ongoing robust demand for grid infrastructure and power generation, even as supply chain issues for items such as transformers and poles remain a point to monitor.
Updated Guidance and Factors to Watch
Management lifted its full-year 2026 outlook across all major metrics. Revenue is now expected in the range of $41.3 billion to $41.6 billion, adjusted EBITDA between $4.40 billion and $4.49 billion, and adjusted EPS between $17.90 and $18.30. Free cash flow is projected at $2.5 billion to $3.0 billion, which would mark another annual record.
Looking forward, I am watching how quickly large-scale 765-kilovolt transmission projects and major generation work get booked, as these opportunities are not yet reflected in backlog and could support further growth. Data center demand continues to be a significant driver, and the company is increasing revenue capture per location. Supply chain availability for transformers and poles, labor capacity, and margin trends will remain important as Quanta targets continued double-digit adjusted EPS growth into 2027.
Using AI Tools for Deeper Analysis
One resource I turn to when evaluating infrastructure and industrial names like this is Tickeron’s AI Screener. It allows me to apply technical patterns, fundamentals, and AI-driven signals across thousands of stocks and ETFs, helping refine watchlists and spot comparable opportunities more efficiently than manual review alone. The tool supports customizable filters by industry, market cap, volatility, and performance metrics, which can be useful when assessing whether a reported quarter aligns with broader sector trends.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PWR sees MACD Histogram crosses below signal line
PWR saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 15, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In 34 of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 68%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PWR as a result. In 48 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
PWR moved below its 50-day moving average on October 15, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PWR crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PWR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PWR's RSI Oscillator exited the oversold zone, 13 of 16 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 36 of 46 cases where PWR's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 78%.
Following a +7.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where PWR advanced for three days, in 258 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
PWR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 250 of 362 cases where PWR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 18 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 46 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 56 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. PWR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.467) is normal, around the industry mean (15.756). P/E Ratio (68.421) is within average values for comparable stocks, (169.208). Projected Growth (PEG Ratio) (1.443) is also within normal values, averaging (3.522). Dividend Yield (0.001) settles around the average of (0.183) among similar stocks. P/S Ratio (2.860) is also within normal values, averaging (2.960).
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General Information
a provider of specialty contracting services, offering infrastructure solutions to the electric power, natural gas and oil pipeline and telecommunications industries
Industry EngineeringConstruction
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