Quanta Services Stock Jumped 63% This Year: Does the Math Still Support Buying In?

Key Takeaways for Quanta Services Stock as of June 2026

• Analysts rate Quanta Services stock 21 buys, 7 holds, 1 underperform, 1 sell, and 2 with no opinion, with a mean target of $761, implying around 7% upside from the current price of $714.
• TIKR’s mid-case model values Quanta Services at $1,331 by December 2030, implying around 86% total return, or roughly 8% annualized.
• Quanta Services stock looks fairly valued at current levels, with EBIT guided to grow 49% year over year in the June 2026 quarter as transformer and fabrication capacity investments begin converting backlog into operating profit.
• Quanta raised its 2026 adjusted EPS outlook to a range of $13.55 to $14.25 after first-quarter EBITDA of $686 million beat consensus of $572 million by 20%.

Quanta’s backlog headlines get the attention, but the real test of this $2.4 trillion TAM story is whether fixed-cost investment turns into operating profit. See exactly how EBIT margins are tracking against guidance on TIKR for free →

Quanta Services Stock Jumps on a Record $48.5 Billion Backlog and a Raised 2026 Outlook

Quanta Services (PWR) builds and maintains the physical infrastructure that utilities, power generators, and large data center operators depend on, from high-voltage transmission lines to underground utility networks.

PWR Stock Q1 2026 Earnings in USD (TIKR)

The Houston-based contractor posted first-quarter 2026 revenue of $7.9 billion, up from $6.23 billion a year earlier, and raised its full-year revenue guidance to a range of $34.7 billion to $35.2 billion. Backlog climbed to a record $48.5 billion, up from prior levels, giving management what it called its strongest visibility into 2027 spending in years.

That growth showed up directly in profitability. Adjusted EBITDA rose to $686 million against a consensus estimate of $572 million, while adjusted EPS reached $2.68 versus a Street estimate of $2.06. Quanta responded by lifting its full-year adjusted EPS outlook to a range of $13.55 to $14.25, above the prior Street average of $13.09.

What drove the beat was less about any single mega-project and more about breadth. CEO Earl “Duke” Austin told analysts on the Q1 earnings call that backlog growth was broad-based across segments, noting that even the largest contributor, a 765-kilovolt transmission award with a major utility customer, “was less than 25% of the increase.” He added that the company expects backlog to keep rising on a year-over-year basis even if individual quarters vary.

Behind that backlog sits a capital commitment the market has been slower to price. Quanta is investing $500 million to $700 million to double power transformer manufacturing capacity and expanding fabrication and logistics facilities to roughly 6.7 million square feet, both aimed at converting demand from data centers and utilities into delivered work faster than peers can replicate. Management also disclosed that its technology and large-load segment is now tracking toward 100% to 120% revenue growth in 2026, up from a prior 70% to 110% range, reflecting both organic demand and recent acquisitions.

The quarter wasn’t without nuance. Free cash flow guidance stayed unchanged despite the earnings beat, with CFO Jayshree Desai noting the company simply wanted more visibility before revising a range set just one quarter earlier. Oppenheimer subsequently upgraded the stock to outperform with an $800 price target, citing utility and technology 

See how Quanta’s transformer and fabrication capex is converting into operating margin before the next print on TIKR for free →

Wall Street Is Broadly Bullish on Quanta Services Stock but Sees Limited Near-Term Upside

Street Analysts Target for PWR Stock (TIKR)

Wall Street’s consensus rating on Quanta Services stock is a buy, with 21 analysts at buy or strong buy, 7 at hold, 1 underperform, and 1 sell.

The mean price target sits at $761, implying around 7% upside from the current price of $714, while the median target of $800 points to slightly more room. That median target aligns with Oppenheimer’s recent upgrade to outperform, which set an $800 price target and cited utility and technology spending alongside upside from power, pipeline, and transmission projects.

With 23 of 31 brokerages now rating the stock buy or higher, the Street has largely caught up to the demand story even as the stock has already returned 72% year to date.

Wall Street Expects Quanta Services Stock’s EBIT to Grow 49% in the June Quarter

PWR Stock EBIT and EBIT Margins Actuals & Estimates (TIKR)

Quanta Services reported EBIT of $340 million in the March 2026 quarter, a margin of 4.3% that was actually below the year-ago period due to seasonal mix. The Street’s near-term forward estimate calls for EBIT of $551 million in the June 2026 quarter, a 49% year-over-year increase and a margin expansion to 6.4%, the first real test of whether the company’s fabrication and transformer capacity investments are starting to convert backlog into operating profit rather than just revenue.

Looking further out, consensus models EBIT climbing to $720 million by the December 2026 quarter, with margins reaching 7%, before EBIT growth decelerates to a still-healthy 15% year-over-year pace by June 2027 as the comparison base gets tougher.

That deceleration matters because it is exactly where the bull case and the more cautious case diverge: bulls argue that 765-kilovolt transmission work and gas generation contracts will keep stacking revenue at higher incremental margins, while skeptics note that EBIT margin actually compressed slightly from 8% in March 2025 to 4% in March 2026 on a trailing basis.

The open question for Quanta Services stock is whether the back-half 2026 EBIT acceleration management has guided to actually materializes, or whether labor cost inflation and gas-fired generation execution risk erode the margin gains the Street is currently modeling.

Quanta Services Stock Lags MasTec and MYR Group on EBIT Growth Despite Leading on Backlog

PWR Stock EBIT Growth vs Peers (TIKR)

Quanta Services posted EBIT growth of 42% in the March 2026 quarter, well behind MasTec’s (MTZ) 293% and MYR Group’s (MYRG) 89% over the same period. That gap reflects easier comparisons for the smaller peers rather than weaker fundamentals at Quanta, since both MasTec and MYR Group are working off a much smaller EBIT base.

Looking ahead, the gap narrows sharply. The Street models Quanta’s EBIT growth at 55% for the June 2026 quarter, ahead of MYR Group’s 39% and MasTec’s 14%, before all three converge into the low 20% to 30% range by the end of 2026.

The competitive implication is that Quanta’s scale, not its growth rate, is what separates it from peers. As MasTec and MYR Group’s EBIT comparisons get tougher into 2027, Quanta Services stock stands out as the only one of the three still expected to grow EBIT at all by March 2027.

TIKR’s $1,331 Target on Quanta Services Stock Holds, but Only if EBIT Conversion Follows Backlog

TIKR’s mid-case model values Quanta Services at around $1,331 by December 2030, implying around 86% total return from the current price of $714, or roughly 8% annualized over the next 4.5 years.

PWR Stock Valuation Model Results (TIKR)

That annualized return sits below the stock’s trailing five-year IRR of 51%, suggesting the market has already priced in much of the easy upside from Quanta’s data center and transmission buildout, leaving the next leg of returns more dependent on execution than on narrative.

The target is reachable if the EBIT growth path embedded in Street estimates, a jump from 4% margins in March 2026 to 7% by December, actually shows up as the $700 million transformer investment and 6.7 million square feet of fabrication capacity come online through 2026 and 2027.

See the full breakdown of how TIKR’s mid-case model gets to a $1,331 target on PWR stock, including the assumptions behind the 86% return, on TIKR for free →

Should You Invest in Quanta Services, Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up Quanta Services, Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

You can build a free watchlist to track Quanta Services, Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

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