Quanta Services (PWR)
NYSEIndustrialsEngineering & ConstructionSnapshot 2026-09-04
$624.41+0.70%
Close 2026-09-04 · 1-day change
NYSEIndustrialsEngineering & ConstructionSnapshot 2026-09-04
Warn: Primary pillar under pressure — Achieve EPS of $9.17-$9.87: FY26 EPS guidance $11.41-$11.92 vs target $9.17-$9.87.
Quanta Services aims to grow revenue to about $35 billion in 2026. EPS is guided to rise to about $9.5 per share. The company has strong backlog and raised its full-year outlook. It also started a $1 billion stock buyback program.
The stock is selling off sharply and trades at a high PE of 63. Revenue growth may slow from the current strong pace. The market expects 20% revenue growth, which is demanding. Any miss on guidance could hurt the shares.
The price is about 42% above our fair value near $467 and 40% below the Street median target. Analysts expect about 20% revenue growth. Our view is more cautious on valuation and growth sustainability.
Breaks if: Buyback program is canceled or materially reduced
Breaks if: EPS falls below $8.36 in FY26
Breaks if: Free cash flow falls below $1.3 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is positioned as a durable compounder with a focus on revenue and earnings growth. The current thesis state is intact, supported by strong recent financial results, although there are risks from sector dynamics.
The market appears to have priced in a justified valuation, with PWR trading at a premium compared to peers. The expectations gap is slightly negative, indicating that the market may not fully reflect the potential for continued growth.
Fundamentals are likely to remain strong, as management is focused on driving double-digit growth and has shown commitment through raised revenue guidance. However, there is a near-term risk of missing expectations, although the probability is relatively low.
The thesis hinges on sector performance, particularly the earnings and guidance of key competitors like FIX, EME, and MTZ. Positive momentum from these companies could support PWR, while negative trends may pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a higher revenue outlook of $34.7-$35.2 billion. This positive performance enhances the growth outlook for the company. No significant threats have emerged to counter this improvement.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $27.8 billion in FY26
Quanta aims to increase its revenue to a range of $34.7 billion to $35.2 billion for the fiscal year 2026.
Overall, PWR's outlook remains stable for the next 1 to 3 years, contingent on sector performance and management execution. Not investment advice.