Quanta (NYSE:PWR) beats expectations in strong Q3 2026, stock soars

Infrastructure solutions provider Quanta (NYSE:PWR) reported Q3 2026 results topping the market’s revenue expectations, with revenue up 57.4% year on year to $12.01 billion. The company’s full-year revenue guidance of $41.45 billion at the midpoint came in 4.7% above analysts’ consensus estimates. Its non-GAAP profit of $6.06 per share was 20.5% above analysts’ consensus estimates.

For more on Quanta, read our free full research report.

"Quanta delivered another exceptional quarter, with third-quarter results that again exceeded expectations. Revenue, adjusted EBITDA and adjusted diluted earnings per share all achieved strong double-digit growth, cash flow was robust and total backlog reached a record $63.7 billion. These results demonstrate the power of our solutions-based operating model, as well as the execution certainty our self-perform capabilities deliver for customers every day. Given this outperformance and the expected incremental strength in the fourth quarter, we are again significantly increasing our full-year 2026 financial expectations across all metrics," said Duke Austin, President and Chief Executive Officer of Quanta Services.

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Quanta’s revenue grew at a strong 25.5% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

Long-term growth matters most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. Quanta’s annualized revenue growth of 27.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

Quanta also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Quanta’s backlog reached $63.73 billion in the latest quarter and averaged 29.9% year-on-year growth over the last two years. Backlog growth outpaced revenue growth, indicating the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Quanta’s products and services but raises concerns about capacity constraints.

This quarter, Quanta reported strong year-on-year revenue growth of 57.4%, and its $12.01 billion of revenue beat Wall Street’s consensus estimates by 8.8%.

Looking ahead, sell-side analysts expect revenue to grow 18.8% over the next 12 months, according to S&P, a deceleration versus the last two years. Still, this projection is strong given its scale and indicates the market sees success for its products and services.

Operating margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products and most importantly, keeping them relevant through research and development.

Quanta was profitable over the last five years but held back by its large cost base. Its average operating margin of 5.8% was weak for an industrials business. That outcome is unsurprising given its low gross margin baseline.

On the positive side, Quanta’s operating margin rose by 2.3 percentage points over the last five years, as its revenue growth gave it operating leverage.

This quarter, Quanta generated an operating margin of 8.5%, up 1.8 percentage points year on year. The increase was a positive sign. Operating margin rose more than gross margin, indicating greater efficiency with expenses such as marketing, R&D and administrative overhead.

Earnings per share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.

Quanta’s EPS grew at a 28.6% compounded annual growth rate over the last five years, higher than its 25.5% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.

A closer look at Quanta’s earnings quality helps explain the drivers of its performance. As mentioned earlier, Quanta’s operating margin expanded by 2.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

As with revenue, analyzing EPS over a more recent period can provide insight into an emerging theme or development for the business.

For Quanta, its two-year annual EPS growth of 41.4% was higher than its five-year trend. That acceleration is a positive sign, particularly given the already high base.

In Q3, Quanta reported adjusted EPS of $6.06, up from $3.33 in the same quarter last year. This comfortably beat analysts’ consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects Quanta’s full-year EPS to grow 19.4% from $16.14 to $19.28, according to S&P.

Key takeaways from Quanta’s Q3 results

Quanta delivered a solid quarter, with both EBITDA and revenue beating consensus estimates by wide margins. Shares surged 5.1% to $639 immediately after the results.

Quanta reported solid earnings, but one quarter doesn’t necessarily make the stock a buy. To assess whether it is a good investment, consider valuation, business quality and the latest earnings. For more on Quanta, read our full research report here (it’s free).