DailyIQ
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Sector:IndustrialsAll sectors
Last updated 4 minutes ago

PWR·Quanta Services, Inc.

$.
-. (-.%)
After Hours
High
$645.00
Open
$633.69
Market Cap
94.93B
52W High
$788.75
Low
$625.22
P. Close
$648.82
P/E
85.93
52W Low
$363.01
Fwd P/E
191.24
DailyIQ Est.
$807.54
Technical Score (1D)
41
SELL
News Sentiment
67
BULLISH
Utility infrastructure spending is accelerating to meet rising electricity demand, and PWR’s recent capital allocation toward network upgrades positions it to capture that growth, suggesting a near‑term uptick in revenue as new transmission projects come online. This expansion is counterbalanced by a recent institutional sell‑off from Empirical Wealth Management, which cut its stake in PWR, signaling a reassessment of valuation and potential short‑term downward pressure as the market digests the shift. PWR’s underlying financials remain strong, with a 21.56% profit growth, 21.35% ROIC, and 129% cash conversion, indicating that the company can sustain higher capex while maintaining healthy margins, a factor that may temper the sell‑off’s impact. Market participants are now focused on the upcoming Q2 2026 earnings release scheduled for July 30, where analysts expect EPS of $3.29 and revenue of $8.53 B, both up 25–32% YoY, and where guidance on capex and margin outlook will be a key catalyst. Jefferies has lowered its price target to $784 from $857, citing margin compression and slower utility infrastructure growth, which could weigh on the stock ahead of earnings if the company fails to demonstrate robust margin protection. Concurrent with this, PWR is pivoting toward AI‑driven data center infrastructure, allocating capital to transformer manufacturing and offsite facilities, and reporting a record project backlog that could lift margins and diversify revenue in the medium term. The company’s recent addition to large‑cap growth and defensive indexes may increase passive inflows around rebalancing dates, potentially providing a buying catalyst if the stock remains under pressure from the Jefferies downgrade. Traders should monitor the earnings webcast for any forward‑looking guidance on capex plans, margin expectations, and the balance between utility and technology contracts, as these will clarify whether the recent institutional sell‑off reflects a short‑term mispricing or a longer‑term shift. In the next 1–10 trading days, watch for any revisions to the Jefferies outlook, changes in the index rebalancing schedule, and the actual earnings numbers, as they will determine whether PWR’s near‑term momentum is sustained or corrected.
Earnings Summary
Quanta Services, Inc. (PWR) is a leading provider of infrastructure solutions, delivering design, construction, and maintenance services for electric power, natural gas, renewable energy, and communications networks across North America and beyond; it operates within the industrials sector, specifically engineering and construction, positioning it as a key partner for utilities and renewable developers. In the most recent two quarters, Q4 2025 and Q1 2026, the company posted revenue of $7.84 B and $7.87 B respectively, reflecting modest year‑over‑year growth of roughly 2.7% and 0.4% compared to the prior two quarters of $7.63 B and $6.77 B; EPS, however, fell from $3.33 in Q3 2025 to $3.16 in Q4 2025 and further to $2.68 in Q1 2026, indicating a decline in profitability despite steady top‑line expansion, and the firm beat analyst estimates in five of the six quarters examined, with a single miss in Q1 2026. Historically, Quanta has demonstrated a consistent upward trajectory in revenue, rising from $6.55 B in Q4 2024 to $7.87 B in Q1 2026, while EPS growth accelerated through Q4 2025 before the recent dip, underscoring a pattern of strong earnings beats tempered by emerging margin pressures. Recent news highlights a 21.56% jump in profit and a 21.35% ROIC in the latest earnings, alongside a 129% cash conversion rate, signaling robust liquidity that can support new infrastructure projects; however, a Jefferies downgrade of the price target to $784 reflects concerns over margin compression and slower utility‑infrastructure expansion, and the company’s strategic pivot toward AI‑driven data‑center infrastructure may alter its revenue mix. Investors should watch for the upcoming Q2 2026 earnings release, paying particular attention to guidance on capital expenditures, margin dynamics, and the impact of federal infrastructure budgets, as these factors will clarify whether the company can sustain its growth trajectory amid potential macroeconomic headwinds.}}

EPS

EstBeatMiss
$1.41$1.96$2.50$3.04$3.58Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$3.30 - -
Q1'26$3.14$2.68-14.8%
Q4'25$3.05$3.16+3.5%
Q3'25$3.26$3.33+2.2%
Q2'25$2.45$2.48+1.1%
Q1'25$1.66$1.78+6.9%

Revenue

EstBeatMiss
$5.9B$6.7B$7.5B$8.3B$9.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$8.7B - -
Q1'26$8.1B$7.9B-3.3%
Q4'25$7.4B$7.8B+5.4%
Q3'25 - $7.6B -
Q2'25 - $6.8B -
Q1'25 - $6.2B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

PWR Stock Snapshot

PWR is currently trading at $648.13, giving Quanta Services, Inc. a market cap of 94.93B and a P/E ratio of 85.9. Today's range spans $625.22–$645.00, with shares opening at $633.69 and moving down $0.69 (0.1%) from the prior close. DailyIQ's technical score sits at 41/100 (HOLD) with a news sentiment reading of 67/100.

Over the past year PWR has traded between $363.01 and $788.75 - the current price is +78.5% off the 52-week low and -17.8% from the high. 38 analysts cover the stock with a Buy consensus and a mean 12-month target of $760.81 (range $400.00–$940.00), implying upside of +17.4%.

The technical picture for PWR is mixed - score 41/100, HOLD, with the stock at $648.13 (in the middle of its 52-week range) and sentiment bullish at 67/100. For a large-cap in Industrials with 94.93B in capitalization The current P/E ratio stands at 85.9., this is a fairly common pre-earnings or pre-macro-event posture. Annual range: $363.01–$788.75. Neutral signals at this size often resolve sharply once a catalyst provides directional conviction.

Portfolio construction in Industrials often uses large-cap names like PWR as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 41/100 (HOLD) at $648.13 (in the middle of its 52-week range) and bullish sentiment (67/100) frame the position as a catalyst play within the $363.01–$788.75 annual range rather than a directional bet.