Quanta Services Revenue Reaches $12.01 Billion, Lifting 2026 Earnings Outlook
Key Facts
Quanta Services reported consolidated revenue of $12.01 billion in the third quarter of 2026, up from $7.63 billion in the same period a year earlier, and its chief executive said results again exceeded expectations. Net income attributable to common stock was $694.9 million, or $4.55 per diluted share, compared with $339.4 million and $2.24 per share a year earlier. Adjusted diluted earnings per share also rose to $6.06 from $3.33. The company described revenue as a quarterly record, while management linked its updated annual outlook to performance to date and additional strength expected in the fourth quarter. The company did not specify how much results exceeded analysts’ expectations.
Growth extended through the first nine months of the year, with revenue rising to $29.45 billion from $20.64 billion in the corresponding period of 2025. Net income attributable to common stock was $1.37 billion, versus $712.9 million, and diluted earnings per share increased to $8.97 from $4.72. On an adjusted basis, diluted earnings per share were $12.98 for the nine months, compared with $7.59 a year earlier. These comparisons show earnings improvement extending beyond the quarter alone. Chief Executive Duke Austin said growth spanned revenue, adjusted EBITDA and adjusted earnings per share, without providing additional figures for those measures for the nine months in that statement.
The Electric segment was the largest source of quarterly revenue, generating $9.80 billion, or 81.6% of the total, compared with a 80.9% share in the third quarter of 2025. The Underground and Infrastructure segment generated $2.22 billion, or 18.4% of revenue. Electric segment operating income was $1.238 billion, with a margin of 12.6%, while the other segment posted operating income of $207.952 million and a margin of 9.4%. The figures show the two segments’ differing contributions to revenue and operating income during the quarter. The distribution puts most of the company’s revenue in the Electric segment, while Underground and Infrastructure accounts for a smaller share of activity.
The company reported record backlog of $63.7 billion, alongside remaining performance obligations of $41.8 billion. The figures published in the available results did not provide a breakdown linking these items to revenue for a specific quarter. Net cash provided by operating activities was $1.5 billion in the third quarter, while free cash flow reached $1.2 billion; Quanta defines free cash flow as net cash provided by operating activities less net capital expenditures. For 2026, the company expects net cash provided by operating activities of $3.45 billion to $4.00 billion and free cash flow of $2.50 billion to $3.00 billion. These estimates place cash flow achieved in the quarter within the range of the annual cash flow outlook announced by the company.
Quanta raised its 2026 diluted earnings per share outlook to a range of $12.57–$12.97 and its adjusted diluted earnings per share outlook to $17.90–$18.30. It also expects EBITDA of $3.99 billion to $4.09 billion and adjusted EBITDA of $4.40 billion to $4.49 billion. Austin said “outperformance and additional strength expected in the fourth quarter” prompted the company to raise its annual financial outlook across all metrics. He added that the company is advancing ahead of the multiyear growth targets it presented at its 2026 Investor Day. Management sees an opportunity for strong double-digit growth in adjusted earnings per share in 2027, supported by continued backlog growth.
The company announced the completion of two acquisitions in September and October to enhance its capabilities in front-end services, manufacturing and supply chains. Total consideration, net of cash acquired, was about $245 million, comprising about $96 million in cash paid or payable and about $149 million in Quanta shares. The company does not expect the acquisitions to contribute materially to 2026 results. It said, however, that weather, regulation, permitting, supply-chain challenges and other factors had affected, and could in the future affect, its results through project timing and execution. A webcast and conference call on third-quarter results was scheduled for October 29, 2026, at 9:00 a.m. Eastern time, with an audio replay to be available shortly after the webcast.
In trading in the days before the results announcement, PWR shares closed at $552.44 on October 22, then at $546.43 on October 23, $563.93 on October 26, $578.83 on October 27 and $606.89 on October 28. These are daily closing prices before the quarterly results were released on October 29 and do not reflect trading after the announcement. The recent backdrop to the outlook increase dates to an update the company issued in June, when Quanta tied its outlook to rising orders for power networks and AI infrastructure. In October, the company combined higher annual estimates with a signal of continued backlog growth. Project timing remains among the factors the company said could affect its financial results.