Quanta Services raises 2026 revenue forecast to $41.6 billion
Key Facts
On October 29, Quanta Services raised its revenue forecast for the year ending December 31, 2026, to a range of $41.3 billion to $41.6 billion, an increase of $1.95 billion at the midpoint compared with its second-quarter guidance. The announcement came with the release of third-quarter results, which showed revenue rising to $12.01 billion from $7.63 billion in the same period of 2025. The company also reported adjusted diluted earnings per share of $6.06, compared with $3.33 a year earlier. CEO Duke Austin said the company was raising its financial outlook for the year across metrics. He added that management expects additional strength in the fourth quarter.
The new range marks an upward revision from the estimate published in the second-quarter guidance, when the company forecast annual revenue of between $39.3 billion and $39.7 billion. In its October update, Quanta said the midpoint of its forecast had increased by $1.95 billion from that guidance. Management linked the decision to strong performance year to date and expected additional strength in the fourth quarter. It said the forecast takes into account the execution of its backlog and expected opportunities during the rest of 2026. This reflects the annual estimate’s dependence on continued project execution during the remaining period of the year.
Total backlog reached a record $63.7 billion in the third-quarter results, while remaining performance obligations reached $41.8 billion. The two figures provide a picture of the volume of work recorded by the company and its obligations tied to execution. Revenue for the nine months ended September 30 was $29.45 billion, compared with $20.64 billion in the first nine months of 2025. These results fall within the period management used to assess year-to-date performance. Converting backlog into revenue remains tied to project execution schedules.
In its operating commentary, the company forecast revenue growth of between 25% and 30% in its electric power networks and gas utilities business in 2026. Quanta attributed this growth to rising load and infrastructure upgrades, including interconnection and substation work. The estimate places the networks and utilities business among the operating factors the company cited in presenting its forecast. In its second-quarter guidance, the company had warned that weather, regulation, permitting and supply chains could affect project timing and execution. It also cited uncertainty related to inflation, interest rates and the possibility of a recession.
On earnings, Quanta expects adjusted diluted earnings per share of between $17.90 and $18.30 in 2026. This range is part of the annual outlook the company raised on October 29, alongside its updated revenue forecast. As for the stock’s movement, EL7’s price records showed it between the November 5 and 6 closes, but the available verified facts do not establish that the forecast revision caused the move. The update follows the company’s report of quarterly revenue growth and a record backlog. Fourth-quarter results and the execution of work and expected opportunities during the rest of 2026 remain among the factors the market will monitor in assessing whether the forecast is achieved.