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 full research report.
Quanta (PWR) Q3 2026 highlights:
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Revenue $12.01 billion vs S&P analysts’ consensus estimates of $11.04 billion (57.4% year-on-year growth, 8.8% beat)
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Adjusted EPS $6.06 vs S&P analysts’ consensus estimates of $5.03 (20.5% beat)
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Adjusted EBITDA $1.45 billion vs analysts’ consensus estimates of $1.23 billion (12.1% margin, 17.9% beat)
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Revenue guidance The company lifted its revenue guidance for the full year to $41.45 billion at the midpoint from $39.5 billion, a 4.9% increase
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Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $18.10 at the midpoint, an 8.4% increase
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EBITDA guidance $4.45 billion at the midpoint for the full year, above analysts’ consensus estimates of $4.15 billion
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Operating margin 8.5%, up from 6.8% in the same quarter last year
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Free cash flow margin 9.9%, up from 5.7% in the same quarter last year
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Backlog $63.73 billion at quarter end, up 62.6% year on year
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Market capitalization $91.24 billion
“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 year-on-year revenue growth
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.
Quanta trailing 12-month operating margin (GAAP)
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.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
