10-Q · April 30, 2026
Quanta Services (PWR) delivered robust Q1 2026 results, posting revenues of $7.87 billion and a diluted EPS of $1.45, both surpassing analyst expectations. The company highlighted significant demand across its segments,…
Earnings analysis · 10-Q
PWR earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Quanta delivered record third-quarter revenue of $12.015 billion, 9.4% above the $10.981 billion consensus estimate, while operating margin improved to 8.5% from 7.2% sequentially and 6.6% year over year. GAAP diluted…
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Quanta delivered record third-quarter revenue of $12.015 billion, 9.4% above the $10.981 billion consensus estimate, while operating margin improved to 8.5% from 7.2% sequentially and 6.6% year over year. GAAP diluted EPS of $4.55 missed the $4.96 estimate, although adjusted diluted EPS was $6.06. Management raised full-year 2026 revenue guidance to $41.3 billion-$41.6 billion and GAAP diluted EPS guidance to $12.57-$12.97, but acquisition integration, equity issuance and financing exposure remain risks. The filing states that there were no material changes to previously disclosed risk factors.
Reported figures
- Earnings per share
- $4.55
- Operating margin
- 8.5%
What stood out
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Record revenue beat estimates
Third-quarter revenue was $12.015 billion, exceeding the $10.981 billion consensus estimate by approximately $1.034 billion, or 9.4%. Revenue also increased from $9.56 billion in the prior quarter.
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Adjusted EPS strong, GAAP EPS missed
GAAP diluted EPS was $4.55 versus the $4.96 consensus estimate, a $0.41, or 8.3%, shortfall. Adjusted diluted EPS was $6.06, indicating a $1.51 difference between adjusted and GAAP diluted EPS.
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Operating margin expanded materially
Operating margin expanded to 8.5%, up from 7.2% in the prior quarter and 6.6% in the year-earlier quarter, representing sequential and year-over-year improvements of 130 and 190 basis points, respectively.
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Full-year outlook raised
Management raised full-year 2026 revenue expectations to $41.3 billion-$41.6 billion and GAAP diluted EPS expectations to $12.57-$12.97. Adjusted diluted EPS guidance is $17.90-$18.30.
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Acquisitions expanded the platform
The company completed five business acquisitions during the nine months ended September 30, 2026. Three third-quarter acquisitions included 299,176 shares valued at $180.3 million as acquisition consideration.
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Repurchase capacity remains available
The company retained $1.00 billion of authorization under its 2026 stock repurchase program as of September 30, 2026, although it reported no open-market repurchases during the quarter.
What to watch
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Acquisition integration and controls
Quanta acquired five businesses during the nine months ended September 30, 2026 and stated that it is still integrating them into its internal-control process. Acquisitions can increase execution and integration complexity, particularly because the acquired businesses may be excluded from internal-control assessment for up to one year.
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Equity-funded acquisition dilution
Third-quarter acquisition consideration included 299,176 newly issued shares valued at $180.3 million, while a further acquisition on October 14, 2026 included 17,791 shares valued at $10.9 million. Continued equity-funded acquisitions may dilute existing shareholders.
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Interest-rate and financing exposure
The company issued senior notes bearing interest rates of 4.850% due 2029, 5.300% due 2033 and 5.550% due 2036. The filing identifies unfavorable interest-rate changes as a primary market-risk exposure, increasing financing sensitivity.
Management's outlook
Management significantly increased full-year 2026 expectations. Adjusted diluted EPS guidance is $17.90-$18.30 and free cash flow guidance is $2.50-$3.00 billion. The filing does not state a prior numerical outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.