We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Quanta Strategically Monetize the AI Power Boom Across Utilities?
Read MoreHide Full Article
Key Takeaways
Quanta ended 2025 with record $28.5B revenues and $43.98B backlog, up 27.3% Y/Y.
AI-driven data center demand is boosting utility spending across generation and grid infrastructure.
PWR guides 2026 revenues of $33.25B-$33.75B, signaling continued double-digit growth.
Quanta Services, Inc. (PWR - Free Report) appears increasingly well-positioned to capitalize on the AI-driven power demand surge, particularly as utilities and data center developers accelerate infrastructure investments.
The company closed 2025 on a strong note, delivering record revenues of $28.5 billion and building a massive backlog of $43.98 billion (up 27.3% year over year), reflecting robust demand across electric infrastructure markets. The backlog strength, especially within its Electric Infrastructure Solutions segment, highlights growing utility spending tied to grid modernization, electrification and large-load facilities like data centers.
AI-driven data center expansion is emerging as a key catalyst. PWR is directly benefiting from rising electricity demand, with its “total solutions” platform spanning power generation, transmission, substations and load center infrastructure. This integrated model enables the company to capture value across the entire power ecosystem, rather than just isolated project scopes. Notably, Quanta has already secured large-scale opportunities, including a multi-gigawatt power generation and grid infrastructure project tied to a data center campus. Such wins reinforce its role as a critical partner for utilities navigating the convergence of AI, electrification and grid expansion.
Looking ahead, management expects 2026 revenues of $33.25-$33.75 billion, signaling sustained double-digit growth year over year. While risks like permitting delays and supply-chain constraints remain, Quanta’s scale, integrated offerings and execution track record position it to effectively monetize the multi-year AI power boom across utilities.
Quanta’s AI Edge: Grid Power King or Just Early Lead?
Quanta is well-positioned to benefit from rising AI-driven infrastructure demand, alongside big names including MasTec, Inc. (MTZ - Free Report) and AECOM (ACM - Free Report) , but their roles and competitive advantages differ meaningfully.
MasTec participates in AI demand through power delivery, communications and renewable energy projects. It benefits from data center-driven grid expansion and broadband needs, but its exposure is more diversified and includes higher-risk segments like pipelines and renewables, which can introduce earnings volatility despite strong backlog growth.
Conversely, AECOM plays a more indirect role, focusing on design, consulting and program management for infrastructure projects. While AI-driven demand supports its transportation, energy and environmental backlog, its competitive strength lies in high-margin advisory services and global reach rather than execution of power infrastructure itself.
Overall, Quanta leads in monetizing AI power demand, MasTec offers diversified infrastructure exposure and AECOM captures value through asset-light, advisory-led participation.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has climbed 33% in the past three months, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 42.81, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 have trended upward in the past 30 days, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 19.4% and 18.5%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Can Quanta Strategically Monetize the AI Power Boom Across Utilities?
Key Takeaways
Quanta Services, Inc. (PWR - Free Report) appears increasingly well-positioned to capitalize on the AI-driven power demand surge, particularly as utilities and data center developers accelerate infrastructure investments.
The company closed 2025 on a strong note, delivering record revenues of $28.5 billion and building a massive backlog of $43.98 billion (up 27.3% year over year), reflecting robust demand across electric infrastructure markets. The backlog strength, especially within its Electric Infrastructure Solutions segment, highlights growing utility spending tied to grid modernization, electrification and large-load facilities like data centers.
AI-driven data center expansion is emerging as a key catalyst. PWR is directly benefiting from rising electricity demand, with its “total solutions” platform spanning power generation, transmission, substations and load center infrastructure. This integrated model enables the company to capture value across the entire power ecosystem, rather than just isolated project scopes. Notably, Quanta has already secured large-scale opportunities, including a multi-gigawatt power generation and grid infrastructure project tied to a data center campus. Such wins reinforce its role as a critical partner for utilities navigating the convergence of AI, electrification and grid expansion.
Looking ahead, management expects 2026 revenues of $33.25-$33.75 billion, signaling sustained double-digit growth year over year. While risks like permitting delays and supply-chain constraints remain, Quanta’s scale, integrated offerings and execution track record position it to effectively monetize the multi-year AI power boom across utilities.
Quanta’s AI Edge: Grid Power King or Just Early Lead?
Quanta is well-positioned to benefit from rising AI-driven infrastructure demand, alongside big names including MasTec, Inc. (MTZ - Free Report) and AECOM (ACM - Free Report) , but their roles and competitive advantages differ meaningfully.
MasTec participates in AI demand through power delivery, communications and renewable energy projects. It benefits from data center-driven grid expansion and broadband needs, but its exposure is more diversified and includes higher-risk segments like pipelines and renewables, which can introduce earnings volatility despite strong backlog growth.
Conversely, AECOM plays a more indirect role, focusing on design, consulting and program management for infrastructure projects. While AI-driven demand supports its transportation, energy and environmental backlog, its competitive strength lies in high-margin advisory services and global reach rather than execution of power infrastructure itself.
Overall, Quanta leads in monetizing AI power demand, MasTec offers diversified infrastructure exposure and AECOM captures value through asset-light, advisory-led participation.
PWR Stock’s Price Performance & Valuation Trend
PWR stock has climbed 33% in the past three months, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 42.81, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PWR
PWR’s earnings estimates for 2026 and 2027 have trended upward in the past 30 days, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 19.4% and 18.5%, respectively.
Image Source: Zacks Investment Research
Quanta stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.