Quanta Services, Inc. (PWR Quick QuotePWR - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, before the opening bell. The quarter is expected to reflect continued strength in utility transmission and distribution investments, rising demand for power generation and data center infrastructure, and broad-based growth across Quanta’s end markets.

In the last reported quarter, Quanta reported adjusted earnings of $4.24 per share, up 71% from $2.48 in the year-ago quarter and ahead of the Zacks Consensus Estimate of $3.29 by 28.9%. Revenues increased 41.1% year over year to $9.56 billion and topped the consensus mark of $8.53 billion by 12.1%.

Quanta’s earnings topped the consensus mark in each of the trailing four quarters. The average surprise over this period is 17.01%, as shown in the chart below.

Image Source: Zacks Investment Research

How Are Estimates Placed for PWR Stock?

The Zacks Consensus Estimate for third-quarter earnings per share (EPS) has increased to $5.01 from $5.00 over the past 30 days. The estimate indicates 50.5% growth from the year-ago reported figure. The consensus mark for revenues is pegged at $10.99 billion, indicating a 44% year-over-year increase.

Image Source: Zacks Investment Research

For 2026, Quanta is expected to register a 38.4% increase in revenues from a year ago. Its EPS is expected to grow 55.4% from a year ago. Below is what to expect from PWR stock.

Image Source: Zacks Investment Research

Factors Likely to Shape Quanta’s Q3 Results

Broad-Based Infrastructure Demand to Drive Quanta’s Revenues

Third-quarter revenues are likely to have benefited from continued strength across utility transmission and distribution, power generation, renewables and technology-related infrastructure. Quanta is expected to gain from sustained utility capital spending, rising electricity demand and investments in infrastructure supporting data centers and manufacturing. The company’s broad service capabilities and growing engagement with customers on multiyear capital programs are also likely to have supported revenue growth across its business segments.

The Electric Infrastructure Solutions segment (which contributed 82% to second-quarter 2026 revenues) is expected to have remained the primary revenue driver, supported by utility transmission and distribution investments, grid expansion, generation interconnections and data center-related infrastructure. The Zacks Consensus Estimate for the segment revenues is currently pegged at $8.8 billion, indicating growth from $6.17 billion a year ago.

The Underground Utility & Infrastructure Solutions segment (which contributed 18% to second-quarter 2026 revenues) is also likely to have benefited from improving opportunities in pipeline infrastructure, generation-related work and continued project execution. Quanta’s integrated service offerings and ability to deploy resources across different end markets are expected to have supported activity in the segment. The Zacks Consensus Estimate for the segment revenues is currently pegged at $2.27 billion, indicating growth from $1.46 billion a year ago.

Strong Backlog and Project Visibility to Support Growth

Quanta’s strong backlog and expanding customer commitments are expected to have supported revenue visibility in the to-be-reported quarter. Continued demand across utility and technology markets, along with ongoing discussions around large infrastructure programs, is likely to have supported further project awards. The company expects its backlog to have remained at record levels in the third quarter, reflecting sustained demand across the end markets. For the third quarter, the consensus estimate suggests that backlog will increase 40.5% year over year to $55.04 billion.

Large transmission corridors, generation projects and technology-related infrastructure are expected to have provided additional growth opportunities as these programs advance. However, the conversion of larger projects into backlog and active construction is likely to have occurred gradually, with significant field activity from major transmission and generation programs expected to have built over time. This multiyear project pipeline is expected to have supported Quanta’s longer-term revenue growth and provided greater visibility into future workloads.

Project Mix & Acquisition Synergies to Support Quanta’s Earnings

Quanta’s earnings are expected to have benefited from revenue growth, improved resource utilization and favorable project mix across its business segments. The company’s integrated service model and self-perform capabilities are likely to have supported execution efficiency, while synergies from recent acquisitions are expected to have contributed to financial performance. Recent acquisitions are also expected to have expanded Quanta’s capabilities across electrical, mechanical, civil and fabrication services, supporting its ability to serve customers across utility and technology-related markets.

Margins are expected to have benefited from opportunities for improved project mix and operating efficiencies, with the company anticipating further margin improvement in the second half of 2026. However, weather conditions and project delays remain potential risks to execution. The company’s workforce training investments and ability to deploy skilled labor across segments are expected to remain important to productivity and profitability as activity increases. Together, these factors are likely to have supported earnings growth in the to-be-reported quarter.

What the Zacks Model Unveils for Quanta Stock

Our proven model predicts an earnings beat for Quanta for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is exactly the case here.

Earnings ESP: PWR has an Earnings ESP of +2.66%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

PWR Stock’s Price Performance

PWR stock has gained 33.6% year to date (“YTD”), outperforming the Zacks Building Products - Heavy Construction industry, the Construction sector and the S&P 500 Index.

PWR Stock’s Price Performance (YTD)

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Quanta competes with Sterling Infrastructure, Inc. (STRL Quick QuoteSTRL - Free Report) , MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) and EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) across utility infrastructure, power transmission and data center construction. Year to date, Sterling has gained 17.8% and EMCOR has risen 8.9%, while MasTec has declined 54.9%.

PWR Stock’s Valuation Trend

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 29.8X, as evidenced by the chart below.

PWR’s Valuation vs Industry (P/E F12M)

Image Source: Zacks Investment Research

Quanta trades at a significant premium to the infrastructure peers, reflecting investors' confidence in its market leadership, record backlog and long-term growth prospects. By comparison, Sterling trades at 14.56X, MasTec at 14.3X and EMCOR at 18.26X forward earnings.

Conclusion

Quanta is expected to have benefited from sustained utility spending, rising electricity demand and investments in data center infrastructure. Its strong backlog and acquisition contributions are likely to have supported revenue growth, while favorable project mix and operating efficiencies might have aided earnings. However, project execution risks and the stock’s premium valuation relative to peers remain key considerations. Investors may consider holding the stock while monitoring the company’s earnings performance and growth prospects.