Quanta Services (PWR)
The desk's stance
On our research list, not on the slate.
What the company does
The biggest US grid-construction contractor — the crews that string transmission lines, build substations, and wire datacenter campuses, sitting on a record $53B backlog.
Why it matters: The AI power gap is a construction problem as much as a generation problem: every new gigawatt still needs someone to physically connect it to the load.
In short: Specialty electrical grid infrastructure contractor. Category: Electric Grid & AI Infrastructure. Sector: Industrials, Engineering & Construction.
G-Street Value and Score
G-Street Value: $614.37, computed Oct 18, 2026 (confidence: medium).
How we got there: 50% analyst leg $704.73 (street consensus, after 8% optimism discount) + 50% GainStreet factor value $524 (26.39× fwd EPS anchored to industrials multiples). 4 analyst targets have no linked source and are shown but not counted; this value will not open a position until they are sourced.
G-Street Score: 64 out of 100 (Medium).
- Top-line growth & guidance: 27 of 32
- Margin power: 3 of 15
- Revenue visibility & quality: 9 of 11
- Profitability & balance sheet: 16 of 24
- Capital allocation & governance: 3 of 6
- Valuation, sentiment & momentum: 6 of 12
Our current thesis
Updated Oct 17, 2026
The thesis
- Record $33.55B RPO and $53.4B backlog provide exceptional multi-year revenue visibility.
- Dominant market share capturing massive utility grid modernization and AI data center interconnections.
- Accelerating beat-and-raise momentum with FY26 adjusted EPS guidance lifted to $16.45–$16.95.
Risks
- Thin 4.0% net margins leave earnings vulnerable to project cost overruns.
- Premium 31.8x forward P/E leaves little room for transmission permitting delays.
- Peer GEV delivers significantly wider 23% margins and higher operational leverage.
What we're watching
- Q3 2026 earnings print on October 29, targeting consensus $10.88B revenue.
- Data center interconnect operating margins tracking toward management's 10% to 12% target.
- Chart consolidation and institutional price support around the $620–$640 level.
Latest
Quanta trades at $631.86 (31.8x forward P/E), consolidating ~20% below its 52-week high ($788.75) ahead of Q3 2026 earnings on October 29. Q2 2026 demonstrated accelerating growth with revenue rising 41.1% YoY to $9.56B and adjusted EPS beating consensus at $4.24, prompting an upgraded FY26 revenue outlook of $39.3B–$39.7B. RPO reached $33.55B within a record $53.4B backlog, propelled by utility transmission buildouts and data center interconnection demands.
Key numbers
As of Oct 16, 2026: market cap $95.0B · revenue growth +41.1% year over year · gross margin 15.5% · net margin 4.0% · forward P/E 31.8 · next earnings Oct 29, 2026.
On the Gainz Lab maps
Who it does business with
- Quanta Services supplies NextEra Energy — Transmission & renewables EPC (about $3.0B a year). Quanta crews build the transmission lines and renewable interconnects behind NextEra’s pipeline — regulated utilities are its biggest customers.