PWR AI Stock Analysis – Buy, Hold, or Avoid?
Quanta Services, Inc. (PWR)
Fundamentals
Quanta Services (PWR) demonstrates exceptional fundamental strength, marked by robust top-line growth, improving margins, and consistent quarterly earnings beats. The company operates at the heart of energy infrastructure modernization—a secular growth trend—though its current valuation appears demanding given its high P/E multiple and extended rally. While the fundamentals are compelling, valuation and technical over-extension warrant some caution for new entrants.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
26.33% YoY
Q1 2026
Net Income
60.43% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.9B | 7.8B | 7.5B | 6.8B | 6.2B | 6.6B | 6.5B | 5.6B |
| Revenue Growth YoY | +26.33% | +19.63% | +15.59% | +21.07% | +23.88% | +13.30% | +15.52% | +10.81% |
| Net Income | 231.4M | 315.5M | 339.4M | 229.3M | 144.3M | 305.1M | 293.2M | 188.2M |
| Net Income Growth YoY | +60.43% | +3.40% | +15.77% | +21.84% | +21.88% | +44.67% | +7.46% | +13.42% |
| EPS | $1.47 | $2.08 | $2.28 | $1.54 | $0.97 | $2.06 | $1.99 | $1.28 |
| EPS Growth YoY | +51.55% | +0.97% | +14.57% | +20.31% | +19.75% | +42.07% | +5.85% | +12.28% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.06% | 12.56% | 14.53% | 13.21% | 11.62% | 14.46% | 13.89% | 13.09% |
| Operating Margin | 4.24% | 6.19% | 6.89% | 5.77% | 3.92% | 6.80% | 6.56% | 5.52% |
| Net Margin | 2.94% | 4.02% | 4.52% | 3.38% | 2.31% | 4.66% | 4.52% | 3.36% |
| Return on Equity (ROE) | 2.56% | 3.53% | 4.04% | 2.92% | 1.93% | 4.17% | 4.15% | 2.86% |
| Return on Assets (ROA) | 1.48% | 2.15% | 2.47% | 1.86% | 1.24% | 2.65% | 2.52% | 1.84% |
Technical Analysis
PWR is currently in a strong uptrend supported by a golden cross and strong institutional accumulation, indicating a bullish technical environment. Despite overbought RSI readings signaling possible short-term pullbacks, overall momentum and volume trends reinforce continuation of the upward move. Key support around $570 and resistance near the recent highs suggest a well-defined trading range with breakout potential above $741.
Watch for pullback
Price in uptrend
Strong trend active
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Quanta Services (PWR) demonstrates exceptional fundamental strength, marked by robust top-line growth, improving margins, and consistent quarterly earnings beats. The company operates at the heart of energy infrastructure modernization—a secular growth trend—though its current valuation appears demanding given its high P/E multiple and extended rally. While the fundamentals are compelling, valuation and technical over-extension warrant some caution for new entrants.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$2.68
Estimated
$2.04
Surprise
+$0.64
Surprise %
+31.37%
Revenue
Actual
$7.87B
Estimated
$7B
Surprise
+$872.98M
Surprise %
+12.47%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.68 | $3.16 | $3.33 | $2.48 | $1.78 | $2.94 | $2.72 | $1.90 |
| EPS (Estimated) | $2.04 | $3.02 | $3.25 | $2.44 | $1.67 | $2.62 | $2.68 | $1.89 |
| EPS Surprise | +$0.64 | +$0.14 | +$0.08 | +$0.04 | +$0.11 | +$0.32 | +$0.04 | +$0.01 |
| % Diff | +31.4% | +4.6% | +2.5% | +1.6% | +6.6% | +12.2% | +1.5% | +0.5% |
| Revenue | ||||||||
| Revenue (Actual) | $7.87B | $7.84B | $7.51B | $6.77B | $6.23B | $6.55B | $6.49B | $5.59B |
| Revenue (Estimated) | $7B | $7.36B | $7.41B | $6.57B | $5.86B | $6.61B | $6.56B | $5.51B |
| Revenue Surprise | +$872.98M | +$480.11M | +$98.72M | +$207.68M | +$369.74M | -$59.14M | -$67.89M | +$86.36M |
| % Diff | +12.5% | +6.5% | +1.3% | +3.2% | +6.3% | -0.9% | -1.0% | +1.6% |
Valuation
Quanta Services (PWR) trades at a substantial premium relative to its Industrials sector peers, reflected in elevated multiples like P/E, P/S, and EV/EBITDA. This premium valuation is supported by robust revenue and earnings growth, a record backlog, and unique competitive advantages, though the valuation appears stretched versus sector norms.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 88.83 | 50.73 | 45.49 | 61.17 | 65.31 | 38.27 | 37.47 | 48.22 |
| Price to Sales | 10.44 | 8.17 | 8.23 | 8.28 | 6.05 | 7.13 | 6.77 | 6.49 |
| Price to Book | 9.09 | 7.16 | 7.36 | 7.14 | 5.05 | 6.38 | 6.22 | 5.53 |
| Enterprise Value to EBITDA | 244.95 | 101.08 | 80.45 | 102.85 | 92.97 | 73.61 | 75.08 | 83.31 |
| Enterprise Value to Revenue | 10.54 | 8.26 | 8.95 | 8.96 | 6.72 | 7.70 | 7.42 | 7.08 |
Sentiment & Analyst Ratings
Quanta Services (PWR) enjoys strong positive market sentiment anchored by record Q1 2026 financial results, raised full-year guidance, and a record $48.5 billion infrastructure backlog that underscores solid revenue visibility. Analysts overwhelmingly recommend buying, with multiple firms raising price targets amid optimism on long-term growth driven by infrastructure spending and renewables. Retail and social interest is rising, reflecting bullish investor psychology focused on the company's robust operational momentum.
Analyst Recommendations
Risk Assessment
Quanta Services (PWR) exhibits a strong financial position with record revenue growth driven by rising demand in electric infrastructure and data center markets. While liquidity remains adequate and debt levels low, valuation concerns and insider selling suggest cautious monitoring. Industry risks such as project execution, labor constraints, and commodity volatility could impact performance despite positive backlog and government incentives.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.14 | 1.14 | 1.34 | 1.37 | 1.31 | 1.30 | 1.23 | 1.30 |
| Quick Ratio | 1.09 | 1.09 | 1.30 | 1.32 | 1.26 | 1.26 | 1.19 | 1.25 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.12 | 0.13 | 0.72 | 0.65 | 0.64 | 0.61 | 0.71 | 0.58 |
| Debt-to-Assets | 0.04 | 0.05 | 0.26 | 0.26 | 0.25 | 0.24 | 0.27 | 0.24 |
Liquidity Assessment
Current Ratio: 1.14(Adequate)
Quick Ratio: 1.09(Strong)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 0.12(Low)
Debt-to-Assets: 0.04(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about PWR
AI Answers: Common Questions About PWR
Get AI-powered answers to the questions investors ask most about Quanta Services, Inc.
PWR is not an ideal buy at current levels for short-term traders due to an extremely high P/E of 102.05, overbought RSI (~72), and a price near its 52-week high ($788.75). Long-term investors may consider accumulating on pullbacks given the company's strong growth and $48.5B backlog, but patience for a better entry is advised.
If you are a long-term holder, fundamentals and growth remain strong, so selling is not recommended unless your risk tolerance is low or you are overweight. However, if you are a short-term trader or uncomfortable with high valuation risk, it may be prudent to trim or take profits after a 36% rally and overbought technicals.
The biggest risks are overvaluation (P/E 102.05, EV/EBITDA 7-8x sector median), insider selling, and project execution or labor shortages. Liquidity ratios are only marginally adequate (current ratio 1.13), and any delays in backlog conversion or macro headwinds could trigger a correction.
Technical resistance is at $741 and the 52-week high of $788.75; analyst targets range from $733 to $900. Short-term, expect consolidation below $741; a breakout could target $788+, but a pullback to support near $570 is possible if momentum fades.
The stock is overvalued by all major metrics: P/E is 102.05, EV/EBITDA and P/S are 7-8x sector medians, and price is well above historical averages. The premium is justified by growth and backlog, but leaves little margin for error.
Fundamentals are exceptional: revenue grew 26% YoY in Q1 2026, gross margin rose to 14.1%, ROE is near 14%, and the $48.5B backlog provides high visibility. Debt is low (D/E 0.12), and earnings quality is high with strong cash generation.
Technicals are bullish long-term with price above all major moving averages and a golden cross, but RSI at 71.6 signals overbought conditions and risk of a short-term pullback or sideways consolidation. Key support is at $570, resistance at $741 and $788.75.
Key catalysts include backlog conversion, upcoming earnings reports, further government infrastructure/energy transition incentives, and large contract wins. Watch for any updates on project execution, labor availability, or macroeconomic shifts affecting utility capex.
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