PWR AI Stock Analysis – Buy, Hold, or Avoid?
Quanta Services, Inc. (PWR)
Quanta Services (PWR) is fundamentally strong and in a robust uptrend, but trades at a historically high valuation, limiting near-term upside. While long-term prospects remain attractive due to secular growth drivers, the current price reflects much of this optimism, warranting patience for new buyers. Investors should monitor for a pullback or further earnings confirmation before adding aggressively.
Fundamentals
Quanta Services (PWR) continues to demonstrate robust financial health driven by strong top-line growth, consistent margin performance, and healthy earnings beats. The company has achieved significant year-over-year revenue and earnings expansion, reinforcing its leadership in the infrastructure and energy services sector.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
19.63% YoY
Q4 2025
Net Income
3.40% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.8B | 7.5B | 6.8B | 6.2B | 6.6B | 6.5B | 5.6B | 5.0B |
| Revenue Growth YoY | +19.63% | +15.59% | +21.07% | +23.88% | +13.30% | +15.52% | +10.81% | +13.62% |
| Net Income | 315.5M | 339.4M | 229.3M | 144.3M | 305.1M | 293.2M | 188.2M | 118.4M |
| Net Income Growth YoY | +3.40% | +15.77% | +21.84% | +21.88% | +44.67% | +7.46% | +13.42% | +24.53% |
| EPS | $2.08 | $2.28 | $1.54 | $0.97 | $2.06 | $1.99 | $1.28 | $0.81 |
| EPS Growth YoY | +0.97% | +14.57% | +20.31% | +19.75% | +42.07% | +5.85% | +12.28% | +22.73% |
Profitability Metrics
Technical Analysis
PWR is currently in a strong bullish uptrend, trading near its 52-week high with a well-defined advancing phase characterized by institutional accumulation. Momentum indicators and moving averages confirm sustained strength, while RSI remains neutral, indicating room for further upside without overbought conditions. Traders should watch for key support near the 50 SMA around $481 as a critical level to maintain bullish conviction.
No extreme reading
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) continues to demonstrate robust financial health driven by strong top-line growth, consistent margin performance, and healthy earnings beats. The company has achieved significant year-over-year revenue and earnings expansion, reinforcing its leadership in the infrastructure and energy services sector.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$3.16
Estimated
$3.02
Surprise
+$0.14
Surprise %
+4.64%
Revenue
Actual
$7.84B
Estimated
$7.36B
Surprise
+$478.16M
Surprise %
+6.50%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $3.16 | $3.33 | $2.48 | $1.78 | $2.94 | $2.72 | $1.90 | $1.41 |
| EPS (Estimated) | $3.02 | $3.25 | $2.44 | $1.67 | $2.62 | $2.68 | $1.89 | $1.29 |
| EPS Surprise | +$0.14 | +$0.08 | +$0.04 | +$0.11 | +$0.32 | +$0.04 | +$0.01 | +$0.12 |
| % Diff | +4.6% | +2.5% | +1.6% | +6.6% | +12.2% | +1.5% | +0.5% | +9.3% |
| Revenue | ||||||||
| Revenue (Actual) | $7.84B | $7.51B | $6.77B | $6.23B | $6.55B | $6.49B | $5.59B | $5.03B |
| Revenue (Estimated) | $7.36B | $7.41B | $6.57B | $5.86B | $6.61B | $6.56B | $5.51B | $4.94B |
| Revenue Surprise | +$478.16M | +$98.72M | +$207.68M | +$369.74M | -$59.14M | -$67.89M | +$86.36M | +$94.6M |
| % Diff | +6.5% | +1.3% | +3.2% | +6.3% | -0.9% | -1.0% | +1.6% | +1.9% |
Valuation
Quanta Services (PWR) currently trades at a significant premium compared to the broader industrials sector, reflecting robust revenue growth, a strong backlog, and optimistic future guidance. While valuation multiples are elevated, analyst sentiment remains generally positive, supporting moderate upside potential. The premium valuation is largely driven by sustainable growth prospects and expanding market opportunities.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 50.73 | 45.49 | 61.17 | 65.31 | 38.27 | 37.47 | 48.22 | 79.92 |
| Price to Sales | 8.17 | 8.23 | 8.28 | 6.05 | 7.13 | 6.77 | 6.49 | 7.52 |
| Price to Book | 7.16 | 7.36 | 7.14 | 5.05 | 6.38 | 6.22 | 5.53 | 5.95 |
| Enterprise Value to EBITDA | 101.08 | 80.45 | 102.85 | 92.97 | 73.61 | 75.08 | 83.31 | 116.48 |
| Enterprise Value to Revenue | 8.26 | 8.95 | 8.96 | 6.72 | 7.70 | 7.42 | 7.08 | 8.21 |
Sentiment & Analyst Ratings
Quanta Services (PWR) stock sentiment is moderately positive, supported by solid recent earnings beats and strong revenue growth, alongside bullish analyst price target revisions. However, sentiment is tempered by overvaluation concerns and a high P/E ratio relative to peers, leading to somewhat cautious optimism in the market. Retail and social sentiment reflect steady engagement but no overwhelming retail-driven momentum currently.
Analyst Recommendations
Risk Assessment
Quanta Services (PWR) maintains a solid financial foundation with manageable leverage and a strong backlog driving positive growth expectations for 2026. While liquidity has slightly weakened recently, the company continues to show sufficient short-term coverage. Industry tailwinds like grid modernization and data center growth underpin its long-term prospects, although operational risks and margin pressures remain.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.14 | 1.34 | 1.37 | 1.31 | 1.30 | 1.23 | 1.30 | 1.36 |
| Quick Ratio | 1.09 | 1.30 | 1.32 | 1.26 | 1.26 | 1.19 | 1.25 | 1.32 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.13 | 0.72 | 0.65 | 0.64 | 0.61 | 0.71 | 0.58 | 0.63 |
| Debt-to-Assets | 0.05 | 0.26 | 0.26 | 0.25 | 0.24 | 0.27 | 0.24 | 0.26 |
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: 0.13(Low)
Debt-to-Assets: 0.05(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.
At $566 and a P/E of 83, PWR is trading at a significant premium to its sector and historical averages, reflecting high growth expectations. While the fundamentals are strong and the uptrend is intact, new buyers may want to wait for a pullback toward the $480-$485 support zone or further earnings confirmation before entering.
If you already own PWR, there is no fundamental reason to sell given the strong growth, record backlog, and technical uptrend. However, consider trimming if you are risk-averse or overweight, as the high valuation increases downside risk if growth disappoints.
The biggest risks are the elevated valuation (P/E 83, EV/EBITDA 30), potential margin compression from labor and supply chain pressures, and execution risk on large projects. Liquidity remains adequate (current ratio 1.14), but has slightly weakened, so ongoing monitoring is warranted.
Immediate resistance is at the 52-week high of $573.97; a breakout could target $590, while strong support lies at $481 (50-day SMA). Analyst targets have been raised recently, but most see only moderate upside from current levels due to valuation.
PWR is overvalued by traditional metrics: P/E is 83, EV/EBITDA is 30, and P/S is 3.0, all well above sector norms. The premium is justified by strong growth and backlog, but leaves little margin for error.
Fundamentally, PWR is very strong: double-digit revenue and EPS growth, stable margins (gross ~13%, operating ~5.8%), high ROE (15-16%), low leverage (debt/equity 0.13), and a record backlog support continued expansion.
Technically, PWR is in a strong uptrend above all major moving averages, with a golden cross and ADX above 37. RSI at 69 is near overbought, suggesting limited short-term upside and a possible consolidation or pullback.
Key catalysts include upcoming earnings reports, major contract announcements, and regulatory developments in grid modernization and renewables. Continued analyst upgrades and management commentary at investor conferences could also move the stock.
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