Quanta Before Q2 Earnings: Should You Buy, Sell or Hold the Stock Now?

Can PWR's utility spending and data center growth offset its premium valuation and execution risks ahead of Q2 earnings?

Shrabana Mukherjee

4 min read

Quanta Services, Inc. PWR is slated to report its second-quarter 2026 results on July 30, before the opening bell. The quarter is expected to reflect continued strength in utility capital spending, transmission investments and accelerating demand from data center and other large-load infrastructure projects.

In the last reported quarter, Quanta reported adjusted earnings of $2.68 per share, up 50.6% from $1.78 in the year-ago quarter and ahead of the Zacks Consensus Estimate of $2.04 by 31.4%. Revenues increased 26.3% year over year to $7.87 billion and topped the consensus mark of $6.99 billion by 12.6%.

Quanta’s earnings topped the consensus mark in each of the trailing four quarters. The average surprise is shown in the chart below.

Image Source: Zacks Investment Research

How Are Estimates Placed for PWR Stock?

The Zacks Consensus Estimate for second-quarter earnings per share (EPS) has remained unchanged at $3.29 over the past 60 days. The estimate indicates 32.7% growth from the year-ago. The consensus mark for revenues is pegged at $8.53 billion, indicating a 25.9% year-over-year increase.

For 2026, Quanta is expected to register a 22% increase from a year ago in revenues. Its EPS is expected to grow 30.5% from a year ago. Below is what to expect from the PWR stock.

Image Source: Zacks Investment Research

Utility Spending & Data Center Demand to Drive Revenues

Second-quarter revenues are likely to have benefited from robust utility transmission and distribution investments, grid modernization projects and rising demand for infrastructure supporting data centers and power generation. Management expects both operating segments to deliver sequential revenue growth during the second quarter, reflecting improved project visibility and continued execution across its diversified end markets. The Electric Infrastructure Solutions segment (which contributed 82.1% to first-quarter 2026 revenues) is expected to remain Quanta's primary growth engine, supported by transmission expansion, grid hardening, generation interconnections and large-load projects, including data center-related projects. Management expects the segment to deliver sequential revenue growth in the second quarter.

The Zacks Consensus Estimate for the segment revenues is currently pegged at $6.88 billion, indicating growth from $5.46 billion a year ago.

The Underground Utility & Infrastructure Solutions segment (which contributed 17.9% to first-quarter 2026 revenues) is also expected to post sequential revenue growth in the second quarter, driven by healthy utility and infrastructure spending and continued project execution, with second-quarter revenues expected to be at comparable levels year over year.

The Zacks Consensus Estimate for the segment revenues is currently pegged at $1.62 billion, indicating growth from $1.32 billion a year ago.

Project Mix & Execution to Support Quanta’s Margins

Margins are expected to improve sequentially in both business segments, aided by favorable project mix and disciplined execution. However, weather, permitting delays, tariffs, inflation and supply-chain constraints remain potential headwinds. Management also expects interest expense and the effective tax rate to peak during the second quarter before easing over the balance of the year.

Management expects operating margins in the Electric Infrastructure Solutions segment to improve sequentially during the to-be-reported quarter, with second-quarter margins expected to be comparable to those achieved in the second quarter of 2025. Quanta also expects the Underground Utility & Infrastructure Solutions segment to deliver sequential operating margin improvement in the quarter, reflecting stronger execution and improving project mix.

What the Zacks Model Says for Quanta Stock

Our proven model does not conclusively predict an earnings beat for PWR this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

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

PWR Stock’s Price Performance

PWR stock has gained 46.9% 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)

Image Source: Zacks Investment Research

Quanta competes with Sterling Infrastructure, Inc. STRL, MasTec, Inc. MTZ and EMCOR Group, Inc. EME across utility infrastructure, power transmission and data center construction. Year to date, Sterling has surged 107.2%, followed by MasTec at 54.9% and EMCOR at 21.4%. Quanta remains well positioned alongside these peers, supported by its leading position in grid modernization, power generation and AI-driven data center infrastructure.

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 40.19, as evidenced by the chart below.

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

Image Source: Zacks Investment Research

At 40.19X forward 12-month earnings, Quanta trades at a significant premium to its infrastructure peers, reflecting investors' confidence in its market leadership, record backlog and long-term growth prospects. By comparison, Sterling trades at 28.09X, MasTec at 27.1X and EMCOR at 23.65X forward earnings. Quanta's richer valuation suggests the market is assigning a premium for its dominant position in electric infrastructure, grid modernization and AI-driven data center projects, while also pricing in expectations for sustained earnings growth and disciplined execution.

Conclusion

The company continues to benefit from powerful long-term growth drivers, including grid modernization, utility capital investments and accelerating AI-driven data center infrastructure demand, which support its strong revenue and earnings outlook. However, a premium valuation and near-term execution risks tied to tariffs, inflation and project timing suggest much of the optimism is already reflected in the stock. Investors may be better served holding PWR while awaiting fresh evidence that the company can sustain its strong execution and justify further upside after the earnings release.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report