Quanta Stock Up 16% in 6 Months: Is It Still a Hold Heading Into 2026?

Quanta Services, Inc. PWR has delivered solid gains over the past six months. Shares of the Houston, TX-based specialized contracting firm have climbed 16.6% during this period, significantly outpacing the Zacks Engineering – R&D Services industry’s 3.1% growth. The stock has also outperformed the broader Construction sector and the S&P 500, which have advanced 7.5% and 16.2%, respectively, over the same timeframe.

Demand momentum continues to build as the company supports critical power, grid and infrastructure needs across key U.S. markets. Expanding electricity requirements from data centers, manufacturing activity and technology customers are helping sustain project flow, while broader electrification trends are driving additional opportunities in generation, storage and transmission work.

PWR Stock Outperforms Peers, Industry & Market

The stock has outperformed some other players, including Fluor Corporation FLR, KBR, Inc. KBR and AECOM ACM. In the past six months, Flour, KBR and ACM have lost 16.7%, 15.4% and 13.3%, respectively.

Quanta’s recent strength reflects a supportive demand backdrop and steady execution, but the key question now is how these trends shape the stock’s positioning as the company heads toward 2026.

PWR Gains From Accelerating Grid and Power Infrastructure Spend

Quanta is positioned at the center of rising electricity demand, expanding power needs and ongoing grid modernization. The company continues to benefit from stronger investment across electric transmission, distribution, power generation and storage infrastructure as utilities and large load customers plan for higher and more reliable capacity. This environment supports steady project flow and highlights the company’s role in supporting critical energy systems.

In the first nine months of 2025, revenues increased approximately 20.6% year over year to $20.6 billion, reflecting healthy activity across power, transmission and related infrastructure work. The company also reported strong third-quarter performance with continued strength in the Electric segment and record backlog levels, reinforcing business momentum. These industry trends and demand drivers set a constructive backdrop as the company moves toward 2026.

Quanta’s Expanding Project Pipeline Enhances Visibility

The company is shaping a stronger long-term growth runway as large-scale power, grid and generation programs advance across key markets. In the third quarter of 2025, PWR’s backlog reached a record $39.2 billion, up from $33.96 billion a year ago, showing strong demand visibility across major end markets. Interest remains supported by work linked to generation, battery storage, transmission, substation and underground infrastructure. 

With a broader mix of utility service work and large strategic projects, the company is entering the next phase of its investment cycle with a clearer execution runway. This expanding pipeline supports sustained operational strength as the company moves toward 2026.

PWR’s Execution Strength & Self-Perform Model Aid Margin Stability

Execution capability remains a key pillar for PWR. The company emphasized the craft-skilled workforce, disciplined investment approach and strong self-perform model as core strengths that support delivery certainty and risk control. The company highlighted the integrated total solutions platform, which brings together engineering, technology, program management, supply chain and labor capabilities to manage complex infrastructure programs more efficiently.

This structure supports quality, strengthens customer relationships and allows better control over large-scale projects. With the company expecting continued growth momentum, execution discipline and operational strength remain important as the company advances toward 2026.

Earnings Estimate Trend of PWR

For 2026, estimates for Quanta’s earnings have increased to $12.38 from $12.34 per share. This indicates expected earnings growth of 16.9% year over year on projected revenue growth of 11%.
 

Conversely, AECOM, KBR and Fluor’s earnings in the next year are likely to witness year-over-year increases of 8%, 9.6% and 4.5%, respectively.

Headwinds Ahead of Quanta

The company still faces certain near-term challenges, especially in large power generation and EPC-style programs that involve higher execution complexity and require careful risk control. Some pipeline-related work has also seen timing variability, which may create quarter-to-quarter fluctuations rather than a steady contribution. 

In addition, large programs need disciplined contract structures and coordinated planning to avoid unfavorable exposure, while industry factors such as permitting processes and affordability considerations can influence project timing. These elements introduce manageable uncertainty, even as the broader demand environment remains constructive heading toward 2026.

Taking a Look at Quanta Stock’s Valuation

From a valuation standpoint, the company is currently trading at a premium relative to the industry and historical metrics, with its forward 12-month price-to-earnings (P/E) ratio sitting above the five-year average.

Moreover, PWR is priced higher than some of its industry peers, such as AECOM, Fluor and KBR, which trade at 16.82X, 18.23X and 9.69X, respectively.

Final Take on PWR Stock

Quanta remains supported by healthy fundamentals, steady execution and strong visibility from a solid project pipeline. Rising electricity needs, grid investment and expanding opportunities in power generation and infrastructure provide a constructive setup as the company moves toward 2026. Revised earnings expectations and continued confidence in operational performance also reflect a favorable business outlook.

However, the stock is currently trading at a premium compared with several peers, suggesting that a meaningful part of the positive narrative is already reflected in the price. With valuation running ahead of the group and some project-related and timing uncertainties still present, the stock appears better positioned for steady rather than aggressive upside in the near term. 

It is prudent for existing investors to hold on to this Zacks Rank #3 (Hold) stock for now. New investors are advised to wait for now and look for a better entry point when the near-term trends favor PWR stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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