Analyst action and valuation
Bernstein SocGen Group raised its price target on Quanta Services (PWR) to $515 from $471 and left its rating at Market Perform. The new target sits below where the shares are currently trading - the stock is at $554 - and below a separate fair value estimate of $404.65, implying the shares may be trading at a premium to those analyst-derived measures.
Guidance and end-market outlook
Quanta provided guidance that includes 20% earnings growth in 2026. The company supplied end-market growth ranges that Bernstein highlighted: electric grid and gas are expected to expand 10-20%, power generation 10-15% and technology and load centers 60-80%. Bernstein’s note also pointed out that data centers now represent 10% of Quanta’s overall business.
Backlog, visibility and share performance
Fourth-quarter backlog rose 15% year-over-year, and Bernstein observed that the company’s forward visibility now stretches into the 2030s. Over the past 12 months the stock has returned 97%. InvestingPro-style valuation metrics noted in the report flagged a high price-to-earnings ratio of 76.37, a point the analyst commentary used to underline valuation risk relative to growth expectations.
Acquisitions disclosed
Quanta completed three acquisitions during the fourth quarter: Tri-State, described as an electrical services firm with fabrication capabilities; Wilson, identified as a high-voltage contractor; and Billings, which was noted for adding helicopter capabilities. The aggregate consideration for those deals was $1.73 billion. Bernstein estimated the combined impact of the purchases at $1.8 billion in added sales, $1.7 billion added to backlog and a contribution of 40-50 cents to earnings per share.
Quarterly results
For the fourth quarter of 2025 Quanta reported earnings per share of $3.16, beating an expected $3.02. Revenue for the quarter was $7.8 billion versus a consensus expectation of $7.37 billion. Those results were presented as evidence of robust performance during the period.
Conflicting notes and analyst activity
Alongside the acquisition announcements, another line in the reporting indicated that no recent mergers or acquisitions were reported for Quanta Services. Similarly, the commentary noted that analyst firms had not posted any recent upgrades or downgrades for the company. These statements sit alongside the acquisition details and the Bernstein note, reflecting differing pieces of information in circulation about corporate activity and external analyst movement.
Where investors may look next
Bernstein’s revised target and maintained Market Perform rating reflect balance between the company’s revenue and backlog growth and the premium the market has placed on the shares. The firm’s estimates for end-market growth, the sizeable Q4 acquisitions and the beat on quarterly results provide material inputs for valuation and near-term earnings expectations.
For readers seeking deeper valuation and growth analysis, the report referenced a comprehensive research product available to subscribers.