Stifel on Monday raised its price objective for Quanta Services (PWR) to $647 from $517 and reiterated a Buy rating, citing fourth-quarter 2025 results that topped expectations. The firm highlighted the Electric segment's strong performance and the impact of completed acquisitions as key drivers behind the beat.
The company completed several deals that Stifel and other analysts said reinforced Quanta's service mix. Those deals included the acquisition of Tri-City, which focuses on inside electrical work; Wilson, which adds transmission and distribution capabilities; and Billings, which provides helicopter services. Management indicated these transactions materially contributed to the quarter and to forward guidance.
Quanta's shares have responded to the results and guidance, trading close to a 52-week high of $565.93. The stock has delivered a 105% return over the past year. However, InvestingPro data flags PWR as trading above its Fair Value and lists the company among names on the Most Overvalued list.
Operationally, Quanta reported an 11% increase in organic revenue for the quarter. Revenue in the Electric business rose 17%, while Underground revenue declined 14%. The company's total backlog climbed 27% year-over-year, or 22% on an organic basis, and orders expanded 77% year-over-year, or 54% organically.
Guidance for fiscal 2026 stood out versus market expectations. At the midpoint, Quanta's 2026 revenue outlook was roughly $2 billion higher than consensus, with the fourth-quarter acquisitions contributing an estimated $1.7 billion to $1.9 billion of that gap. Adjusted earnings per share guidance for 2026 also exceeded consensus by $0.62 at the midpoint; the acquisitions were expected to add between $0.40 and $0.50 to adjusted EPS guidance.
In its note, Stifel cited an acceleration in organic awards as supporting a constructive view for 2026. The firm pointed to upward trends in load growth that are prompting utility investment, a larger pipeline of combined-cycle gas turbine work, and what it described as ongoing accretive merger and acquisition activity as underpinning the outlook.
Quanta reported adjusted earnings per share of $3.16 for Q4 2025, beating the consensus estimate of $3.12. Electric Infrastructure sales rose 19.4% year-over-year, with an organic growth rate of 16.4%, which the company and analysts said helped drive the stronger quarter.
Following the quarter and Quanta's forward guidance, a range of brokerages adjusted their price targets upward. UBS raised its target to $646, citing backlog growth; Truist Securities lifted its target to $643, referencing the earnings beat and encouraging fiscal 2026 guidance; Cantor Fitzgerald and DA Davidson moved targets to $630 and $575, respectively, based on durable demand and solid quarterly results; and BMO Capital set a $600 target, calling attention to recent acquisitions totaling over $1.7 billion.
Collectively, these analyst actions reflect broadly positive sentiment among research desks in response to Quanta's quarter and its projections for 2026, while some market valuation tools highlight a premium to intrinsic value.
Context for investors
Investors assessing Quanta’s outlook will weigh stronger near-term revenue and EPS guidance against valuation measures that indicate the stock may be trading above fair value. The company's elevated backlog, order growth and targeted acquisitions are central factors shaping analyst optimism for 2026.