Truist Securities on Thursday boosted its 12-month price target for Quanta Services (NYSE:PWR) to $643 from $548 while retaining a Buy rating, citing the company’s fourth-quarter earnings beat and fiscal 2026 guidance that outpaced Wall Street expectations.
Quanta reported adjusted earnings per share of $3.16 for the fourth quarter of 2025. That result topped the consensus figure cited in initial coverage of the quarter, which was $3.12. In another set of estimates referenced by the company, the $3.16 result also exceeded a forecasted $3.02 figure reported elsewhere. Revenue for the quarter was reported at $7.8 billion, higher than the $7.37 billion that had been anticipated.
Within the company’s Electric Infrastructure business, sales rose 19.4% year-over-year, or 16.4% on an organic basis, and the segment delivered margins of 10.8% for the quarter. Management said acquisitions accounted for $0.09 of the adjusted EPS number for the period.
Quanta completed three acquisitions in the fourth quarter - Tri-City Group, Wilson Construction Company, and Billings Flying Service - which the company expects will contribute between $1.7 billion and $1.9 billion in incremental sales for 2026 and add $0.40 to $0.50 to adjusted earnings per share in that year. Company commentary and published materials state that those smaller regional electric infrastructure purchases were a driving factor behind the stronger fiscal 2026 outlook.
For fiscal 2026 the company issued adjusted EPS guidance with a midpoint of $13.00, which implies growth of roughly 21% at the high end of its targeted range. That midpoint sits above the Street estimate of $12.43 referenced in coverage of the guidance.
Quanta is also allocating capital to expand manufacturing capacity in the power transformer space, with plans to invest between $500 million and $700 million over the next several years.
On the balance-sheet and backlog front, the company reported total backlog of $43.976 billion at quarter end, up 27.3% from $34.539 billion a year earlier. The reported backlog figure includes approximately $1.7 billion attributable to the fourth-quarter acquisitions. The backlog total does not include NiSource projects or 765KV projects that Quanta expects could materialize in the latter half of 2027.
Market reaction to the results and outlook has been strong: shares reached $557.55 and were trading near a 52-week reference point of $554.64, capping a roughly 97% gain over the prior 12 months. That price performance has pushed the stock’s price-to-earnings ratio to about 80. Independent valuation analysis cited alongside the company’s public disclosures flags the shares as currently trading above a Fair Value estimate.
Other broker reactions following Quanta’s quarterly update included a move by BMO Capital, which raised its target to $600 from $462 while keeping a Market Perform rating, and an adjustment from Bernstein SocGen Group, which lifted its target to $515 from $471 and also retained a Market Perform rating.
Management highlighted expected growth drivers across multiple end markets, with commentary anticipating roughly 20% earnings growth in 2026 and noting promising opportunities in the electric grid, gas, power generation, and technology and load-center segments. The company also noted that data center work now represents about 10% of its overall business mix.
What this means - The quarter combined an earnings beat, strong Electric Infrastructure performance and a string of strategic acquisitions that materially boost 2026 sales and EPS assumptions. Those factors underlie the higher price target from Truist and the more bullish guidance profile for the next fiscal year.