Infrastructure solutions provider Quanta (NYSE: PWR) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 26.3% year on year to $7.87 billion. The company’s full-year revenue guidance of $34.95 billion at the midpoint came in 4.9% above analysts’ estimates. Its non-GAAP profit of $2.68 per share was 31.9% above analysts’ consensus estimates.

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"Quanta delivered an exceptional first quarter, reflected by strong double-digit growth in revenue, adjusted EBITDA and adjusted earnings per share, along with record backlog of $48.5 billion. In particular, revenue growth and margin performance exceeded our expectations across both segments, demonstrating the power of our differentiated, solutions-based operating model and the execution certainty our craft-skilled workforce delivers for our customers every day. Based on this strong start to the year and improved visibility, we are increasing our full-year 2026 financial expectations and remain on track to deliver another year of double-digit earnings per share growth," said Duke Austin, President and Chief Executive Officer of Quanta Services.

Company Overview

A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Quanta’s 22% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Quanta’s annualized revenue growth of 18.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can better understand the company’s revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Quanta’s backlog reached $48.5 billion in the latest quarter and averaged 21.2% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Quanta’s products and services but raises concerns about capacity constraints.

This quarter, Quanta reported robust year-on-year revenue growth of 26.3%, and its $7.87 billion of revenue topped Wall Street estimates by 11.5%.

Looking ahead, sell-side analysts expect revenue to grow 14.5% over the next 12 months, a deceleration versus the last two years. Still, this projection is eye-popping given its scale and suggests the market sees success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Quanta’s operating margin has more or less stayed the same over the last 12 months , averaging 5.4% over the last five years. This profitability was paltry for an industrials business and caused by its suboptimal cost structureand low gross margin.

Analyzing the trend in its profitability, Quanta’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

In Q1, Quanta generated an operating margin profit margin of 4.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Quanta’s astounding 22.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Quanta’s two-year annual EPS growth of 26% was fantastic and topped its 18.4% two-year revenue growth.

Diving into Quanta’s quality of earnings can give us a better understanding of its performance. While we mentioned earlier that Quanta’s operating margin was flat this quarter, a two-year view shows its margin has expanded. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q1, Quanta reported adjusted EPS of $2.68, up from $1.78 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Quanta’s full-year EPS of $11.65 to grow 16.6%.

Key Takeaways from Quanta’s Q1 Results

This was a beat and raise quarter. It was good to see Quanta beat analysts’ revenue, EBITDA, and EPS expectations this quarter. We were also excited that the company raised full-year guidance for revenue and EPS. Zooming out, we think this quarter featured many important positives. The stock traded up 6.8% to $671.43 immediately following the results.

Sure, Quanta had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).