Third Quarter 2026
Filed Oct 29, 2026Quanta Services reports record third-quarter revenue of $12.01 billion, GAAP diluted EPS of $4.55, adjusted diluted EPS of $6.06 and raises full-year 2026 expectations across all metrics.
Third-quarter revenue, net income attributable to common stock, adjusted EBITDA, operating cash flow, free cash flow, remaining performance obligations and backlog were described as record results. Both operating segments increased revenue and operating margin versus the prior-year quarter, while full-year 2026 guidance was increased across revenue, earnings, EBITDA and cash-flow measures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $12.01B | – | – |
| Cost of services, three months ended September 30, 2026GAAP | 10.01B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | 2.01B | – | – |
| Operating income, three months ended September 30, 2026GAAP | 1.03B | – | – |
| Operating margin, three months ended September 30, 2026GAAP | 8.5 % | – | – |
| Net income, three months ended September 30, 2026GAAP | 706.9M | – | – |
| Net income attributable to common stock, three months ended September 30, 2026GAAP | $694.9M | – | – |
| Diluted earnings per share attributable to common stock, three months ended September 30, 2026GAAP | $ 4.55 | – | – |
| Adjusted net income attributable to common stock, three months ended September 30, 2026non-GAAP | $924.9M | – | – |
| Adjusted diluted earnings per share attributable to common stock, three months ended September 30, 2026non-GAAP | $ 6.06 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | 1.32B | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $1.45B | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $1.45B | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | −268.0M | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $1.20B | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $29.45B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | 4.66B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 2.06B | – | – |
| Operating margin, nine months ended September 30, 2026GAAP | 7.0 % | – | – |
| Net income attributable to common stock, nine months ended September 30, 2026GAAP | $1.37B | – | – |
| Diluted earnings per share attributable to common stock, nine months ended September 30, 2026GAAP | $ 8.97 | – | – |
| Adjusted diluted earnings per share attributable to common stock, nine months ended September 30, 2026non-GAAP | $ 12.98 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $3.20B | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $2.94B | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $2.27B | – | – |
| Total remaining performance obligations, September 30, 2026other | $41.75B | – | – |
| Total backlog, September 30, 2026non-GAAP | $63.73B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Electric, three months ended September 30, 2026The filing cited broadening demand across utility, power generation, industrial and technology customers. Electric segment operating income was $ 1,238,137 (In thousands) and operating margin was 12.6 %, compared with $ 703,839 (In thousands) and 11.4 %. | $9.80B | – | – |
| Underground and Infrastructure, three months ended September 30, 2026The filing cited broadening demand across utility, power generation, industrial and technology customers. Segment operating income was $ 207,952 (In thousands) and operating margin was 9.4 %, compared with $ 122,216 (In thousands) and 8.4 %. | $2.22B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year ending December 31, 2026 outlook
- Revenue$41.3 billion and $41.6 billion
- NoteNet income attributable to common stock: $1.92 billion and $1.98 billion
- NoteDiluted earnings per share attributable to common stock: $12.57 and $12.97
- NoteAdjusted diluted earnings per share attributable to common stock: $17.90 and $18.30
- NoteEBITDA: $3.99 billion and $4.09 billion
- NoteAdjusted EBITDA: $4.40 billion and $4.49 billion
- NoteNet cash provided by operating activities: $3.45 billion and $4.00 billion
- NoteFree cash flow: $2.50 billion and $3.00 billion
What drove it
- Management said demand for Quanta's services is broadening across utility, power generation, industrial and technology customers.
- Total remaining performance obligations were $ 41,752,996 (In thousands) and total backlog was $ 63,731,693 (In thousands) at September 30, 2026.
- Electric segment third-quarter operating margin was 12.6 %, compared with 11.4 % in the prior-year quarter.
- Underground and Infrastructure segment third-quarter operating margin was 9.4 %, compared with 8.4 % in the prior-year quarter.
- Quanta completed five acquisitions in the first nine months of 2026. Two acquisitions completed in September and October had aggregate consideration, net of cash acquired, of approximately $245 million and are not expected to contribute materially to full-year 2026 financial results.
Concerns
- Management identified weather, regulatory, permitting, supply chain challenges and other factors affecting project timing and execution as factors that have impacted, and may impact, financial results.
- The outlook also considers uncertainty associated with inflation, interest rates and potential recessionary economic conditions.
- The company noted risks from project accelerations, cancellations or delays, commercial issues, permitting and regulatory requirements, natural disasters, emergencies and adverse weather conditions affecting timing of remaining performance obligations and backlog realization.
- Long-term debt, net of current maturities, was $ 6,351,734 (In thousands) at September 30, 2026, compared with $ 5,231,008 (In thousands) at December 31, 2025.
What to watch
- Execution against full-year revenue guidance of $41.3 billion and $41.6 billion and adjusted diluted EPS guidance of $17.90 and $18.30.
- Conversion of $ 41,752,996 (In thousands) of remaining performance obligations and $ 63,731,693 (In thousands) of backlog into revenue.
- Whether Electric and Underground and Infrastructure sustain their third-quarter operating margins of 12.6 % and 9.4 %, respectively.
- Fourth-quarter cash generation relative to full-year net cash provided by operating activities guidance of $3.45 billion and $4.00 billion and free-cash-flow guidance of $2.50 billion and $3.00 billion.
- Integration and financial contribution of acquisitions, including the two September and October 2026 transactions that are not expected to contribute materially to full-year 2026 financial results.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 2,315,271 (In thousands), compared with $ 439,508 (In thousands) at December 31, 2025.
- Current maturities of long-term debt at September 30, 2026: $ 639,343 (In thousands), compared with $ 763,898 (In thousands) at December 31, 2025.
- Long-term debt, net of current maturities, at September 30, 2026: $ 6,351,734 (In thousands), compared with $ 5,231,008 (In thousands) at December 31, 2025.
- In August 2026, Quanta issued $2.00 billion aggregate principal amount of senior notes.
- On September 1, 2026, Quanta prepaid the full $618.8 million outstanding balance of the term loan under its senior credit facility.
- Free Cash Flow was $ 1,199,368 (In thousands) for the third quarter and $ 2,269,756 (In thousands) for the nine months ended September 30, 2026.
Analysis
Quanta reported record third-quarter results, led by revenue of $ 12,014,877 (In thousands), compared with $ 7,631,408 (In thousands) in the prior-year quarter. GAAP operating income was $ 1,026,547 (In thousands), with an 8.5 % operating margin compared with 6.8 %. Net income attributable to common stock was $ 694,859 (In thousands), or $ 4.55 per diluted share, while adjusted diluted earnings per share was $ 6.06 compared with $ 3.33.
Both reportable segments expanded in the quarter. Electric revenue was $ 9,799,838 (In thousands), and its operating margin rose to 12.6 % from 11.4 %. Underground and Infrastructure revenue was $ 2,215,039 (In thousands), and its operating margin rose to 9.4 % from 8.4 %. Management attributed the backdrop to broadening demand across utility, power generation, industrial and technology customers, while emphasizing workforce flexibility and self-perform capabilities.
Cash generation was substantial. Net cash provided by operating activities was $ 1,453,741 (In thousands), and Free Cash Flow was $ 1,199,368 (In thousands), following capital expenditures of (267,957) (In thousands). At September 30, cash and cash equivalents were $ 2,315,271 (In thousands). The company also issued $2.00 billion of senior notes during August and prepaid the full $618.8 million term-loan balance on September 1. No share repurchases or dividends were reported in the filing.
Visibility increased with total remaining performance obligations of $ 41,752,996 (In thousands) and total backlog of $ 63,731,693 (In thousands), both described as records. The company completed five acquisitions in the first nine months of 2026, including two announced transactions with approximately $245 million of aggregate consideration, net of cash acquired. Management said those two acquisitions are not expected to contribute materially to full-year 2026 results.
Full-year 2026 expectations were raised across all cited measures. Revenue is now expected to range between $41.3 billion and $41.6 billion, adjusted diluted EPS between $17.90 and $18.30, adjusted EBITDA between $4.40 billion and $4.49 billion, and free cash flow between $2.50 billion and $3.00 billion. The guidance continues to recognize weather, regulatory, permitting, supply-chain and macroeconomic uncertainties that can affect project timing and execution.
Management, verbatim
Quanta delivered another exceptional quarter, with third-quarter results that again exceeded expectations. Revenue, adjusted EBITDA and adjusted diluted earnings per share all achieved strong double-digit growth, cash flow was robust and total backlog reached a record $63.7 billion.
Duke Austin, President and Chief Executive Officer of Quanta Services
Given this outperformance and the expected incremental strength in the fourth quarter, we are again significantly increasing our full-year 2026 financial expectations across all metrics.
Duke Austin, President and Chief Executive Officer of Quanta Services
With demand for our services broadening across utility, power generation, industrial and technology customers, we are pacing ahead of the multi-year growth targets we outlined at our 2026 Investor Day, and our conviction in Quanta’s ability to compound profitable growth over the long term continues to strengthen.
Duke Austin, President and Chief Executive Officer of Quanta Services
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the presented third-quarter metrics.
- Percentage revenue growth rates were not printed for consolidated revenue or either segment revenue.
- Gross margin was not reported.
- Share repurchases and dividends were not reported.
- A previous outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
- Guidance for gross margin, operating expenses and tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.