Quanta Services: The Market Compressed The Multiple And Not The Thesis

I reiterate my Strong Buy on Quanta Services, revising my price target from $1,017 to $878 after a robust Q2 2026. PWR’s Q2 2026 results exceeded expectations, with management raising full-year 2026 guidance across revenue, adjusted EBITDA, EPS, and free cash flow. The company’s recent acquisitions-Phalcon, Enerfab, Percheron and PSD significantly expand execution capacity, supporting my thesis that PWR monetizes infrastructure complexity. Updated 2028 estimates now target $47.4 billion in revenue, $5.26 billion adjusted EBITDA, and $23.22 adjusted EPS, reflecting the accretive impact of these deals.

I'm reaffirming Quanta Services ( PWR ) as a Strong Buy. I have also revised my price target to $878 per share from the previous $1,017 following the company’s Q2 2026 earnings results.