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Quanta reported Q3 FY2026 revenue of $12.0 billion, above the $11.0 billion consensus. Adjusted earnings per share of $6.06 also exceeded the $5.03 consensus.
Revenue rose from $7.6 billion a year earlier, with the filing attributing increases in both Electric and Underground and Infrastructure to demand and acquired businesses. Quanta said Electric’s operating income and margin benefited from higher revenue and improved execution across electric and power generation services. In Underground and Infrastructure, acquired mechanical-services businesses contributed revenue and helped absorb fixed costs.
The company’s gross margin rose to 16.7% from 15.9%, while operating margin increased to 8.54% from 6.78%. Quanta reported free cash flow of $1.2 billion, compared with $398.7 million a year earlier. The filing said demand from utility customers was linked in part to electricity needs from data centers, manufacturing and electrification.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $12.0 billion | $7.6 billion | 57.4% |
| Diluted EPS | $4.63 | $2.24 | 106.7% |
| Gross margin | 16.7% | 15.9% | 0.8 percentage points |
| Operating margin | 8.54% | 6.78% | 1.8 percentage points |
| Free cash flow | $1.2 billion | $398.7 million | 188.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $6.06 | $5.03 | Beat by 20.5% |
| Revenue | $12.0 billion | $11.0 billion | Beat by 9.37% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Earl Austin said customers are planning infrastructure programs years ahead and want craft labor and supply-chain resources aligned with those plans. He said utilities need grid expansion for reliability and electricity demand, while transmission programs are progressing through permitting, planning and engineering toward contracts. Austin said opportunities in generation and large electricity users could add to the utility work.
Asked about backlog, Austin said growth was broad-based across the segments. He said some large transmission and generation projects had yet to enter backlog, and that timing could be uneven because Quanta includes work only when it is signed. CFO Jayshree Desai said backlog grew across the company’s key markets from the preceding quarter.
On margins, Austin told analysts that growth in employees was providing leverage on training spending. He said off-site manufacturing was helping field efficiency and that the Underground and Infrastructure margin could improve as older work is completed and newer business takes its place. Austin also said Quanta had grown by 26,000 people during the year.
Desai said contract terms in mechanical, engineering and renewable work were contributing to improved working capital. She said future cash conversion would depend on the mix of work and noted that supply-chain and off-site manufacturing investments use cash. On pricing, Austin said customers want projects delivered at a reasonable cost; Desai pointed to contract terms rather than a specific pricing figure.
Austin said Quanta acquired a pole manufacturing facility and was investing in supply-chain capabilities to address material constraints. He said the company would use its balance sheet to help mitigate customer supply risks, including copper. Desai said acquisitions also strengthened engineering, fabrication and supply-chain capabilities. For the next quarter, Austin cited expected incremental activity as a reason Quanta raised its full-year expectations.
Guidance
Quanta raised its FY2026 revenue outlook to $41.3 billion–$41.6 billion and adjusted EPS guidance to $17.90–$18.30. The company also raised its adjusted EBITDA outlook to $4.4 billion–$4.5 billion and free cash flow guidance to $2.5 billion–$3.0 billion.
Austin said Quanta sees an opportunity for double-digit adjusted EPS growth in 2027, supported by its backlog and growing workforce.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating margin, Underground Infrastructure | FY2027 | Quanta Services expects its underground infrastructure operating margin could reach double digits in some quarters of FY2027. | — | — |
| Headcount | Q1 FY2027 | Quanta Services expects headcount to decrease slightly in Q1 FY2027. | — | — |
| EPS, non-GAAP | FY2027 | Quanta Services sees an opportunity for strong double-digit adjusted EPS growth in FY2027. | — | — |
| Free cash flow | FY2026 | $2.5 billion–$3.0 billion | — | New |
| EPS, non-GAAP | FY2026 | $17.90–$18.30 | $16.45–$16.95 | Raised |
| EBITDA, non-GAAP | FY2026 | $4.4 billion–$4.5 billion | $4.1 billion–$4.2 billion | Raised |
| Revenue | FY2026 | $41.3 billion–$41.6 billion | $39.3 billion–$39.7 billion | Raised |
| Free cash flow, non-GAAP | FY2026 | $2.5 billion–$3.0 billion | $2.0 billion–$2.5 billion | Raised |
| Operating cash flow | FY2026 | $3.5 billion–$4.0 billion | $2.9 billion–$3.4 billion | Raised |
| EBITDA, Unadjusted | FY2026 | $4.0 billion–$4.1 billion | — | New |
| EPS, GAAP | FY2026 | $12.57–$12.97 | $11.41–$11.92 | Raised |
| Net income | FY2026 | $1.9 billion–$2.0 billion | $1.7 billion–$1.8 billion | Raised |
| EBITDA, Acquisitions; non Gaap | FY2026 | $120.0 million–$140.0 million | — | New |
| Revenue, Acquisitions | FY2026 | $1.2 billion–$1.4 billion | — | New |
| EBITDA, GAAP | FY2026 | $3.7 billion–$3.9 billion | — | New |
| EPS, Adjusted | FY2026 | $13.55–$14.25 | — | New |
| EBITDA, Adjusted | FY2026 | $3.5 billion–$3.7 billion | — | New |