PWR · Q2 2026 Earnings

Bullish

Quanta Services

Reported July 30, 2026

30-second summary

Quanta delivered Q2 revenue of $9.56B (+41.1% YoY, +11.2% above consensus) and adjusted EPS of $4.24 (+28.5% above the $3.30 consensus), and used the print to reset FY2026 guidance materially higher across every line — revenue midpoint +$4.55B (+13.0%) to $39.3–$39.7B, adjusted EPS midpoint +$2.80 (+20.1%) to $16.45–$16.95, and free cash flow midpoint +$450M (+25%) to $2.00–$2.50B. Total backlog jumped to a record $53.4B (+$4.9B QoQ) and RPO to $33.6B (+$7.4B QoQ), and the RPO-to-total gap that was widening at Q1 finally reversed — firm contract conversion outran LNTP accumulation this quarter. Electric segment margin printed 11.5%, above the FY guide bar and confirming the "compounder" pitch from Q4 has substance behind it.

Headline numbers

EPS

Q2 FY2026

$4.24

+28.5% vs est.

Revenue

Q2 FY2026

$9.56B

+41.1% YoY

+11.2% vs est.

Gross margin

Q2 FY2026

16.2%

Free cash flow

Q2 FY2026

$0.89B

Operating margin

Q2 FY2026

7.3%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$9.56B	$6.77B	+41.1%	$7.87B	+21.5%
EPS	$4.24	$2.48	+71.0%	$2.68	+58.2%
Gross margin	16.2%	14.9%	+132bps	14.1%	+214bps
Operating margin	7.3%	5.5%	+183bps	4.3%	+300bps
Free cash flow	$0.89B	$0.17B	+421.2%	$0.18B	+380.5%

Guidance

Quanta significantly raised full-year FY2026 guidance across all metrics (revenue +13%, adj. EPS +21%, adj. EBITDA +17%), driven by acquisition integration, strong Q2 beat (revenue +11.2%, adj. EPS +28.5% vs. consensus), and record backlog of $53.4B.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	—	$9.56 billion	+$0.97 billion above consensus estimate of $8.59B (+11.2%)	Beat
Adjusted Diluted EPS	Q2 FY2026	—	$4.24	+$0.94 above consensus estimate of $3.30 (+28.5%)	Beat

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2026	$34.7 billion to $35.2 billion	$39.3 billion to $39.7 billion	+$4.6-4.5 billion (+13.2-12.8%)	Raised
Diluted EPS (GAAP)	FY 2026	$9.17 to $9.87	$11.41 to $11.92	+$2.24-2.05 (+24.4-20.8%)	Raised
Adjusted Diluted EPS	FY 2026	$13.55 to $14.25	$16.45 to $16.95	+$2.90-2.70 (+21.4-18.9%)	Raised
EBITDA	FY 2026	$3.20 billion to $3.36 billion	$3.74 billion to $3.86 billion	+$0.54-0.50 billion (+16.9-14.9%)	Raised
Adjusted EBITDA	FY 2026	$3.49 billion to $3.65 billion	$4.09 billion to $4.21 billion	+$0.60-0.56 billion (+17.2-15.3%)	Raised
Net Income (attributable to common stock)	FY 2026	$1.40 billion to $1.50 billion	$1.74 billion to $1.82 billion	+$0.34-0.32 billion (+24.3-21.3%)	Raised
Operating Cash Flow	FY 2026	$2.35 billion to $2.85 billion	$2.90 billion to $3.40 billion	+$0.55-0.50 billion (+23.4-17.5%)	Raised
Free Cash Flow	FY 2026	$1.55 billion to $2.05 billion	$2.00 billion to $2.50 billion	+$0.45-0.45 billion (+29.0-22.0%)	Raised

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Electric	$7.838B	—	+43.5%
Underground and Infrastructure	$1.719B	—	+30.7%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Adjusted EBITDA	$1.1 billion	$668.8 million	—
Total Backlog	$53.4 billion	$35.8 billion	—
Remaining Performance Obligations (RPO)	$33.6 billion	$19.2 billion	—
Operating Cash Flow	$1.1 billion	—	—
Electric Segment Operating Margin	11.5%	10.1%	—
Underground and Infrastructure Operating Margin	9.1%	—	—

Management tone

No transcript was available for this quarter; tone analysis is limited to press-release language and cannot reflect prepared remarks or Q&A commentary.

Q4 25 → Q1 26 → Q2 26 narrative arc: "Compounder of profitable growth, just getting started" → "20-quarter framework to double earning power by 2030" → "Significantly increasing expectations across all metrics."

The press-release language this quarter — "significantly increasing our full-year 2026 financial expectations across all metrics" — is the strongest quantitative commitment management has made in three quarters. Two quarters ago the framing was qualitative ("compounder"); last quarter it was a 5-year framework with no interim milestones; this quarter it is a hard $4.55B revenue and $2.80 adj. EPS midpoint raise on a single quarter's disclosure. The escalation cadence itself is the signal: management is not staggering the reset across multiple quarters, they are pricing it in now.

The reiteration of "the power of our differentiated, solutions-based operating model" combined with the explicit acknowledgment of "the expected contribution from recently completed acquisitions that strengthen our platform" suggests the guide raise decomposes into two roughly comparable pieces — organic execution and acquired revenue — but the release does not decompose it explicitly. Last quarter's disclosure that acquisitions contributed $0.40–$0.50 to adj. EPS at midpoint was a helpful transparency baseline that appears not to have been repeated for the Q2 raise. Without the split, investors cannot cleanly assess whether the ~$1.80 of organic EPS growth Quanta committed to at Q1 has held or accelerated.

The absence of transcript commentary makes it impossible to evaluate whether management extended the 20-quarter framework with any interim milestones this quarter — the specific watch item flagged last quarter. The Q3 print will be the first opportunity to reassess.

Answers to last quarter's watch list

Q2 Electric segment op margin recovering toward the FY guide midpoint — Q2 Electric printed 11.5%, well above the old 10.3% FY midpoint and above the Q4 FY25 print of 10.8%. The recovery was decisive, not marginal — Q1's 8.7% was pure seasonality, and the FY guide is now clearly de-risked (and effectively raised via the new adj. EBITDA guide). Status: Resolved positively

First material generation backlog booking from the NiSource $5.7B pipeline — Total backlog grew $4.9B QoQ and RPO grew $7.4B QoQ, but the press release does not break out generation-specific bookings or NiSource-specific conversion. The magnitude of the RPO jump ($7.4B QoQ vs. Q1's $2.4B and Q4's $2.8B) suggests something material converted, but without segment or project disclosure it cannot be attributed to the NiSource CCGT pipeline specifically. The Q3 print or the transcript (when available) is needed to confirm. Status: Continue monitoring

RPO-to-total-backlog gap — Gap narrowed to $19.8B from Q1's $22.3B (RPO +$7.4B, total +$4.9B). Firm contract conversion outran LNTP accumulation this quarter, which is the constructive read on the metric — and reverses the widening trend that had run through Q3, Q4, and Q1. Status: Resolved positively

Underground segment margin reversion — Q2 printed 9.1%, up 160bps from Q1's 7.5% and above the 8%+ threshold. The "double-digit" forward claim still has not been proven at the print level, but the trajectory is clearly moving in that direction. Status: Resolved positively

Free cash flow conversion pace — Q2 FCF of $886M crushed the $300M threshold and dwarfed Q1's $184M. FY FCF guide raised 25% at midpoint to $2.00–$2.50B, so the bar itself moved up, but YTD FCF of ~$1.07B against the new $2.25B midpoint implies H2 needs $1.18B — well below the pre-raise implied bar and consistent with normal H2 conversion. Status: Resolved positively

20-quarter doubling framework: interim milestone disclosure — No transcript was available this quarter, so no evidence of interim milestones can be assessed. The press release did not introduce new multi-year framing beyond the FY26 raise. Status: Continue monitoring

What to watch into next quarter

Organic vs. acquisition decomposition of the $4.55B revenue raise: the press release attributes the raise to a mix of acquisitions and organic momentum but does not split them. Watch Q3 prepared remarks (transcript-dependent) for a bridge — anything showing organic contribution meaningfully above the $1.80 implied Q1 organic EPS bar would be structurally bullish; anything showing acquisitions doing most of the lift would mean the underlying business is running roughly in line with the Q1 guide, not dramatically above it.

Electric segment margin sustaining above 11%: Q2 printed 11.5%, above the old 10.3% FY bar. Watch whether Q3 holds 11%+ — sustained double-digit-plus margins on the now-$39.5B revenue base is the structural underwriting for the FY26 adj. EBITDA of $4.15B midpoint and the multi-year 20-quarter framework.

Underground crossing 10%: Q2 printed 9.1% after Q1's 7.5% and the "double-digit" forward claim from management. Q3 above 10% would validate the claim; another sub-10% print would suggest the segment is running in the high-single-digit range structurally, not double-digit.

RPO-to-total gap trend: the gap narrowed for the first time in four quarters. Watch whether Q3 continues the narrowing (firm conversion momentum) or reverts to widening (LNTPs re-accumulating). Continued narrowing supports the "programmatic contracts firming" narrative.

Generation/CCGT-specific backlog disclosure: the NiSource $5.7B pipeline was flagged for H2 2026 conversion. Watch whether Q3 (with transcript) provides specific generation bookings — a first material CCGT backlog line item de-risks the 2027–2029 generation revenue ramp.

12-month RPO update: Q1 introduced 12-month RPO at $18.0B. Watch whether Q3 discloses an updated 12-month RPO figure and how it scales with the new total RPO of $33.6B — this is the cleanest near-term revenue visibility metric and it needs to be tracked quarterly for the disclosure to have analytical value.

Sources

Quanta Services Q2 2026 press release (Exhibit 99.1), SEC filing dated July 30, 2026 — https://www.sec.gov/Archives/edgar/data/1050915/000119312526324855/d56853dex991.htm
Tapebrief Q1 2026 PWR brief (prior-quarter guidance baseline, watch list, segment margin trajectory)
Tapebrief Q4 2025 PWR brief (multi-quarter narrative arc, initial FY26 guide baseline)
Tapebrief Q3 2025 PWR brief (backlog and margin trajectory context)

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