Quanta Services Q2 2026: revenue up 41% to $9.56B, GAAP EPS $2.96 (+95%), a record $53.4B backlog, and full-year revenue guidance raised to $39.3–39.7B.
Revenue
$9.6B
+41.1% YoY
Net income
$451M
+96.9% YoY
Diluted EPS
$2.96
+94.7% YoY
Operating margin
7.3%
Overview
Quanta Services builds and maintains the physical plumbing of the power grid: transmission lines, substations, power-plant and data-center electrical work, plus gas, pipeline and industrial infrastructure. In the second quarter of 2026 (the three months to June 30) revenue rose 41% to $9.56 billion, operating profit nearly doubled, and the company raised every line of its full-year 2026 outlook for the second quarter running. The revenue forecast went up by about $4.5 billion at the midpoint.
Two things drove it. First, plain demand: utilities and data-center developers are spending heavily on grid capacity. The 10-Q attributes the Electric segment's growth to "increased demand for our services" and its margin gain to "increased demand and improved execution across our electric and power generation services." Second, acquisitions: about $930 million of the quarter's revenue came from businesses Quanta bought over the past year (roughly $575 million in Electric, $355 million in Underground and Infrastructure). Stripping that out, revenue still grew by roughly 27%. That is our own estimate from the filing's figures, since Quanta does not report an "organic" growth number.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$9,557.0M
$6,773.0M
+41.1%
Gross margin
16.2%
14.9%
+1.3 pts
Operating income
$694.8M
$370.3M
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Operating margin is the share of revenue left after running the business, before interest and tax. Adjusted EPS and adjusted EBITDA are company-defined measures that add back items such as amortization of acquired intangible assets ($157.0M this quarter), stock-based pay ($63.4M) and deal costs ($28.5M). Free cash flow is operating cash flow ($1,095.4M) minus net capital spending ($209.5M).
Backlog: the number that matters most for a contractor
For a company like Quanta, backlog (the value of work customers have committed to but that hasn't yet been done and billed) is the best read on future revenue.
Backlog at June 30, 2026
Next 12 months
Total
Total, Dec 31, 2025
Total, June 30, 2025
Electric
$26.68B
$43.79B
$36.17B
$30.28B
Underground & Infrastructure
$5.63B
$9.65B
$7.81B
$5.56B
Total
$32.31B
$53.44B
$43.98B
$35.84B
Total backlog grew $9.5 billion in six months (+21.5% since December) to a record $53.4 billion, more than five quarters of revenue at the current run rate. The firmer part of it, remaining performance obligations (signed fixed-price and similar contracts, as opposed to estimated future orders under long-running master service agreements), rose faster still: $33.55 billion versus $19.16 billion a year earlier, up 75%. That shift toward signed contracts makes the backlog more dependable, and $32.3 billion of the total is expected to turn into revenue within 12 months. Some of the jump comes from acquired companies' order books, which the filing does not separate out, so not all of it is newly won business.
Segment performance
Segment
Revenue Q2 2026
Revenue Q2 2025
Change
Op. margin Q2 2026
Op. margin Q2 2025
Electric
$7,837.8M
$5,458.1M
+43.6%
11.5%
10.1%
Underground & Infrastructure
$1,719.2M
$1,314.9M
+30.7%
9.1%
6.9%
Corporate & non-allocated costs
n/a
n/a
n/a
($359.2M)
($273.0M)
Electric (82% of revenue) is where the story is. Of its $2.38 billion revenue increase, about $575 million came from acquisitions, so the remaining ~$1.8 billion (roughly +33%) is growth from existing operations. Segment operating profit rose 63% to $898.2 million.
Underground & Infrastructure (gas utilities, pipelines, industrial and civil work) looks strong on the surface but is almost entirely bought growth. The 10-Q says the revenue increase was "primarily due to approximately $355 million in revenues attributable to acquired businesses," which leaves the existing business up only about 4%. For the first half, the filing also notes "lower revenues from large pipeline projects in the United States." Margin improved because the acquired civil and mechanical businesses spread fixed costs over more revenue.
Corporate costs rose $86 million, mostly from a $43.8 million increase in amortization of acquired intangibles (a non-cash accounting charge that gradually writes off the value of customer relationships and similar assets bought in acquisitions, including Dynamic Systems) and $28.2 million more compensation expense, mostly stock-based.
Where GAAP and adjusted earnings diverge
GAAP EPS (+95%) grew faster than adjusted EPS (+71%). Adjusted EPS adds back acquisition-related costs, and those add-backs were proportionally larger last year relative to profit, so the adjusted figure starts from a higher base. A slightly lower tax rate (25.5% vs. 26.7%, which the filing attributes to the mix of earnings across jurisdictions) also helped GAAP net income. Note that the adjusted figure excludes real, recurring costs of Quanta's buy-and-build strategy ($157 million of intangible amortization and $63 million of stock pay this quarter), so anyone comparing Quanta with less acquisitive peers should look at both measures.
Cash, acquisitions and the balance sheet
Operating cash flow was $1.10 billion in the quarter versus $296 million a year earlier. Part of that is timing: contract liabilities (cash customers paid ahead of the work) rose from $3.26 billion at year-end to $4.24 billion, which the 10-Q attributes "primarily" to "an increase in favorable billing terms on certain large projects." Advance billing helps cash now but reverses as the work is performed, so this quarter's cash flow overstates the underlying pace. Days sales outstanding (how long it takes to collect revenue as cash) was 57 days versus 62 a year earlier and a five-year average of 71.
During the quarter and in July, Quanta bought four companies: Phalcon (electrical contractor in the Northeast and Mid-Atlantic, ~4,100 employees), Enerfab (fabrication and industrial services, ~2,100 employees), Percheron (land, surveying and engineering services) and PSD (an Australian maker of transportable substation buildings). Upfront consideration was about $1.24 billion (roughly $1.07 billion cash and $173 million of stock), plus up to $242 million in performance-based payments. Management expects them to add $1.2–1.4 billion of revenue and $120–140 million of adjusted EBITDA in 2026. The deals were funded with borrowings and cash; total debt stood at about $6.1 billion against $506 million of cash at June 30. Moody's upgraded Quanta's senior unsecured rating to Baa2 from Baa3 in June, and the board authorized a new $1 billion share buyback in May.
Takeaway: The backlog is the headline, not the earnings beat. Signed contract obligations rose 75% year on year to $33.6 billion and total backlog added $9.5 billion in six months, so the raised 2026 guidance rests on work already under contract. The caveats: a meaningful slice of both revenue and backlog growth was purchased, and the non-electric segment is barely growing on its own.
Outlook
Quanta raised its full-year 2026 guidance across the board:
2026 guidance
After Q1 (April)
After Q2 (July)
Revenue
$34.7–35.2B
$39.3–39.7B
Net income attributable to common stock
$1.40–1.50B
$1.74–1.82B
Diluted EPS (GAAP)
$9.17–9.87
$11.41–11.92
Adjusted diluted EPS
$13.55–14.25
$16.45–16.95
Adjusted EBITDA
$3.49–3.65B
$4.09–4.21B
Operating cash flow
$2.35–2.85B
$2.90–3.40B
Of the ~$4.5 billion increase in the revenue midpoint, $1.2–1.4 billion is the newly closed acquisitions; the rest is a higher forecast for the existing business. The new midpoint implies about $22 billion of revenue in the second half versus $17.4 billion in the first, which fits with the $32.3 billion of backlog expected to convert within a year plus the usual summer-and-fall peak in construction activity.
Our read: the near-term trajectory is well supported by contracted work, and Electric margins at 11.5% show pricing and execution holding up while volumes grow quickly. Things to watch in the third quarter: (1) whether Electric margins hold as acquired companies with different margin profiles are folded in, (2) how much of the next backlog increase is organic, and (3) whether the advance-billing boost to cash flow starts to unwind.