This S&P 500 AI Data Center Play Eyes New Highs On Earnings; 20% Profit Growth Expected

Quanta Services (PWR) rose before Thursday’s stock market open as the S&P 500 AI data center-adjacent play topped fourth-quarter estimates and projected 20% profit growth in 2026.

The company early Thursday reported Q4 EPS grew 7.5% to $3.16 with revenue totaling $7.84 billion, up 20% vs. a year ago. Before the earnings release, analysts forecast earnings of $3.02 per share and sales coming in at $7.36 billion, according to FactSet.

Over the past four quarters, both earnings and revenue growth remain right around the 20%-25% rate.

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For 2026, Quanta Services expects revenue to range between $33.25 billion and $33.75 billion with adjusted diluted earnings per share of $12.65 to $13.35 per share. This represents about 20% profit growth compared to 2025.

The heavy-construction company builds electric plants and provides other services for the power grid.

The need for artificial intelligence compute capacity is fueling a boom in data centers, which require massive amounts of electricity. In addition, some companies are shifting manufacturing into the U.S., resulting in more factory construction.

“Quanta closed 2025 with another strong quarter, delivering double-digit year-over-year growth in revenue and adjusted EBITDA, while achieving record fourth-quarter and full-year results across multiple key financial metrics,” CEO Duke Austin said in the earnings release.

Austin added that the backlog at the end of 2025 was at a record $44 billion, “reflecting accelerating demand” in the company’s “electric segment and sustained activity across our end markets, which positions us well heading into 2026.”

“The convergence of utility, power generation, and large-load industries continues to create significant opportunities, and our collaborative infrastructure solutions and proven execution capabilities position Quanta as a trusted partner for our customers’ most critical programs,” Austin said Thursday.

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S&P 500: Quanta Services Stock Performance

PWR stock roared more than 5% higher before the stock market open on Thursday, on pace to hit a record high. Quanta Services ended Wednesday down 1% to 519.31.

The stock advanced out of a buy zone from a traditional 473.99 buy point from a flat base, according to MarketSurge charts, on Feb. 6.

Quanta Services stock bottomed at 408.36 on Jan. 8. Since then, the S&P 500 component has rallied 27%.

The S&P 500 stock is up more than 23% already this year. In the 2025 stock market, PWR advanced 33.5%.

The 27 stocks in the IBD-tracked Building-Heavy Construction industry group have collectively advanced 22.6% this year. That ranks the group 20th out of the 197 industries tracked by IBD.

The S&P 500 stock has a robust 97 Composite Rating out of a best-possible 99. Quanta Services stock also has an 89 Relative Strength Rating and a near-perfect 97 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

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