AI Takeaway
PWR delivered strong Q1 FY2026 results with revenue surging 26.3% YoY to $7.87B and net income jumping 52.9% to $220.6M, driven by robust demand across its infrastructure services segments.
Revenue
$7.87B
++26.33% YoY
EPS (Basic)
$1.47
++51.55% YoY
Gross Margin
14.1%
++0.68% YoY
Operating Income
$338.78M
++41.70% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 26.3% YoY from $6.23B to $7.87B in Q1 FY2026, reflecting broad-based demand for infrastructure services. This top-line acceleration suggests continued momentum in utility, energy, and telecom end markets.
Source: Source: 10-Q Income Statement
Gross margin improved modestly from 13.4% to 14.1% YoY, while operating margin expanded from 3.84% to 4.30%, indicating that revenue scale is beginning to generate operating leverage even as cost of revenue rose 25.3% to $6.77B.
Source: Source: 10-Q Income Statement
Total assets grew 34.6% YoY to $25.75B, while total liabilities rose 42.4% to $16.60B. The faster growth in liabilities relative to assets and equity suggests increased use of debt financing, likely to support acquisitions or working capital needs.
Source: Source: 10-Q Balance Sheet
2 more insights available
Upgrade to unlockTotal liabilities increased 42.4% YoY to $16.60B, outpacing asset growth of 34.6% and equity growth of 21.3%. The debt-to-equity ratio stands at 1.84x, and current liabilities surged 56.8% to $9.38B, which could pressure liquidity if revenue growth slows.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.68 versus the $2.08 analyst consensus — a +28.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.87B | $6.23B | +26.33% |
Cost of Revenue | $6.77B | $5.4B | +25.34% |
Gross Profit | $1.11B | $834.04M | +32.77% |
Operating Income | $338.78M | $239.08M | +41.70% |
Net Income | $220.63M | $144.26M | +52.94% |
EPS (Basic) | $1.47 | $0.97 | +51.55% |
EPS (Diluted) | $1.45 | $0.96 | +51.04% |
SG&A Expense | $620.73M | $493.97M | +25.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.75B | $19.13B | +34.56% |
Current Assets | $10.65B | $7.83B | +36.05% |
Total Liabilities | $16.6B | $11.66B | +42.37% |
Current Liabilities | $9.38B | $5.99B | +56.78% |
Stockholders' Equity | $9.04B | $7.46B | +21.30% |
Cash & Equivalents | $364.76M | $520.56M | -29.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $391.74M | $243.2M | +61.08% |
Investing Cash Flow | $-221.41M | $-520.62M | +57.47% |
Financing Cash Flow | $-248.46M | $52.35M | -574.58% |
Share Buybacks | $0 | $118.57M | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 14.1% | 13.4% | +0.68% |
Operating Margin | 4.3% | 3.8% | +0.47% |
Net Margin | 2.8% | — | — |
ROE | 2.4% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $1.135 | — | — |
Debt to Equity | $1.836 | — | — |
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PWR's revenue grew 26.3% YoY to $7.87B in Q1 FY2026, up from $6.23B in the prior year period. This strong top-line growth reflects robust demand for infrastructure contracting services across utility, energy, and telecom end markets.
The key takeaways from PWR's Q1 FY2026 earnings are strong revenue growth of 26.3% to $7.87B, net income growth of 52.9% to $220.6M, and diluted EPS of $1.45 versus $0.96 a year ago. Operating cash flow also surged 61.1% YoY to $391.7M, demonstrating improving cash generation quality.
Yes, PWR's margins improved modestly in Q1 FY2026, with gross margin expanding from 13.4% to 14.1% and operating margin improving from 3.84% to 4.30% YoY. Net margin stood at 2.80%, which is thin but typical for infrastructure contracting businesses.
Based on the financial data, key risks include rising financial leverage with a debt-to-equity ratio of 1.84x and current liabilities surging 56.8% YoY to $9.38B, a thin net margin of 2.80% that leaves little buffer against cost overruns, and a 29.9% decline in cash to $364.8M. The rapid balance sheet expansion of 34.6% YoY also introduces integration and execution risks.
PWR's financial health shows a mixed picture: strong revenue and earnings growth with improving margins, but increasing leverage with total liabilities of $16.60B versus stockholders' equity of $9.04B. The current ratio of 1.14x and declining cash balance of $364.8M suggest adequate but not comfortable near-term liquidity.