Sands Capital cited PWR as a top contributor amid strong fundamentals and AI-driven infrastructure demand in Q1 2026.
Quanta Services (PWR) outperformed in Q1 2026, driven by robust earnings and improved guidance, according to Sands Capital’s Select Growth Strategy investor letter. The company benefited from rising demand for AI-related infrastructure, which shifted capital toward asset-heavy sectors with lower disruption risk.
U.S. large-cap growth stocks declined in the quarter, with the Russell 1000 Growth Index falling 9.8%. Sands Capital’s Select Growth Strategy underperformed, returning -12.9%, as markets favored capital-intensive sectors over asset-light, high-growth businesses. Geopolitical tensions late in the quarter triggered a broad risk-off move.
Despite market volatility, corporate fundamentals remained strong, with AI investments increasing dispersion and supporting infrastructure-linked stocks like PWR. The strategy’s underweights in cyclical and defensive sectors slightly hurt relative performance.