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Dycom Industries (DY) Up 5.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Dycom Industries (DY - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dycom Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Dycom Q3 Earnings & Revenues Surpass Estimates
Dycom reported strong third-quarter fiscal 2026 results (ended Oct. 25, 2025), with both contract revenues and quarterly earnings surpassing the Zacks Consensus Estimate, and increasing on a year-over-year basis.
In the fiscal third quarter, the company delivered strong results driven by sustained demand for fiber infrastructure, robust activity from long-standing carrier partners and accelerating demand from leading hyperscalers. EPS and adjusted EBITDA reached all-time highs. Backlog also hit a record $8.2 billion, supported by diversified bookings throughout the quarter, leading the company to raise the midpoint of its full-year revenue outlook.
Dycom also sees significant growth ahead, with expectations for substantial expansion through calendar 2027 and beyond. Leveraging its strong operational capabilities and national footprint, the company believes it is strongly positioned to capture a projected $20 billion market in outside-plant data center network construction over the next five years.
DY’s Q3 Earnings & Revenue Discussion
Dycom reported adjusted earnings per share (EPS) of $3.63, beating the Zacks Consensus Estimate of $3.15 by 15.2% and increasing 35.4% from $2.68 year over year.
Contract revenues of $1.45 billion topped the consensus mark of $1.40 billion by 3.7% and rose 14.1% year over year. Contract revenues increased 7.2% on an organic basis. Acquisitions contributed $110.9 million to contract revenues.
Operations & Backlog Details
Adjusted EBITDA increased 28.5% to $219.4 million from a year ago.
Adjusted EBITDA margin of 15.1% expanded 170 basis points from the year-ago level.
Dycom ended the fiscal third quarter with a record backlog of $8.22 billion, supported by strong and diversified bookings throughout the period. Of the backlog, $4.99 billion is projected to be completed in the next 12 months.
Financials
As of Oct. 25, 2025, DY had liquidity of $706.5 million, including cash and cash equivalents worth $110.1 million, compared with $92.6 million as of Jan. 25, 2025. Long-term debt was $919.5 million at the fiscal third-quarter end, down from $933.2 million at the fiscal 2025 end.
Dycom Acquires Power Solutions for $1.95B
Dycom announced a definitive agreement to acquire Power Solutions for $1.95 billion, adding one of the Mid-Atlantic’s premier providers of mission-critical electrical infrastructure for data centers.
The acquisition strengthens Dycom’s position in the rapidly expanding digital and AI infrastructure market and creates a fully integrated offering — from outside-plant fiber networks to electrical and low-voltage systems inside the data hall. The deal is expected to be accretive and will add more than 2,800 skilled employees to the company’s workforce, with the combined business projected to deliver roughly 2x net leverage within 12-18 months of closing.
Q4 View by Dycom
For the fiscal fourth quarter (ending on Jan. 31, 2026), DY expects $1.26 to $1.34 billion of contract revenues.
The adjusted EBITDA is expected to be between $140 million and $155 million. For the said period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.4 million. Interest expenses, net, are likely to be $13.6 million and amortization expenses are expected to be $12.7 million.
Dycom Raises FY26 Revenue Guidance
Dycom has increased the midpoint of its revenue outlook for fiscal 2026 and now expects total contract revenues to range from $5.350 billion to $5.425 billion (prior expectation was $5.290-$5.425 billion), representing a 13.8% to 15.4% year-over-year increase, driven by robust digital infrastructure growth and long-term demand drivers.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 24.34% due to these changes.
VGM Scores
At this time, Dycom Industries has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dycom Industries has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Dycom Industries (DY) Up 5.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Dycom Industries (DY - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dycom Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Dycom Q3 Earnings & Revenues Surpass Estimates
Dycom reported strong third-quarter fiscal 2026 results (ended Oct. 25, 2025), with both contract revenues and quarterly earnings surpassing the Zacks Consensus Estimate, and increasing on a year-over-year basis.
In the fiscal third quarter, the company delivered strong results driven by sustained demand for fiber infrastructure, robust activity from long-standing carrier partners and accelerating demand from leading hyperscalers. EPS and adjusted EBITDA reached all-time highs. Backlog also hit a record $8.2 billion, supported by diversified bookings throughout the quarter, leading the company to raise the midpoint of its full-year revenue outlook.
Dycom also sees significant growth ahead, with expectations for substantial expansion through calendar 2027 and beyond. Leveraging its strong operational capabilities and national footprint, the company believes it is strongly positioned to capture a projected $20 billion market in outside-plant data center network construction over the next five years.
DY’s Q3 Earnings & Revenue Discussion
Dycom reported adjusted earnings per share (EPS) of $3.63, beating the Zacks Consensus Estimate of $3.15 by 15.2% and increasing 35.4% from $2.68 year over year.
Contract revenues of $1.45 billion topped the consensus mark of $1.40 billion by 3.7% and rose 14.1% year over year. Contract revenues increased 7.2% on an organic basis. Acquisitions contributed $110.9 million to contract revenues.
Operations & Backlog Details
Adjusted EBITDA increased 28.5% to $219.4 million from a year ago.
Adjusted EBITDA margin of 15.1% expanded 170 basis points from the year-ago level.
Dycom ended the fiscal third quarter with a record backlog of $8.22 billion, supported by strong and diversified bookings throughout the period. Of the backlog, $4.99 billion is projected to be completed in the next 12 months.
Financials
As of Oct. 25, 2025, DY had liquidity of $706.5 million, including cash and cash equivalents worth $110.1 million, compared with $92.6 million as of Jan. 25, 2025. Long-term debt was $919.5 million at the fiscal third-quarter end, down from $933.2 million at the fiscal 2025 end.
Dycom Acquires Power Solutions for $1.95B
Dycom announced a definitive agreement to acquire Power Solutions for $1.95 billion, adding one of the Mid-Atlantic’s premier providers of mission-critical electrical infrastructure for data centers.
The acquisition strengthens Dycom’s position in the rapidly expanding digital and AI infrastructure market and creates a fully integrated offering — from outside-plant fiber networks to electrical and low-voltage systems inside the data hall. The deal is expected to be accretive and will add more than 2,800 skilled employees to the company’s workforce, with the combined business projected to deliver roughly 2x net leverage within 12-18 months of closing.
Q4 View by Dycom
For the fiscal fourth quarter (ending on Jan. 31, 2026), DY expects $1.26 to $1.34 billion of contract revenues.
The adjusted EBITDA is expected to be between $140 million and $155 million. For the said period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.4 million. Interest expenses, net, are likely to be $13.6 million and amortization expenses are expected to be $12.7 million.
Dycom Raises FY26 Revenue Guidance
Dycom has increased the midpoint of its revenue outlook for fiscal 2026 and now expects total contract revenues to range from $5.350 billion to $5.425 billion (prior expectation was $5.290-$5.425 billion), representing a 13.8% to 15.4% year-over-year increase, driven by robust digital infrastructure growth and long-term demand drivers.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 24.34% due to these changes.
VGM Scores
At this time, Dycom Industries has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dycom Industries has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.