Dycom Industries stock (NYSE: DY) surged nearly 18% Wednesday following strong third-quarter results that crushed analyst expectations and sparked a major upward revision to fiscal 2026 guidance.
The telecommunications and utility services contractor reported record revenue of $1.452 billion and diluted earnings of $3.63 per share, beating Street estimates by 13% on profit.
The company also raised its full-year revenue outlook midpoint, signaling robust demand for digital infrastructure despite broader economic uncertainty.
CEO Dan Peyovich called it “an exceptional quarter” that “reinforced industry leadership,” setting the tone for what could be a significant inflection point for the stock.
Dycom’s dramatic 18% rally reflects investor relief and enthusiasm over three converging factors: beat earnings, record backlog, and raised guidance.
The stock had already climbed steadily through the the fall, but today’s move caps a remarkable 109% gain since November 2024 lows.
At current levels, Dycom now trades at an $8.6 billion market cap, a reflection of how quickly market sentiment shifted once investors recognized the durability of the company’s growth engine.
Why did Dycom Industries’ stock skyrocket today?
The earnings surprise was substantial across multiple metrics. Q3 contract revenues climbed 14.1% year-over-year to $1.452 billion, while GAAP diluted EPS jumped 35.4% to $3.63 versus consensus expectations of $3.20.
Net income expanded 34.4% to $106.4 million, and adjusted EBITDA surged 28.5% to $219.4 million with a margin of 15.1%, up 170 basis points from the prior year quarter.
But the real eye-popper was the the backlog. Dycom reported a record $8.2 billion in backlog as of October 25, 2025, providing extraordinary visibility into future revenue.
For context, this represents roughly 1.5 years of revenue at current run rates, a fortress of work already committed.
The backlog expansion underscores just how desperate customers are for Dycom’s expertise in in deploying broadband and 5G infrastructure across America.
Management also raised the midpoint of fiscal 2026 revenue guidance to a range of $5.350 billion–$5.425 billion, implying growth of 13.8% to 15.4%.
Q4 guidance of $1.26–$1.34 billion in revenue came in line with Street expectations.
Notably, management attributed growth to “significantly higher customer demand for digital infrastructure” and execution on recent acquisitions, particularly the Black and Veatch purchase announced earlier this year.
What analysts are saying
The reaction from Wall Street has been swift and positive.
Wells Fargo maintained an “overweight” rating and raised its price target to $315, implying 1.6% upside from current levels.
DA Davidson, Raymond James, and JPMorgan have all raised their price targets following the earnings beat, with consensus now sitting at $302.63.
Analysts point to three structural tailwinds supporting Dycom’s trajectory. First, broadband infrastructure spending remains elevated.
The Broadband, Equity, Access and Deployment (BEAD) program, funded through the Infrastructure Investment and Jobs Act, has already begun deployment, with Dycom positioned as a primary beneficiary.
Second, private investment in 5G densification and fiber buildout continues accelerating as carriers upgrade networks.
Third, M&A synergies from the Black and Veatch acquisition are beginning to translate into higher margins; the adjusted EBITDA margin of 15.1% in Q3 marks meaningful expansion from prior periods.
One concern flagged by some analysts is labor availability in a tight market.
Dycom guided to 3.8%–5.1% growth contingent on workforce scalability, suggesting management sees labor as the potential constraint rather than demand.
However, the company’s track record of of managing rapid scaling (22% growth two years ago) suggests this is manageable rather than existential.
At $310, Dycom now trades at 33x forward earnings, a notable premium to its historical average but justified by the combination of record backlog, margin expansion, and a multi-year runway of BEAD-funded infrastructure deployment.
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