Dycom Industries (NYSE:DY) Announces Earnings Results, Beats Expectations By $0.37 EPS

Dycom Industries (NYSE:DY) issued its quarterly earnings results on Wednesday. The construction company reported $2.03 EPS for the quarter, topping analysts’ consensus estimates of $1.66 by $0.37, FiscalAI reports. The business had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.34 billion. Dycom Industries had a return on equity of 22.21% and a net margin of 5.75%.Dycom Industries’s quarterly revenue was up 34.4% compared to the same quarter last year. During the same period last year, the company posted $1.17 earnings per share. Dycom Industries updated its Q1 2027 guidance to 2.570-2.90 EPS.

Here are the key takeaways from Dycom Industries’ conference call:

• Dycom reported record results with Q4 revenue of $1.46 billion and FY2026 revenue of $5.55 billion, posted adjusted EBITDA margin expansion to 13.3% for the year, and guided FY2027 revenue to $6.85–$7.15 billion with continued margin improvement.
• The acquisition of Power Solutions closed Dec. 23, 2025, integration is on schedule, and Dycom expects Building Systems revenue of $1.15–$1.25 billion in FY2027 with mid‑teens adjusted EBITDA margins and early cross‑sell opportunities into data centers.
• Backlog finished at a record $9.542 billion (with $6.358 billion expected to convert in the next 12 months), supported by accelerating fiber‑to‑the‑home demand, BEAD verbal awards that management expects to convert to contracts in Q1/Q2, and growing long‑haul/middle‑mile hyperscaler opportunities.
• Pro forma net leverage was ~2.3x post‑close with management targeting ~2.0x net leverage within ~12 months while maintaining $709.2 million cash (total liquidity $1.46 billion) and strong free cash flow of $435.3 million, though the Power Solutions deal required sizable near‑term financing.
• Management expects revenue headwinds from the wireless equipment replacement program, forecasting roughly a $100 million decline in FY2027 (with a further step‑down in FY2028), and Q4 margins were pressured by severe winter weather and upfront workforce investments.

Dycom Industries Stock Performance

Shares of Dycom Industries stock traded down $20.77 during trading on Wednesday, hitting $382.72. 374,367 shares of the company’s stock traded hands, compared to its average volume of 365,516. The company has a debt-to-equity ratio of 0.62, a current ratio of 3.09 and a quick ratio of 2.90. Dycom Industries has a 1 year low of $131.37 and a 1 year high of $445.52. The stock has a market capitalization of $11.08 billion, a P/E ratio of 37.67, a PEG ratio of 1.38 and a beta of 1.34. The business has a 50-day simple moving average of $380.94 and a 200-day simple moving average of $325.99.

Insiders Place Their Bets

In other Dycom Industries news, Director Eitan Gertel sold 3,645 shares of the company’s stock in a transaction dated Friday, January 9th. The shares were sold at an average price of $345.62, for a total transaction of $1,259,784.90. Following the transaction, the director owned 15,997 shares in the company, valued at approximately $5,528,883.14. This represents a 18.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 3.72% of the company’s stock.

Institutional Investors Weigh In On Dycom Industries

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Hollencrest Capital Management bought a new stake in Dycom Industries during the fourth quarter valued at about $229,000. Smartleaf Asset Management LLC grew its position in shares of Dycom Industries by 12.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 650 shares of the construction company’s stock worth $223,000 after purchasing an additional 73 shares in the last quarter. Atom Investors LP bought a new stake in Dycom Industries during the 4th quarter valued at approximately $222,000. Blair William & Co. IL purchased a new position in Dycom Industries in the 4th quarter worth approximately $202,000. Finally, Headlands Technologies LLC bought a new position in Dycom Industries in the 2nd quarter worth approximately $175,000. Hedge funds and other institutional investors own 98.33% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have commented on DY shares. Zacks Research lowered shares of Dycom Industries from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 17th. B. Riley Financial raised their price target on shares of Dycom Industries from $320.00 to $420.00 and gave the stock a “buy” rating in a research note on Friday, November 21st. DA Davidson lifted their price target on shares of Dycom Industries from $300.00 to $390.00 and gave the stock a “buy” rating in a report on Thursday, November 20th. KeyCorp reissued an “overweight” rating on shares of Dycom Industries in a report on Tuesday, January 27th. Finally, Guggenheim started coverage on Dycom Industries in a research note on Thursday, January 22nd. They issued a “buy” rating and a $510.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Dycom Industries has a consensus rating of “Moderate Buy” and a consensus price target of $406.20.

Key Stories Impacting Dycom Industries

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Q4 beat and operational strength — Dycom reported fiscal Q4 EPS of $2.03 (above estimates) and ~34% year‑over‑year revenue growth; management highlighted record Q4 results and record free cash flow, showing strong execution. Dycom Industries (DY) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Data-center growth and strategic M&A — Management cited accelerating entry into the high-growth data-center market and completed the Power Solutions acquisition to support that push; some coverage calls data-center demand “off the charts,” a potential multi-year revenue driver. Dycom Industries Reports Fiscal 2026 Fourth Quarter and Annual Results and Provides Fiscal 2027 Outlook
• Neutral Sentiment: FY/FQ1 guidance is mixed — Dycom set FY2027 revenue of $6.9–$7.2B (consensus ~$6.9B) and Q1 EPS guidance of $2.57–$2.90 (street ~$2.67). The top end of guidance suggests upside, but the low end sits below consensus, leaving near-term sentiment uncertain. Press Release — FY2027 Outlook
• Neutral Sentiment: Longer-term catalysts remain — Analysts and previews flagged BEAD broadband program ramp and continued contract revenue growth as multi-year catalysts, but timing and margin conversion can lag, so upside depends on execution. Dycom earnings loom with BEAD program ramp in view
• Negative Sentiment: Investor profit-taking and a large holder exit — The stock pulled back despite the beat; reports note SouthernSun exited a long-term holding in Dycom, which can pressure sentiment when coupled with recent strong share performance. Here’s Why SouthernSun Decided to Exit Its Long-Term Holding in Dycom Industries (DY)
• Negative Sentiment: Valuation and near-term guidance risk — DY trades at a elevated P/E (~39) after the run-up; any perceived conservatism in near-term guidance or slower margin progress could prompt further short‑term selling. Earnings and guidance summary

Dycom Industries Company Profile

Dycom Industries, Inc (NYSE: DY) is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom’s services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom’s customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.