Dycom Industries (NYSE:DY) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Dycom Industries (NYSE:DY) issued its earnings results on Wednesday. The construction company reported $2.03 earnings per share for the quarter, beating analysts’ consensus estimates of $1.91 by $0.12, FiscalAI reports. The firm had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.34 billion. Dycom Industries had a return on equity of 22.21% and a net margin of 5.75%.The firm’s revenue for the quarter was up 34.4% compared to the same quarter last year. During the same quarter last year, the firm earned $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 Down 5.1%

Shares of DY traded down $19.70 during trading hours on Thursday, hitting $367.37. The stock had a trading volume of 195,791 shares, compared to its average volume of 377,291. Dycom Industries has a 1-year low of $131.37 and a 1-year high of $445.52. The firm has a market capitalization of $10.64 billion, a P/E ratio of 36.16, a price-to-earnings-growth ratio of 1.33 and a beta of 1.34. The firm has a 50 day simple moving average of $381.73 and a 200-day simple moving average of $326.43. The company has a debt-to-equity ratio of 0.62, a current ratio of 3.09 and a quick ratio of 2.90.

Insider Buying and Selling at Dycom Industries

In related news, Director Eitan Gertel sold 3,645 shares of Dycom Industries stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $345.62, for a total value of $1,259,784.90. Following the completion of the sale, the director owned 15,997 shares of the company’s stock, valued at approximately $5,528,883.14. This trade represents a 18.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 3.72% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dycom Industries

Several institutional investors and hedge funds have recently added to or reduced their stakes in DY. Alyeska Investment Group L.P. bought a new stake in shares of Dycom Industries in the 3rd quarter worth about $44,553,000. Price T Rowe Associates Inc. MD increased its stake in shares of Dycom Industries by 24.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 558,519 shares of the construction company’s stock valued at $188,725,000 after purchasing an additional 110,065 shares in the last quarter. Peconic Partners LLC increased its stake in shares of Dycom Industries by 2.8% during the second quarter. Peconic Partners LLC now owns 3,817,825 shares of the construction company’s stock worth $933,038,000 after purchasing an additional 105,586 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in Dycom Industries by 73.5% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 246,114 shares of the construction company’s stock valued at $71,806,000 after acquiring an additional 104,248 shares during the last quarter. Finally, HRT Financial LP acquired a new stake in Dycom Industries during the fourth quarter worth about $31,142,000. Hedge funds and other institutional investors own 98.33% of the company’s stock.

Key Stories Impacting Dycom Industries

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

• Positive Sentiment: Q4 results beat expectations — EPS $2.03 (vs. consensus ~$1.66) and revenue $1.46B, up ~34% year-over-year, demonstrating strong top- and bottom-line momentum. Zacks: Q4 Earnings
• Positive Sentiment: Record backlog ($9.54B) and record free cash flow cited in the results — supports multi-year revenue visibility from existing contracts. Blockonomi: Record Backlog
• Positive Sentiment: Strategic moves into the high-growth data center market (acquisition of Power Solutions) and management commentary highlighted “off the charts” data-center demand — a structural growth opportunity if execution continues. GlobeNewswire: Press Release
• Neutral Sentiment: Guidance is mixed: Q1 FY2027 EPS range of $2.57–$2.90 (consensus ~$2.67) and FY revenue guidance $6.9B–$7.2B — range overlaps Street estimates but leaves room for investor interpretation on near-term cadence and margins. Seeking Alpha: Guidance
• Negative Sentiment: Share-price weakness despite the beat — coverage notes the stock fell after the print, suggesting profit-taking (DY had run up into the report), sensitivity to the low end of the EPS range, or concerns about near-term margin/integration risks. MSN: Stock Reaction
• Negative Sentiment: High valuation and elevated expectations (P/E elevated after the run) make the name sensitive to any guidance nuance or execution slippage. Analysts and traders may reprice on small misses. Yahoo: Earnings Snapshot / Valuation Context

Analysts Set New Price Targets

Several equities analysts have recently commented on DY shares. Wall Street Zen raised shares of Dycom Industries from a “buy” rating to a “strong-buy” rating in a research report on Sunday, February 15th. UBS Group increased their price objective on Dycom Industries from $373.00 to $400.00 and gave the stock a “buy” rating in a report on Monday, January 12th. B. Riley Financial boosted their price target on Dycom Industries from $320.00 to $420.00 and gave the stock a “buy” rating in a research report on Friday, November 21st. Vertical Research began coverage on Dycom Industries in a report on Tuesday, December 23rd. They set a “buy” rating and a $420.00 price target on the stock. Finally, DA Davidson upped their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Dycom Industries presently has an average rating of “Moderate Buy” and an average target price of $415.20.

About Dycom Industries

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.