Dycom Industries 2026 Q2 Earnings Misses Targets, Net Income Surges 42.5%

Dycom Industries (DY) reported fiscal 2026 Q2 earnings on August 21st, 2025. While the company posted strong net income growth and beat adjusted EBITDA estimates, its revenue and guidance fell short of market expectations, contributing to mixed investor reactions.

Revenue
Dycom Industries reported total contract revenues of $1.38 billion in Q2 2026, reflecting a 14.5% year-over-year increase. This performance, however, came in below the $1.41 billion analysts had anticipated. The company’s primary revenue stream came from its contract operations, which accounted for the full $1.38 billion in total reported revenue, demonstrating continued strength in its core services. Despite the revenue miss, the year-over-year growth highlights ongoing demand for the company's infrastructure solutions.

Earnings/Net Income
Dycom’s earnings per share (EPS) rose 43.4% year-over-year to $3.37, and net income climbed to $97.48 million in Q2 2026, a 42.5% increase from the prior year. These figures underscore the company’s improved profitability and efficient cost management.

Price Action
Dycom’s stock edged up 1.23% in the latest trading day but declined 2.15% over the full trading week. Month-to-date, the stock has gained 3.76%, reflecting a moderate level of investor interest amid the earnings report.

Post-Earnings Price Action Review
A historical backtest of the strategy to buy Dycom shares following a revenue beat and hold for 30 days returned an impressive 139.55% over the past three years. This outperformed the benchmark return of 53.84%, with an excess return of 85.71%. While the strategy showed a high volatility of 40.05% and a Sharpe ratio of 0.88, the compound annual growth rate (CAGR) of 35.14% highlights its consistent performance. The strategy also recorded a maximum drawdown of 0.00%, indicating resilience in challenging market conditions.

CEO Commentary
Daniel S. Peyovich, Dycom’s CEO, emphasized the company’s record Q2 revenue of $1.38 billion and a 29.8% increase in adjusted EBITDA to $205.5 million. He cited operational efficiency and expanding market opportunities as key drivers. Peyovich also noted a 9-day improvement in DSOs to 108 days and strong backlog growth, with total backlog at $8 billion. He expressed confidence in AI-driven data center growth and fiber-to-the-home expansion, calling them “generational” opportunities.

Guidance
Dycom reaffirmed its full-year 2026 revenue guidance of $5.29–$5.425 billion and provided Q3 2026 guidance of $1.38–$1.43 billion in revenue, $198–$213 million in adjusted EBITDA, and $3.03–$3.36 in diluted EPS. The company expects continued momentum in fiber-to-the-home, wireless, and hyperscaler-related projects.

Additional News
Shares of Dycom (DY) fell 8.5% in the afternoon session following its mixed Q2 2025 results. Although the company beat EBITDA estimates, its $1.38 billion in contract revenues fell short of the $1.41 billion estimate. Furthermore, Q3 revenue guidance of $1.41 billion was below the $1.46 billion Wall Street had expected, dampening investor sentiment. Despite the drop, Dycom’s stock remains up 41.7% year-to-date, and long-term investors have seen significant gains over the past five years. The decline occurred amid broader market weakness, with major indices also retreating from record highs.