Dycom Industries 2026 Q3 Earnings Strong Performance with 52.4% Net Income Growth

Dycom Industries (DY) reported robust fiscal 2026 Q3 results, surpassing expectations with a 14.1% revenue increase and a 52.4% surge in net income. The company raised its full-year revenue guidance, signaling confidence in sustained demand for digital infrastructure.

Revenue

Dycom’s total revenue climbed to $1.45 billion in Q3 2026, a 14.1% year-over-year increase from $1.27 billion in 2025 Q3. This growth was driven by strong performance in contract services, reflecting heightened demand for fiber-to-the-home builds, data center, and wireless infrastructure. The company’s total revenue aligns with its strategic focus on expanding digital infrastructure capabilities.

Earnings/Net Income

Earnings per share (EPS) surged 53.6% to $3.67 in Q3 2026, up from $2.39 in the prior-year period. Net income also rose sharply to $106.36 million, a 52.4% increase from $69.79 million. The significant improvement in profitability underscores Dycom’s operational efficiency and strong execution in high-growth markets.

Price Action

Following the earnings release, DY’s stock experienced mixed short-term price action: a 3.30% decline in the latest trading day, but a 14.39% gain over the past week and 11.40% month-to-date. The stock’s volatility reflects investor reactions to both earnings results and broader market dynamics.

Post-Earnings Price Action Review

The strategy of purchasing DY following a revenue beat and holding for 30 days appears promising, supported by Dycom’s recent outperformance. The company’s Q3 EPS of $3.63 exceeded expectations, while revenue growth, though slightly below forecasts, demonstrated resilience. Market confidence was bolstered by Dycom’s $1.95 billion acquisition of Power Solutions, a data-center electrical contractor, which signals long-term positioning in AI-driven infrastructure. Historically, Dycom’s stock has shown positive momentum post-earnings, though risks such as integration challenges and macroeconomic shifts remain. Investors adopting this strategy should monitor execution progress and market sentiment.

CEO Commentary

CEO Daniel Peyovich highlighted record Q3 performance, including $1.45 billion in revenue, $219 million in adjusted EBITDA, and $3.63 EPS. The acquisition of Power Solutions is expected to accelerate Dycom’s role in data-center and AI infrastructure, with immediate accretion to EBITDA and EPS. Peyovich emphasized the company’s $8.2 billion backlog and $500 million in BEAD-related awards as catalysts for sustained growth.

Guidance

Dycom raised its full-year 2026 revenue guidance to $5.35 billion–$5.425 billion, reflecting 13.8%–15.4% year-over-year growth. Q4 revenue is projected at $1.26 billion–$1.34 billion, with adjusted EBITDA of $140 million–$155 million and diluted EPS of $1.30–$1.65. The Power Solutions acquisition is anticipated to close in Q4, with deleveraging targeted to 2x net leverage within 12–18 months.

Additional News

Dycom’s $1.95 billion acquisition of Power Solutions, a Mid-Atlantic data-center electrical contractor, marks a strategic expansion into high-growth infrastructure markets. The deal, funded by $293 million in Dycom stock and the remainder in cash, adds $1 billion in annual revenue and 2,800 skilled employees. CEO Dan Peyovich emphasized the acquisition’s alignment with AI and cloud infrastructure demand, with Power Solutions’ expertise in data-center electrification complementing Dycom’s existing capabilities. The combined entity aims to leverage a $20 billion addressable market for outside plant data-center networks, with immediate accretion to EBITDA and EPS.

The acquisition is expected to strengthen Dycom’s backlog, which reached $8.2 billion as of October 2025, and position the company to capitalize on U.S. fiber/HFC infrastructure spending exceeding $26 billion over four years.

Dycom Industries, Inc. (DY) has demonstrated resilience in navigating digital infrastructure demand, with strategic acquisitions and operational execution driving both revenue and profitability. The company’s forward-looking guidance and market positioning suggest continued growth potential amid expanding AI and cloud infrastructure needs.