Shares of Dycom Industries (DY) are surging 9.55% in pre-market trading on Wednesday following the company's impressive fiscal 2026 third-quarter results, an improved full-year outlook, and the announcement of a significant acquisition.
The specialty contracting services provider reported record contract revenues of $1.452 billion for the quarter ended October 25, 2025, marking a 14.1% increase compared to the same period last year. Dycom's GAAP diluted earnings per share (EPS) reached $3.63, significantly outperforming analyst expectations of $3.20 and representing a 35.4% year-over-year growth. The company also reported strong operating cash flows of $220.0 million and a record backlog of $8.2 billion, indicating robust future business prospects.
In light of these strong results, Dycom increased its fiscal 2026 revenue outlook, now expecting total contract revenues to range from $5.350 billion to $5.425 billion. The company's CEO, Dan Peyovich, attributed the exceptional performance to accelerating fiber builds, a significant increase in data center needs, and the anticipated arrival of the Broadband Equity, Access, and Deployment (BEAD) program. These factors have created strong demand drivers for telecommunications and digital infrastructure, positioning Dycom to capitalize on the long-term deployment of digital infrastructure across the United States.
Adding to the positive sentiment, Dycom announced a strategic acquisition of Power Solutions, a premier data center electrical contractor, for $1.95 billion. This move is expected to expand Dycom's exposure to the rapidly growing data center sector and establish a platform for long-term growth and diversification. The acquisition is anticipated to be immediately accretive to Dycom's adjusted EBITDA margin and adjusted diluted earnings per share.
The combination of strong quarterly results, raised guidance, and a strategic acquisition has investors optimistic about Dycom's future growth prospects, driving the significant pre-market stock price surge.
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