Dycom Industries announces varied Q3 performance; begins Q4 guidance and revises full-year forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy DY?
Source: SeekingAlpha
Q3 Financial Performance: Dycom Industries reported a Q3 Non-GAAP EPS of $2.68, missing expectations by $0.53, while revenue reached $1.45 billion, exceeding estimates by $40 million and reflecting a 14.2% year-over-year increase.
Record Financial Metrics: The company achieved a record Adjusted EBITDA of $219.4 million, up 28.5%, and strong operating cash flows of $220 million, alongside a record backlog of $8.2 billion as of October 25, 2025.
Fiscal 2026 Revenue Outlook: Dycom is increasing the midpoint of its fiscal 2026 revenue outlook to a range of $5.350 billion to $5.425 billion, indicating a growth of 13.8% to 15.4% over the previous year, with an additional operational week due to the fiscal calendar.
Fourth Quarter Projections: For the quarter ending January 31, 2026, the company anticipates contract revenues between $1.26 billion and $1.34 billion, with Non-GAAP Adjusted EBITDA expected to be between $140 million and $155 million, and diluted earnings per share projected at $1.30 to $1.65.
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Analyst Views on DY
Wall Street analysts forecast DY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DY is 385.67 USD with a low forecast of 320.00 USD and a high forecast of 426.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 376.240
Low
320.00
Averages
385.67
High
426.00
Current: 376.240
Low
320.00
Averages
385.67
High
426.00
About DY
Dycom Industries, Inc. is a provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. These services include program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. The Company also provides electrical contracting services for data centers and other vital industries, underground facility locating services for various utilities, including telecommunications providers, as well as other construction and maintenance services for electric and gas utilities. The Company provides engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems that extend from the telephone company hub location, or cable operator headend, to a consumer’s home or business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Competitive Advantage: With over a decade of experience in large-scale fiber deployment and diversified end-market exposure, Dycom holds an edge over smaller contractors, especially with government incentives driving rural deployments.
- Earnings Outlook: Dycom's earnings estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days, with projected year-over-year growth rates of 26.9% and 35%, indicating strong market demand and growth potential for the company.
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- Market Reaction Uncertainty: The uncertainty surrounding tariff policies may induce panic among investors, leading to increased volatility in stock markets, particularly in sectors that trade heavily with NATO member countries.
- Diplomatic Tensions: This move could exacerbate diplomatic tensions between the U.S. and NATO allies, potentially impacting future military and economic cooperation and posing risks to global security dynamics.
- Economic Impact Assessment: Should tariffs be enacted, they may negatively affect economic growth in both the U.S. and NATO member countries, particularly in nations with high trade dependencies, potentially resulting in economic slowdowns and rising unemployment rates.
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- Market Reaction Uncertainty: The uncertainty surrounding tariff policies may lead investors to worry about the economic outlook of affected countries, resulting in stock market volatility and capital outflows that could hinder global economic growth.
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