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what it is
Dycom builds and maintains the physical networks that carry your internet, phone, and more of your power.
how it gets paid
Last year Dycom Inds made $5.5B in revenue. Telecom network construction was the main engine at $3.63B, or 66% of sales.
why it's growing
Revenue grew 17.9% last year. Contract revenue in Q4 2026 was $1.458B, up 34.4%, helped by 16.6% organic growth and $95.8M from acquired businesses.
what just happened
Dycom posted EPS of $2.03, beating the $1.93 estimate while annual revenue reached $5.5B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
50/100 earnings predictability — expect surprises
38.6x trailing p/e — you're paying up for this one
18.5% return on capital — nothing to write home about
xvary composite: 66/100 — average
What they do
Dycom builds and maintains the physical networks that carry your internet, phone, and more of your power.
This business wins because telecom and power customers need crews, equipment, and local permits now, not after a contractor learns on your dime. Dycom has 15,623 employees and a $9.542 billion backlog, which is contracted work waiting to be done. Backlog (signed future work) → jobs already awarded → so what: you are buying demand that is already lined up.
How they make money
$5.5B
annual revenue · their business grew +17.9% last year
Telecom network construction
$3.63B
Telecom maintenance and engineering
$0.99B
Underground utility locating
$0.39B
Electrical services
$0.49B
The products that matter
telecom network construction and maintenance
Telecom Network Services
$5.5B revenue base
this is still the center of gravity. the core network-services business produced $5.5B in revenue, and the legacy telecom piece grew 4.2% last year.
core business
electrical contracting for data centers
Power Solutions
$1.95B acquisition
dycom paid $1.95B for this business, and the source estimate says it should add about $250M of revenue each quarter. if that holds, DY stops being only a telecom buildout story.
growth bet
underground locating and support work
Utility Locating Services
inside the $5.5B base
the reporting is thin, but this work sits inside the $5.5B revenue base and supports both telecom and electrical jobs. it is unglamorous work, which is usually where contractors make themselves useful.
support work
Key numbers
38.6x
trailing p/e
P/E (price-to-earnings ratio) → how expensive the stock is versus past profits → so what: the market is already assuming a lot, while the 18-month target shows just 11% upside.
$9.54B
backlog
Backlog (signed future work) → revenue waiting to be recognized → so what: Dycom has almost 1.7 years of annual sales sitting in the queue versus $5.5B of trailing revenue.
15.7%
operating margin
Operating margin (profit after running the business) → what each sales dollar leaves behind before interest and taxes → so what: the model is getting more efficient as volume rises.
18.5%
return on capital
Return on capital (profit generated from money invested in the business) → how productive management is with your cash → so what: this is well above mediocre contractor economics.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $920M (7% of capital)
- net profit margin 7.7% — keeps 8 cents of every dollar in revenue
- return on equity 23% — $0.23 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in DY 3 years ago → it's now worth $49,900.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Dycom posted EPS of $2.03, beating the $1.93 estimate while annual revenue reached $5.5B.
Contract revenue in Q4 2026 was $1.458B, up 34.4%, helped by 16.6% organic growth and $95.8M from acquired businesses. The quiet part out loud: acquisition help was real, but the core business still grew double digits on its own.
$1.46B
revenue
$2.03
eps
3.9%
gross margin
the number that mattered
The $9.542B backlog matters most because it is larger than 1.7 times annual revenue, which gives Dycom unusual visibility for a contractor.
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to recap, the deal closed on december 23, 2025.dycom paid $1.95 billion for the company ($1.63 billion in cash and one million shares of dycom common stock).
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power solutions is an electrical contracting business located in the mid-atlantic region.the deal is in that it has expanded dycom’s business from being a ‘‘telecom-first’’ provider of network and telecommunications services, into a diversified leader in digital infrastructure with a solid backlog of electrical systems work for data centers. power solutions should add about $250 million in revenues quarterly, and give the operating margin a boost since its adjusted ebitda (earnings before interest taxes depreciation and amortization) are typically in the mid-to-high teens.
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our estimates now reflect the addition of power solutions llc.
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for 2026, we project a 16%-17% increase in the top line coupled with an 80-100 basis point increase in the operating margin.meanwhile, after accounting for a higher share count, we are increasing our earnings per share estimate to $15.05 a share, about $2.50 a share above our previous estimate.
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our initial estimate for 2027 is earnings of $17.70 a share.
source: company earnings report, 2026
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What could go wrong
the #1 risk is Power Solutions integration and margin execution.
med
Power Solutions has to earn its price tag
dycom spent $1.95B on the deal and expects about $250M of revenue each quarter from it. if that revenue shows up without the margin benefit, the acquisition gets harder to defend.
the 2026 story leans on 16%–17% revenue growth and a 0.8–1.0 percentage-point operating-margin lift. both assumptions run through this asset.
med
customer spending is still the real fuel
dycom sells labor into broadband, wireless, utility, and data center projects. if customers slow their build plans, a $5.5B revenue base feels that fast.
this is still a field-services business. demand comes from customer capex, not recurring software checks.
med
the valuation leaves little room for a messy quarter
38.6x trailing earnings is a premium setup for a company with a 7.0% net margin and 50/100 earnings predictability.
if execution gets lumpy, the multiple does not need a collapse to hurt you. it just needs less enthusiasm.
the stock is priced for a clean handoff from a $5.5B telecom-construction base to a broader digital-infrastructure story. if integration slips, both the growth rate and the multiple take the hit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Power Solutions revenue contribution
the source estimate is about $250M each quarter. if that number starts looking soft, the acquisition story gets colder fast.
trend
operating margin improvement
the 2026 setup calls for a 0.8–1.0 percentage-point lift. that is the cleanest proof that the mix is improving, not just getting bigger.
risk
earnings volatility
a 50/100 predictability score tells you this name still comes with surprise potential. that matters more when the stock sits near its high.
calendar
next earnings update
you want the next print to show that $15.05 of expected 2026 EPS is still intact after the first full quarters with the new business.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts expect better-than-average price performance over the next 12 months.
risk profile
average
stability score 3 — this sits near the middle of the pack on risk, not in the bunker and not in the casino.
chart momentum
average
technical score 3 — the chart is constructive, but it is not sending some secret message the fundamentals are not.
earnings predictability
50 / 100
earnings predictability sits in the middle. translation: expect real execution swings, not a smooth straight line.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 195 buyers vs. 147 sellers in 4q2025. total institutional holdings: 28.2M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$294
$637
$420
current price
$466
target midpoint · +11% from current · 3-5yr high: $595 (+40% · 9% ann'l return)
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