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Key Takeaways Dycom's backlog reached $11.9 billion, up 46.5%, with a strong 2.2x book-to-bill ratio.Fiber projects and Power Solutions are expanding DY's role across the data center infrastructure ecosystem.Dycom raised fiscal 2027 revenue guidance to $7.38-$7.65 billion as AI infrastructure demand accelerates. Dycom Industries, Inc. (DY - Free Report) appears increasingly well-positioned to benefit from the convergence of Artificial Intelligence (AI), data center expansion and fiber infrastructure spending. The rapid growth of AI workloads is intensifying demand for data center capacity, while hyperscalers and other customers continue investing in the networks needed to connect these facilities with businesses and homes.

Dycom's latest results highlight the strength of this opportunity. Fiscal 2027 first-quarter contract revenues jumped 56.1% year over year to $1.96 billion, while organic growth was 24.7%. Total backlog reached a record $11.9 billion, up 46.5%, with a 2.2x book-to-bill ratio. Customers are also extending contract durations to secure Dycom's skilled workforce, providing greater visibility into future growth.

The Communications segment remains a key beneficiary of fiber-to-the-home, long-haul and middle-mile infrastructure projects. Meanwhile, Building Systems is expanding its role in the data center ecosystem. Power Solutions delivered strong first-quarter performance, and DY’s pending $275 million acquisition of National Technology Integrators is expected to add structured cabling, security and advanced audiovisual capabilities.

The strategy could create a more comprehensive offering spanning data center racks, electrical systems, fiber networks and connections to businesses and homes. Management's raised fiscal 2027 revenue outlook of $7.38-$7.65 billion further reflects confidence in the demand environment.

With AI and data center investment accelerating alongside fiber deployments, Dycom's expanding capabilities, record backlog and strategic M&A could position it to capture a larger share of America's digital infrastructure buildout.

Dycom, Quanta and Sterling: Is AI Fueling a Backlog Bonanza?Dycom is well-positioned to benefit from surging demand for AI-driven data centers, power infrastructure and fiber connectivity, alongside other market peers like Quanta Services, Inc. (PWR - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .

Quanta offers broader exposure to the power grid and energy infrastructure needed to support data center growth, while its diversified platform benefits from rising electricity demand. Sterling, meanwhile, is positioned to capitalize on data center site development and digital infrastructure construction, with backlog growth providing visibility into future projects.

Dycom stands out for its record $11.9 billion backlog and 2.2x book-to-bill ratio, supported by robust fiber-to-the-home, long-haul and middle-mile demand. Its expansion into data center electrical work through Power Solutions and the pending National Technology Integrators acquisition strengthens its end-to-end digital infrastructure capabilities. While all three companies have strong secular tailwinds, DY’s combination of fiber exposure, expanding data center capabilities and record backlog gives it a compelling growth profile as AI infrastructure investment accelerates.

DY Stock’s Price Performance & Valuation TrendShares of this specialty contracting firm have gained 15% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

Image Source: Zacks Investment Research

DY stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 23.45, as shown in the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Trend Favors DycomDycom’s earnings estimates for fiscal 2027 and fiscal 2028 have trended upward over the past 60 days to $16.35 per share and $19.95 per share, respectively. The estimated figures for fiscal 2027 and fiscal 2028 imply year-over-year growth of 36.6% and 22%, respectively.

Image Source: Zacks Investment Research

Dycom stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Dycom, Cimpress, Marcus and Flexsteel qualified a screen targeting stocks with rising cash flows.Latest quarterly cash flow per share met or exceeded the five-year average for screened stocks.Consensus earnings estimates rose 2.6-8.2% for the four companies over recent review periods. We are already into the second-quarter reporting cycle, and stocks with top-line growth and increasing profit numbers might be popular choices. But choosing stocks based on a company’s efficiency in generating cash flows can be far more rewarding.

In this regard, stocks like Dycom Industries, Inc. (DY - Free Report) , Cimpress plc (CMPR - Free Report) , The Marcus Corporation (MCS - Free Report) and Flexsteel Industries, Inc. (FLXS - Free Report) are worth buying.

This is because even a profit-making company can have a dearth of cash flow and become bankrupt while meeting its obligations if its profits are not channelized in the right direction. But a company can effectively weather any market mayhem if it has a solid cash position, as that lends a company the flexibility to make decisions, the means to invest and the fuel to run its growth engine. It is indeed the key to a company’s existence, development and success, and reveals its true financial health.

Furthermore, analyzing a company’s cash-generating efficiency holds more relevance amid uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns.

To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.

If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which, in turn, lowers its flexibility to support these moves.

However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.

Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.

Screening Parameters:To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the five-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.

In addition to this, we chose:

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.

Current Price greater than or equal to $5: This sieves out low-priced stocks.

VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.

Here are four out of the seven stocks that qualified the screening:

Dycom Industries is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.

The Zacks Consensus Estimate for fiscal 2027 earnings has improved 2.6% over the past 30 days to $16.35. DY currently has a VGM Score of B.

Cimpress plc is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. Its product offerings include business cards, brochures and websites, and e-commerce platforms, calendars, address labels, note pads and signage, among others.

The Zacks Consensus Estimate for fiscal 2026 earnings has improved 5.2% over the past 60 days to $3.81. CMPR currently has a VGM Score of A.

The Marcus Corporation engages in the lodging and entertainment industries. It operates through two segments: Movie Theatres, and Hotels and Resorts. The company's movie theatre division owns or manages screens at locations in several states, as well as a family entertainment center. Marcus' lodging division owns or manages hotels and resorts in several states.

The Zacks Consensus Estimate for Marcus Corporation’s 2026 earnings has moved northward by 8.2% to 53 cents per share over the past seven days. MCS has a VGM Score of A.

Flexsteel Industries is engaged in the design, manufacture and sale of a broad line of quality upholstered furniture for residential, commercial and recreational vehicle seating use.

The Zacks Consensus Estimate for Flexsteel Industries’ fiscal 2026 earnings has been revised upward by 2.8% to $4.78 per share in the past 60 days. FLXS has a VGM Score of A.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 13:

Ford Motor Company (F - Free Report) : This automobile giant carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.5% over the last 60 days.

Ford has a PEG ratio of 0.31 compared with 1.74 for the industry. The company possesses a Growth Score of B.

Dycom Industries, Inc. (DY - Free Report) : This company that provides specialty contracting services to the telecommunications sector carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.1% over the last 60 days.

Dycom has a PEG ratio of 0.71 compared with 1.30 for the industry. The company possesses a Growth Score of A.

Five Below, Inc. (FIVE - Free Report) : This specialty value retailer carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days.

Five Below has a PEG ratio of 1.00 compared with 2.11 for the industry. The company possesses a Growth Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Growth score and how it is calculated here.

Key Takeaways Dycom's Communications revenues rose 24.7% organically year over year to $1.57 billion in fiscal Q1.Fiber-to-the-home programs and higher long-haul and middle-mile builds drove Communications growth.Dycom expects fiscal 2027 Communications revenues of $6.03B-$6.2B and 12.6-15.8% organic growth. Dycom Industries, Inc. (DY - Free Report) is benefiting from rising fiber infrastructure activity as customers expand fiber-to-the-home networks and invest in long-haul and middle-mile builds. Broader deployment programs across multiple geographies are creating additional work opportunities, while multiyear customer plans provide a favorable backdrop for the Communications segment.

In the first quarter of fiscal 2027, Communications revenues reached $1.57 billion, reflecting organic growth of 24.7% year over year. Growth was driven by ramping fiber-to-the-home programs, higher long-haul and middle-mile fiber infrastructure builds, and expanding maintenance and operations services. Adjusted EBITDA increased 28% to $192.4 million, while the segment margin reached 12.3%. Fiber-to-the-home builds also ramped ahead of expectations during the quarter, aided by expansion into additional geographies and favorable seasonal conditions.

The demand environment extends beyond near-term project activity. Customers are pursuing multiyear fiber-to-the-home and long-haul build programs, pointing to a broader investment cycle across communications networks. Dycom is also expanding its digital infrastructure capabilities, linking outside fiber networks with data center connectivity. This wider service offering could help the company participate across more parts of the infrastructure buildout.

For fiscal 2027, Dycom expects Communications revenues of $6.03 billion to $6.2 billion, implying organic growth of about 12.6% to 15.8% from the prior year. The company also expects modest adjusted EBITDA margin improvement for the segment. With fiber-to-the-home activity ramping and long-haul and middle-mile projects adding another demand source, fiber infrastructure expansion appears positioned to remain an important factor in Dycom's growth prospects.

How Dycom Compares With Key Infrastructure RivalsDycom competes closely with MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the infrastructure construction market.

EMCOR operates across electrical and mechanical construction, building services and industrial services markets, with strong exposure to mission-critical facilities and data center construction. The company benefits from broad geographic coverage, execution capabilities and a diversified project portfolio across multiple end markets. However, EMCOR’s business remains tied to the pace of large construction projects and customer capital spending across infrastructure sectors.

Meanwhile, MasTec maintains a diversified infrastructure platform spanning communications, power delivery, clean energy, industrial construction and pipeline markets. The company's broad service offering positions it to benefit from long-term investment trends such as AI-driven data centers, grid modernization and energy infrastructure expansion. At the same time, MasTec remains exposed to variability based on project timing and execution across multiple infrastructure segments.

Dycom's specialization in communications infrastructure and fiber network deployment provides a focused advantage as broadband expansion, fiber connectivity and AI-driven data center interconnection projects continue to grow. Long-standing customer relationships and expertise in wireline network construction support its market position. However, the company's performance remains closely linked to telecommunications investment cycles and customer network spending decisions.

DY Stock’s Price Performance & Valuation TrendShares of this North America-based specialty contracting firm have gained 70.5% in the past year, outperforming the Zacks Building Products-Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

DY stock is currently trading at a discount compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 23.81, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of DYDycom’s earnings estimates for fiscal 2027 and 2028 have moved upward in the past 30 days to $16.35 and $19.95 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 36.6% and 22%, respectively.

Image Source: Zacks Investment Research

Dycom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On July 07, 2026, Dycom Industries Inc (DY) shares fell 4.1% today, currently trading at $413.15. The stock has experienced significant volatility, with a 52-we

Key Takeaways Dycom's backlog hit a record $11.9B in fiscal Q1 2027, up 46.5% year over year.DY raised fiscal 2027 revenue guidance to $7.38B-$7.65B on sustained customer demand and backlog strength.DY's backlog growth spans fiber, building systems and digital infrastructure with broader customer diversity. Dycom Industries, Inc. (DY - Free Report) is strengthening long-term revenue visibility through a growing backlog supported by broad-based demand across communications and digital infrastructure markets. A larger and more diversified project pipeline, combined with longer customer commitments, provides greater confidence in future revenue generation while reinforcing the company's multiyear growth outlook.

In the first quarter of fiscal 2027, total backlog reached a record $11.9 billion, up 46.5% year over year and 25% sequentially, representing a book-to-bill ratio of 2.2x. The backlog became more diversified across customers, demand drivers and geographies, while some customers extended contract durations to secure skilled labor for future projects. These factors improve planning visibility and support efficient resource allocation. The company also raised its fiscal 2027 revenue guidance to $7.38-$7.65 billion, up from the prior guided range of $6.85-$7.15 billion, indicating confidence in sustained customer demand.

The diversified sources of backlog growth further strengthen Dycom's long-term revenue outlook. Communications benefited from expanding fiber-to-the-home deployments, additional geographic expansion and growing long-haul fiber activity. The Building Systems business also gained momentum following the successful integration of Power Solutions, while the pending acquisition of National Technology Integrators is expected to expand the company's data center capabilities and create additional cross-selling opportunities.

Looking ahead, rising investment in fiber networks, data centers and broadband infrastructure is likely to support additional backlog growth. Combined with a diversified project portfolio, longer-duration customer commitments and an expanding digital infrastructure platform, Dycom appears well positioned to convert its growing backlog into sustainable revenue growth over the coming years.

How Dycom Compares With Key Infrastructure RivalsDycom competes closely with MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the infrastructure construction market.

EMCOR operates across electrical and mechanical construction, building services and industrial services markets, with strong exposure to mission-critical facilities and data center construction. The company benefits from broad geographic coverage, execution capabilities and a diversified project portfolio across multiple end markets. However, EMCOR’s business remains tied to the pace of large construction projects and customer capital spending across infrastructure sectors.

Meanwhile, MasTec maintains a diversified infrastructure platform spanning communications, power delivery, clean energy, industrial construction and pipeline markets. The company's broad service offering positions it to benefit from long-term investment trends such as AI-driven data centers, grid modernization and energy infrastructure expansion. At the same time, MasTec remains exposed to variability based on project timing and execution across multiple infrastructure segments.

Dycom's specialization in communications infrastructure and fiber network deployment provides a focused advantage as broadband expansion, fiber connectivity and AI-driven data center interconnection projects continue to grow. Long-standing customer relationships and expertise in wireline network construction support its market position. However, the company's performance remains closely linked to telecommunications investment cycles and customer network spending decisions.

DY Stock’s Price Performance & Valuation TrendShares of this North America-based specialty contracting firm have gained 39.2% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

DY stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.36, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of DYDycom’s earnings estimates for fiscal 2027 and 2028 have moved upward in the past 30 days to $16.35 and $19.95 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 36.6% and 22%, respectively.

Image Source: Zacks Investment Research

Dycom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It doesn't matter if you're a growth, value, income, or momentum-focused investor -- building a successful investment portfolio takes skill, research, and a little bit of luck.

How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?

Enter the Zacks Rank.

What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.

There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.

Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.

Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.

Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.

Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.

Each one of these factors is given a raw score that's recalculated every night, and then compiled into the Zacks Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."

The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.

Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.

These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.

Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.

Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.

Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.

How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.94%.

Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.

Let's take a look at Dycom Industries (DY - Free Report) , which was added to the Zacks Rank #1 list on June 9, 2026.

Based in North America, Dycom Industries Inc. is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.

For fiscal 2027, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $2.5 to $16.35 per share. DY boasts an average earnings surprise of 25%.

Earnings are forecasted to see growth of 36.6% for the current fiscal year, and sales are expected to increase 37.2%.

Even more impressive, DY has gained in value over the past four weeks, up 2.6% compared to the S&P 500's loss of 1.8%.

Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Dycom Industries should be on investors' shortlist.

If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.

Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Dycom Industries (DY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Dycom Industries is a member of our Construction group, which includes 88 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DY's full-year earnings has moved 20.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DY has gained about 44.5% so far this year. At the same time, Construction stocks have gained an average of 17.9%. This means that Dycom Industries is performing better than its sector in terms of year-to-date returns.

Orion Marine Group (ORN - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 65.1%.

The consensus estimate for Orion Marine Group's current year EPS has increased 12.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Dycom Industries is a member of the Building Products - Heavy Construction industry, which includes 8 individual companies and currently sits at #46 in the Zacks Industry Rank. On average, this group has gained an average of 39.7% so far this year, meaning that DY is performing better in terms of year-to-date returns. Orion Marine Group is also part of the same industry.

Dycom Industries and Orion Marine Group could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

A month has gone by since the last earnings report for Dycom Industries (DY - Free Report) . Shares have lost about 7.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Dycom Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Dycom Q1 Earnings & Revenues Top, Raises FY2027 OutlookDycom Industries reported stellar results for the first quarter of fiscal 2027 (ended May 2, 2026). Adjusted earnings and contract revenues surpassed the Zacks Consensus Estimate and grew year over year.

Q1 Earnings & Revenue DiscussionDycom reported adjusted earnings per share (EPS) of $4.42, which topped the Zacks Consensus Estimate of $2.73 by 61.9%. In the year-ago quarter, it reported an adjusted EPS of $2.39.

Contract revenues of $1.96 billion surpassed the consensus mark of $1.67 billion by 18.0% and grew 56.1% year over year. The metric rose 24.7% on an organic basis.

Management noted that demand for fiber infrastructure deployments and data center builds remained robust during the quarter. Power Solutions also outperformed in its first full quarter as part of the Building Systems segment.

Operations & Backlog DetailsAdjusted EBITDA increased 74.6% to $262.5 million from a year ago. Adjusted EBITDA margin of 13.4% expanded 141 basis points (bps) from the year-ago level.

Dycom’s backlog as of the first fiscal quarter totaled $11.91 billion, up 46.5% year over year from $8.13 billion. Of the current backlog position, $6.40 billion is projected to be completed in the next 12 months.

Segmental DetailsBeginning in the fourth quarter of fiscal 2026, Dycom reports results through two reportable segments: Communications and Building Systems.

Communications: This segment’s contract revenues increased 24.7% year over year to $1.57 billion. Growth was driven by expansion into additional geographies and fiber-to-the-home builds that ramped ahead of expectations, supported by favorable seasonal conditions. Adjusted EBITDA increased to $192.4 million from $150.4 million a year ago. Adjusted EBITDA margin of 12.3% expanded 31 bps from the year-ago level. This segment’s total backlog grew to $10.80 billion from $8.13 billion a year ago, with a 12-month backlog of $5.38 billion.

Building Systems: The segment generated contract revenues of $395.4 million. Adjusted EBITDA was $70.0 million and adjusted EBITDA margin was 17.7%. Total backlog stood at $1.11 billion, with a 12-month backlog of $1.02 billion. The segment benefited from strong execution and demand that exceeded initial expectations.

Balance Sheet & Cash FlowAs of May 2, 2026, Dycom had cash and cash equivalents of $538.8 million compared with $709.2 million as of fiscal 2026-end. Long-term debt was $2.81 billion, relatively unchanged from $2.81 billion at fiscal 2026-end.

During the first fiscal quarter, DY repurchased 100,000 shares for $36 million.

Q2 GuidanceDycom expects contract revenues between $1.94 billion and $2.01 billion for the second quarter of fiscal 2027. Adjusted EBITDA is expected to be between $284 million and $303 million. The company anticipates adjusted EPS in the range of $4.40-$4.82.

Fiscal 2027 ViewBased on strong fiscal first-quarter results and expectations for the remainder of the year, Dycom raised its fiscal 2027 outlook. The company now expects contract revenues between $7.38 billion and $7.65 billion, up from its prior guided range of $6.85 billion to $7.15 billion. The updated outlook implies a 33.1-37.9% year-over-year rise and 12.6-15.8% organic growth.

The company continues to anticipate adjusted EBITDA margin expansion in fiscal 2027. In the Communications segment, Dycom expects modest adjusted EBITDA margin improvement as operating leverage offsets continued investment to support growth. In the Building Systems segment, the company now expects adjusted EBITDA margin in the high teens, an improvement from its earlier expectation of a mid-teen margin.

For fiscal 2027, Dycom expects Communications segment revenues between $6.03 billion and $6.20 billion, while Building Systems revenues are projected between $1.35 billion and $1.45 billion.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 16.49% due to these changes.

VGM ScoresCurrently, Dycom Industries has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dycom Industries has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Key Takeaways Rising cash flows point to stronger liquidity, debt flexibility and room to reinvest in growth.BrightSpring, Dycom, StoneX and Orion show cash flow strength, solid prices and VGM scores.Earnings estimates have risen for all four stocks, with Orion's 2026 earnings expected to grow 60%. Picking profit-making stocks for investments might be popular, but not flawless. This is because even a profit-making company can have a deficiency of cash flow and become bankrupt while meeting its obligations. However, one can effectively judge a company’s resilience by looking at its efficiency in generating cash flows.

In this regard, stocks like BrightSpring Health Services, Inc. (BTSG - Free Report) , Dycom Industries, Inc. (DY - Free Report) , StoneX Group Inc. (SNEX - Free Report) and Orion Group Holdings, Inc. (ORN - Free Report) are worth buying.

Cash, which is indeed the lifeblood of any business, gives a company the flexibility to make decisions, the means to make potential investments and the fuel to run its growth engine. Cash shields a company from market turmoil and indicates that profits are being channelized in the right direction. With uncertainties in the global economy, market disruptions and dislocations, as well as liquidity concerns, analyzing a company’s cash-generating efficiency holds more relevance in the current context.

To figure out this efficiency, one needs to consider a company’s net cash flow. While in any business, cash moves in and out, it is net cash flow that explains how much money a company is actually generating.

If a company is experiencing a positive cash flow, it denotes an increase in its liquid assets, which gives it the means to meet debt obligations, shell out for expenses, reinvest in the business, endure downturns and finally return wealth to shareholders. On the other hand, a negative cash flow indicates a decline in the company’s liquidity, which in turn lowers its flexibility to support these moves.

However, having a positive cash flow merely does not secure a company’s future growth. To ride on the growth curve, a company must have its cash flow increasing because that indicates management’s efficiency in regulating its cash movements and less dependency on outside financing for running its business.

Therefore, keep yourself abreast with the following screen to bet on stocks with rising cash flows.

Screening Parameters:To find stocks that have seen increasing cash flow over time, we ran the screen for those whose cash flow in the latest reported quarter was at least equal to or greater than the five-year average cash flow per common share. This implies a positive trend and increasing cash over a period of time.

In addition to this, we chose:

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the company’s future performance.

Current Price greater than or equal to $5: This sieves out low-priced stocks.

VGM Score of B or better: This score is also of great assistance in selecting stocks. Importantly, this scoring system helps in picking winning stocks in their industry categories.

Here are four out of the 10 stocks that qualified the screening:

BrightSpring Health Services is a national home and community-based healthcare services platform integrating pharmacy and provider care for medically complex patients across Medicare, Medicaid and commercial payors. The company focuses on seniors and specialty populations in lower-cost home and community settings.

The Zacks Consensus Estimate for BrightSpring’s 2026 earnings has been revised upward by 10.6% to $1.67 over the past 60 days. BTSG has a VGM Score of B.

Dycom Industries is a specialty contracting firm operating in the telecom industry. The company provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies.

The Zacks Consensus Estimate for fiscal 2027 earnings has improved 18.1% over the past 30 days to $16.35. DY currently has a VGM Score of B.

StoneX Group provides financial services. Through its subsidiaries, the company offers execution, post-trade settlement, clearing and custody services.

The Zacks Consensus Estimate for StoneX Group’s fiscal 2026 earnings has moved northward by 3.4% to $6.00 per share over the past 60 days. SNEX has a VGM Score of A.

Orion is a specialty construction firm serving infrastructure, industrial and building markets across North America and the Caribbean. The company's operating segment consists of the heavy civil marine construction segment and the commercial concrete segment.

The Zacks Consensus Estimate for 2026 earnings has risen to 40 cents from 37 cents per share over the past 60 days. Earnings for 2026 are expected to grow 60% from a year ago. ORN currently has a VGM Score of B.

Shares of Dycom Industries (DY - Free Report) have gained 10.2% over the past four weeks to close the last trading session at $456.65, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $631 indicates a potential upside of 38.2%.

The average comprises 10 short-term price targets ranging from a low of $610.00 to a high of $654.00, with a standard deviation of $18.41. While the lowest estimate indicates an increase of 33.6% from the current price level, the most optimistic estimate points to a 43.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for DY, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why DY Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 12.9% over the past month, as four estimates have gone higher compared to no negative revision.

Moreover, DY currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much DY could gain, the direction of price movement it implies does appear to be a good guide.

Dycom Industries (DY) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Delivers Record First Quarter Results and Exceeds High End of Fiscal Q1 2027 Outlook
Raises Full Year Fiscal 2027 Outlook
Announces Acquisition of National Technology Integrators Further Extending Capabilities in the High-Growth Data Center Industry

First Quarter Highlights
(All metrics compared to the first quarter of fiscal 2026)

Contract revenues of $1.965 billion(*) increased 56.1%, or 24.7% organicallyNet income of $91.3 million(*), or $3.00(*) per common share dilutedAdjusted Net Income of $134.3 million(*), or $4.42(*) per common share dilutedAdjusted EBITDA of $262.5 million(*), or 13.4% of contract revenuesTotal backlog of $11.906 billion(*) an increase of 46.5%Entered into a definitive agreement to acquire National Technology IntegratorsRepurchased 100,000 shares for $36.0 million (*) Amount represents quarterly record or first quarter record result

WEST PALM BEACH, Fla., May 27, 2026 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the first quarter ended May 2, 2026.

“Dycom delivered an outstanding start to the year that exceeded the high end of our expectations with strong revenue growth and margin expansion as well as record backlog,” said Dan Peyovich, Dycom’s President and Chief Executive Officer. “Demand for fiber infrastructure and data center builds is more robust today than it has ever been. We are strategically expanding our capabilities to meet this need both organically and through acquisitions. Power Solutions outperformed in its first full quarter as a part of the Building Systems segment and the acquisition of National Technology Integrators will further enhance our ability to provide comprehensive, end-to-end digital infrastructure solutions for our customers.”

“We are in an excellent position to drive continued growth and realize the opportunities we see ahead in this period of unprecedented and intensifying demand, while remaining highly disciplined in our project selection. As a result, we are raising our full year outlook. I want to thank all our teammates for their dedication to safety and execution certainty, which underpins our multi-year growth trajectory and our ability to continue delivering long-term value for our shareholders.”

First Quarter Results
Dollars in millions, except per share amounts

 Quarter Quarter    Ended Ended    May 2, 2026 April 26, 2025 % Change Contract revenues$1,964.8  $1,258.6  56.1% Organic Contract Revenues Growth %    24.7% Net income1$91.3  $61.0  49.5% Non-GAAP Adjusted Net Income2$134.3  $70.0  92.0% Diluted EPS1$3.00  $2.09  43.5% Non-GAAP Adjusted Diluted EPS2$4.42  $2.39  84.9% Non-GAAP Adjusted EBITDA$262.5  $150.4  74.6% Non-GAAP Adjusted EBITDA % of contract revenues 13.4%  11.9% 141bps Total Backlog$11,906.0  $8,127.1  46.5% 
Segment Results

In Communications, total contract revenues of $1.569 billion exceeded expectations and increased 24.7% organically compared to the prior year quarter. Growth during the period was driven by expansion into additional geographies and fiber-to-the-home builds that ramped ahead of expectations; all aided by a favorable seasonal backdrop. Non-GAAP Adjusted EBITDA margin of 12.3% increased 31 bps over the prior year quarter reflecting operating leverage and continued investment to scale the Company’s footprint and increase headcount, further strengthening Dycom’s position to execute on multi-year build programs.

In Building Systems, total contract revenues of $395.4 million and Non-GAAP Adjusted EBITDA margin of 17.7% driven by revenue growth and performance which ramped ahead of initial expectations.

Acquisition

Effective May 22, 2026, the Company entered into a definitive agreement to acquire National Technology Integrators, a tenured and fast-growing low-voltage engineering and construction firm based in Maryland, for total consideration of $275 million. The transaction is subject to customary closing and post-closing adjustments and is expected to close before the end of the second fiscal quarter.

National Technology Integrators specializes in inside-plant structured cabling, including within data centers, as well as advanced audio-visual and security systems, with operations spanning Washington D.C, Maryland, Virginia, Texas and the Midwest. At closing, the acquired business will be included in the Building Systems segment and is anticipated to have an initial annual revenue run-rate of approximately $175 million. Historically, the business achieved Adjusted EBITDA margins in the mid-to-high teens, which is expected to continue.

This acquisition enhances Dycom’s capabilities in the fast-growing digital infrastructure industry. The acquired company’s services are in high-demand and highly complementary to Dycom’s work in both segments, which will drive operational efficiencies and support greater combined project wins. The partnership also creates a significantly more complete fiber infrastructure offering, enabling Dycom to support customers from the initial connection at the server racks all the way through the networks connecting data centers, facilities, businesses and homes across America.

Outlook

The following outlook information for fiscal 2027 and the second quarter ended August 1, 2026 exclude any results from the pending acquisition of National Technology Integrators as impacts are dependent on the timing of completion.

Fiscal 2027 Annual Outlook

Based on its strong first quarter results and expectations for the remainder of the year, the Company is increasing its full year fiscal 2027 outlook and now expects the following:

 Fiscal Year Ending January 30, 2027Contract revenues$7.38 billion to $7.65 billion  Contract revenues by segment: Communications$6.03 billion to $6.20 billionBuilding Systems$1.35 billion to $1.45 billion
The Company continues to anticipate Adjusted EBITDA margin expansion for the year. In Communications, the Company continues to expect modest Adjusted EBITDA margin improvement compared to fiscal 2026 as operating leverage offsets continued investment to support growth. In Building Systems, the Company now expects Adjusted EBITDA margin in the high teens, similar to performance in the first quarter.

Second Quarter Fiscal 2027 Outlook:

For the second quarter of fiscal 2027, the Company currently expects the following:

 Quarter Ending August 1, 2026Contract revenues$1.94 billion to $2.01 billionNon-GAAP Adjusted EBITDA$284 million to $303 millionNon-GAAP Adjusted Diluted EPS (excluding amortization expense)$4.40 to $4.82
For additional information regarding the Company’s outlook, please see the “Outlook Expectations Summary” available on the Company’s Investor Center website posted in connection with the conference call discussed below.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, conference calls, webcasts, slide presentations and other materials, the Company may use or discuss non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability in making projections and/or certain information not being ascertainable; and because not all of the information and components necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.

Conference Call Information and Other Selected Data

The Company will host a conference call to discuss first quarter results on Wednesday, May 27, 2026 at 9:00 a.m. ET. Interested parties may participate in the question and answer session of the conference call by registering at https://register-conf.media-server.com/register/BIc988a8ba8b25404b95f6070d40129047. Upon registration, participants will receive a dial-in number and unique PIN to access the call. Participants are encouraged to join approximately ten minutes prior to the scheduled start time.

For all other attendees, a live listen-only audio webcast of the call, including an accompanying slide presentation, can be accessed directly at https://edge.media-server.com/mmc/p/yago4jtm  A replay of the live webcast and the related materials will be available on the Company's Investor Center website at https://ir.dycomind.com for approximately 120 days following the event.

About Dycom Industries, Inc.

Dycom is a leading 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. Additionally, Dycom 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.

Forward Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements can be identified with words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “forecast,” “target,” “outlook,” “may,” “should,” “could,” and similar expressions, as well as statements written in the future tense. These statements, as well as any other written or oral forward-looking statements we may make from time to time in other SEC filings or other public communications are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include those related to the Company’s current assumptions regarding future business and financial performance, including, but not limited to, those statements found under the “Outlook” section of this press release. These forward-looking statements also include those related to the ability of the Company to consummate the anticipated transaction to acquire National Technology Integrators on a timely basis, or at all; the ability to retain the key employees of the acquired business; unfavorable reaction to the anticipated transaction by key stakeholders, including customers and employees; the ability of the Company to identify and recognize the anticipated benefits of the proposed transaction; and the ability to successfully integrate the acquired business and related operations. Forward-looking statements are based on management’s expectations, estimates and projections, are made solely as of the date these statements are made, and are subject to both known and unknown risks and uncertainties that may cause the actual results and occurrences discussed in these forward-looking statements to differ materially from those referenced or implied in the forward-looking statements contained in this press release. The most significant of these known risks and uncertainties are described in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include: projections of revenues, income or loss, or capital expenditures; future economic conditions and trends in the industries we serve; changes in government policies and laws affecting our business, including related to funding for infrastructure projects, trade restrictions and tariff policies or changes to tax laws; our highly concentrated customer base; the competitive environment in which we operate; changes to customer capital budgets and spending priorities; our plans for future operations, growth and services, including contract backlog; our plans for future acquisitions, dispositions or financial needs; expected benefits and synergies of businesses acquired and future opportunities for the combined businesses; our significant accounts receivable and contract assets; the availability of capital; restrictions imposed by our senior notes and credit agreement; use of our cash flow to service our debt; potential liabilities or other adverse effects arising from occupational health, safety, and other regulatory matters; potential exposure to environmental liabilities; our potential exposure to litigation, indemnity claims, warranty claims, and other liabilities and disputes; whether the carrying value of the Company’s assets may be impaired; the impacts of public health emergencies; the impact of seasonality and adverse climate and weather conditions; the impact of technological change on our customers’ spending and our ability to keep pace with technological developments; our ability to attract qualified employees and subcontractors; the impact of a failure, outage or cybersecurity breach of our technology or information technology systems or those of third-party providers; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements.

For more information, contact:
Callie Tomasso, Vice President Investor Relations & Corporate Communications
Email: [email protected] 
Phone: (561) 627-7171

---Tables Follow---

DYCOM INDUSTRIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Dollars in thousands)Unaudited     May 2, 2026 January 31, 2026ASSETS   Current assets:   Cash and equivalents$538,826 $709,165Accounts receivable, net 1,980,558  1,696,973Contract assets 240,133  162,327Inventories 143,290  128,349Income tax receivable 16,897  19,869Other current assets 50,653  40,212Total current assets 2,970,357  2,756,895    Property and equipment, net 591,570  575,376Operating lease right-of-use assets 176,255  169,648Goodwill and other intangible assets, net 2,324,731  2,369,383Other assets 117,487  107,880Total assets$6,180,400 $5,979,182    LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities:   Accounts payable$666,643 $497,263Current portion of debt 6,000  4,000Contract liabilities 155,812  158,503Accrued insurance claims 50,406  47,594Operating lease liabilities 44,773  42,288Income taxes payable —  771Other accrued liabilities 225,726  256,481Total current liabilities 1,149,360  1,006,900    Long-term debt 2,809,714  2,810,497Accrued insurance claims - non-current 66,024  57,977Operating lease liabilities - non-current 138,448  135,221Deferred tax liabilities, net - non-current 96,489  85,159Other liabilities 24,661  24,292Total liabilities 4,284,696  4,120,046    Total stockholders’ equity 1,895,704  1,859,136Total liabilities and stockholders’ equity$6,180,400 $5,979,182     DYCOM INDUSTRIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except share amounts)Unaudited     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Contract revenues$1,964,782  $1,258,608     Costs of earned revenues, excluding depreciation and amortization 1,578,055   1,011,112 General and administrative3 131,329   103,726 Depreciation and amortization 111,644   58,389 Total 1,821,028   1,173,227     Interest expense, net (35,535)  (14,045)Other income, net (1,510)  7,264 Income before income taxes 106,709   78,600     Provision for income taxes 15,420   17,552     Net income$91,289  $61,048     Earnings per common share:       Basic earnings per common share$3.05  $2.11     Diluted earnings per common share$3.00  $2.09     Shares used in computing earnings per common share:    Basic 29,972,366   28,930,399     Diluted 30,382,270   29,263,624      DYCOM INDUSTRIES, INC. AND SUBSIDIARIESSUPPLEMENTAL SEGMENT DATAUnaudited     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025 (Dollars in thousands)Contract revenues   Communications$1,569,407  $1,258,608 Building Systems 395,375   — Total$1,964,782  $1,258,608     Non-GAAP Adjusted EBITDA  Communications$192,422  $150,360 Building Systems 70,044   — Total$262,466  $150,360     Non-GAAP Adjusted EBITDA % of Contract Revenues  Communications 12.3%  11.9%Building Systems 17.7%  —%Total 13.4%  11.9%                  May 2, 2026 January 31, 2026 April 26, 2025 Total Backlog Next 12 Months (included in Total Backlog) Total Backlog Next 12 Months (included in Total Backlog) Total Backlog Next 12 Months (included in Total Backlog) (Dollars in millions)Backlog4           Communications$10,800 $5,376 $8,333 $5,250 $8,127 $4,685Building Systems 1,106  1,021  1,209  1,108  —  —Total$11,906 $6,397 $9,542 $6,358 $8,127 $4,685                   DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, slide presentations, conference calls, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company’s performance for the period reported with the Company’s performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Management defines the Non-GAAP financial measures used as follows:

Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entirety of both the current and prior year periods. Non-GAAP Organic Contract Revenue change percentage is calculated as the change in Non-GAAP Organic Contract Revenues from the comparable prior year period divided by the comparable prior year period Non-GAAP Organic Contract Revenues. Management believes Non-GAAP Organic Contract Revenues is a helpful measure for comparing the Company’s revenue performance with prior periods. Non-GAAP Adjusted EBITDA - EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates. Non-GAAP Adjusted Net Income - GAAP net income before amortization of intangible assets as well as certain non-recurring items and the related tax impacts. The tax impact of pre-tax adjustments reflects the Company’s estimated tax impact of specific adjustments and the effective tax rate used for financial planning for the applicable period. Management believes Non-GAAP Adjusted Net Income is a helpful measure for comparing the Company’s operating performance with prior periods. Beginning in the fiscal fourth quarter ending January 31, 2026, the Company excludes the impact of intangible amortization expense in its calculation of Non-GAAP Adjusted Net Income. Non-GAAP Adjusted Diluted Earnings per Common Share - Non-GAAP Adjusted Net Income divided by weighted average diluted shares outstanding. DYCOM INDUSTRIES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Dollars in thousands, except share amounts)Unaudited    NON-GAAP ORGANIC CONTRACT REVENUES AND GROWTH %     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Contract Revenues - GAAP$1,964,782  $1,258,608Contract Revenues - GAAP Growth % 56.1%      Contract Revenues - GAAP$1,964,782  $1,258,608Revenues from acquired businesses5 (395,375)  —Non-GAAP Organic Contract Revenues$1,569,407  $1,258,608Non-GAAP Organic Contract Revenues Growth % 24.7%       NON-GAAP ADJUSTED NET INCOME AND NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Reconciliation of net income to Non-GAAP Adjusted Net Income:   Net income$91,289  $61,048     Pre-Tax Adjustments:   Amortization expense2 58,294   11,978     Tax Adjustments:   Tax impact of pre-tax adjustments (15,261)  (3,066)Total adjustments, net of tax 43,033   8,912     Non-GAAP Adjusted Net Income$134,322  $69,960     Reconciliation of diluted earnings per common share to Non-GAAP Adjusted Diluted Earnings per Common Share:   GAAP diluted earnings per common share$3.00  $2.09 Total adjustments, net of tax 1.42   0.30 Non-GAAP Adjusted Diluted Earnings per Common Share$4.42  $2.39     Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share 30,382,270   29,263,624     Amounts in tables above may not add due to rounding. DYCOM INDUSTRIES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Dollars in thousands)Unaudited    NON-GAAP ADJUSTED EBITDA     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Reconciliation of net income to Non-GAAP Adjusted EBITDA:   Net income$91,289  $61,048 Interest expense, net 35,535   14,045 Provision for income taxes 15,420   17,552 Depreciation and amortization 111,644   58,389 Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 253,888   151,034 Gain on sale of fixed assets (1,995)  (9,773)Stock-based compensation expense 10,573   9,099 Non-GAAP Adjusted EBITDA$262,466  $150,360 Non-GAAP Adjusted EBITDA % of contract revenues 13.4%  11.9% DYCOM INDUSTRIES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Dollars in thousands)Unaudited    COMMUNICATIONS SEGMENT - NON-GAAP ADJUSTED EBITDA     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Reconciliation of Income before income taxes to Non-GAAP Adjusted EBITDA:   Income before income taxes$118,847  $92,645 Interest (income) expense, net —   — Depreciation and amortization 65,211   58,389 EBITDA 184,058   151,034 Gain on sale of fixed assets (1,984)  (9,773)Stock-based compensation expense 10,348   9,099 Non-GAAP Adjusted EBITDA$192,422  $150,360 Non-GAAP Adjusted EBITDA % of contract revenues 12.3%  11.9%     BUILDING SYSTEMS SEGMENT - NON-GAAP ADJUSTED EBITDA     Quarter Quarter Ended Ended May 2, 2026 April 26, 2025Reconciliation of Income before income taxes to Non-GAAP Adjusted EBITDA:   Income before income taxes$23,801  $— Interest (income) expense, net (404)  — Depreciation and amortization 46,433   — EBITDA 69,830   — Gain on sale of fixed assets (11)  Stock-based compensation expense 226   — Non-GAAP Adjusted EBITDA$70,044  $— Non-GAAP Adjusted EBITDA % of contract revenues 17.7%  —%
Notes

1 Results for the quarter ended May 2, 2026 include income tax benefits resulting from the vesting and exercise of share-based awards of $12.5 million, or $0.41 per share, compared to $2.2 million, or $0.08 per share, for the quarter ended April 26, 2025.

2 The Company excludes amortization of intangible assets from its Non-GAAP Adjusted Net Income beginning with the results reported for the fourth quarter and fiscal year ended January 31, 2026. Amortization of intangible assets are impacted by the Company’s acquisition activities and therefore can vary from period to period. The exclusion of the amortization expense from the Company’s non-GAAP financial measures provides management with a consistent measure for assessing financial results. Prior periods have been adjusted for comparability with the current presentation as follows: Amortization expense of $12.0 million and the related tax impact has been excluded from the original reported Non-GAAP Adjusted Net Income for the quarter ended April 26, 2025.

3 Includes stock-based compensation expense of $10.6 million and $9.1 million for the quarters ended May 2, 2026 and April 26, 2025, respectively

4 The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provided. In the case of master service agreements, backlog is estimated based on the work performed in the preceding 12-month period, when available. When estimating backlog for newly initiated master service agreements and other long and short-term contracts, the Company also considers the anticipated scope of the contract and information received from the customer during the procurement process. A significant majority of the Company’s backlog comprises services under master service agreements and other long-term contracts. Backlog is not a measure defined by United States GAAP and should be considered in addition to, but not as a substitute for, information provided in accordance with GAAP. Participants in the Company’s industry also disclose a calculation of their backlog; however, the Company’s methodology for determining backlog may not be comparable to the methodologies used by others. Dycom utilizes the calculation of backlog to assist in measuring aggregate awards under existing contractual relationships with its customers. The Company believes its backlog disclosures will assist investors in better understanding this estimate of the services to be performed pursuant to awards by its customers under existing contractual relationships.

5 Amounts represent contract revenues from acquired businesses that were not owned for the entirety of both the current and prior year periods.

Dycom Industries (DY - Free Report) reported $1.96 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 56.1%. EPS of $4.42 for the same period compares to $2.09 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.66 billion, representing a surprise of +18.02%. The company delivered an EPS surprise of +62.2%, with the consensus EPS estimate being $2.73.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Dycom Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Backlog: $11.91 billion versus $9.68 billion estimated by three analysts on average.Revenues- Building Systems: $395.38 million versus $293.78 million estimated by three analysts on average.Revenues- Communications: $1.57 billion compared to the $1.36 billion average estimate based on three analysts.Adjusted EBITDA- Building Systems: $70.04 million compared to the $43.84 million average estimate based on three analysts.Adjusted EBITDA- Communications: $192.42 million versus the three-analyst average estimate of $163.61 million.View all Key Company Metrics for Dycom Industries here>>>

Shares of Dycom Industries have returned +4.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Dycom beat earnings with a stick -- then raised guidance.

Dycom (NYSE: DY) stock hits a 52-week high as Q1 earnings beat estimates. Revenue jumps 56% to $1.97B on strong fiber and data center demand.

May 27, 2026 16:01 ET  | Source: Dycom Industries Inc

WEST PALM BEACH, Fla., May 27, 2026 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today that the Company will participate in the following upcoming institutional investor events:

Wednesday, June 3, 2026 – Stifel 2026 Cross Sector 1x1 Conference, Boston, MA
Senior management will participate in one-on-one and group meetings with investors. Wednesday, July 8, 2026 – Guggenheim Securities Fireside Chat, Virtual 
Senior management will present in a fireside chat format at 11:00 a.m. ET. The fireside chat presentation referenced above will be live audio webcasted and accessible from the Events and Presentations section of Dycom’s Investor Relations website at https://ir.dycomind.com. A replay of each webcast will be available for approximately 90 days following the live event.

About Dycom Industries, Inc.

Dycom is a leading 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. Additionally, Dycom 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.

For more information, contact:

Callie Tomasso, Vice President Investor Relations & Corporate Communications
Email: [email protected]
Phone: (561) 627-7171

Dycom Industries, Inc. delivered a blowout Q1, with revenues up 55.6% to $1.96B and a 26% share price surge. DY's growth was driven by both organic expansion (24.7%) and the Power Solutions acquisition, boosting data center infrastructure exposure. Backlog soared 46.5% to $11.9B, with a 2.2x book-to-bill ratio, and management raised full-year revenue guidance by 7%.

Dycom Industries (DY - Free Report) closed the last trading session at $485.97, gaining 6.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $631 indicates a 29.8% upside potential.

The mean estimate comprises 10 short-term price targets with a standard deviation of $18.41. While the lowest estimate of $610.00 indicates a 25.5% increase from the current price level, the most optimistic analyst expects the stock to surge 34.6% to reach $654.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in DY. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in DYThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 0% over the past month, as two estimates have gone higher compared to no negative revision.

Moreover, DY currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much DY could gain, the direction of price movement it implies does appear to be a good guide.

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dycom Industries (DY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Dycom Industries is one of 88 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DY's full-year earnings has moved 12.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, DY has moved about 32% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 8.6% on a year-to-date basis. As we can see, Dycom Industries is performing better than its sector in the calendar year.

Another stock in the Construction sector, Orion Marine Group (ORN - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 34%.

For Orion Marine Group, the consensus EPS estimate for the current year has increased 12.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 8 individual companies and currently sits at #43 in the Zacks Industry Rank. This group has gained an average of 27.3% so far this year, so DY is performing better in this area. Orion Marine Group is also part of the same industry.

Investors with an interest in Construction stocks should continue to track Dycom Industries and Orion Marine Group. These stocks will be looking to continue their solid performance.