Fed’s Powell opens door to potential rate cuts at Jackson Hole
On Thursday, JPMorgan analysts increased the price target for Dycom Industries (NYSE:DY) shares to $250 from the previous $200, while keeping an Overweight rating on the stock. The company’s stock, currently trading at $221.17, has shown remarkable momentum with a 16.67% gain in the past week. According to InvestingPro data, Dycom is trading near its 52-week high of $228.66, with a market capitalization of $6.37 billion. The revision follows Dycom’s announcement of robust first-quarter fiscal year 2026 results, which exceeded expectations due to the swift integration and performance of its recently acquired Black & Veatch wireless business, along with a solid contribution from service and maintenance revenue.
Dycom has now updated its fiscal 2026 total contract revenue forecast to a range of $5.29 billion to $5.425 billion. This adjustment indicates a growth range of 12.5% to 15.4%, an increase from the prior forecast of 10.0% to 13.0%. The company’s performance has been bolstered by the wireless sector, as well as ongoing service and maintenance operations, and the expansion of fiber-to-the-home projects. Building on its strong track record of 12.61% revenue growth in the last twelve months, the company trades at a P/E ratio of 27.57x. For deeper insights into Dycom’s valuation and growth metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
For the second quarter of fiscal year 2026, Dycom provided guidance that includes contract revenue estimated between $1.38 billion and $1.43 billion. This represents a year-over-year growth of 16.8% and a quarter-over-quarter increase of 11.6% at the midpoint. Additionally, the company expects adjusted EBITDA to be in the range of $185 million to $200 million, up 21.6% year-over-year and 28.0% quarter-over-quarter at the midpoint, with margins anticipated to be between 13.4% and 14.0%.
Earnings per share (EPS) for the same quarter are projected to be between $2.74 and $3.05, reflecting the continuous advantages derived from the company’s diverse operations. This guidance underscores Dycom’s confidence in its growth trajectory and the underlying strength of its business segments. The company’s focus on wireless infrastructure, coupled with its service and maintenance offerings and fiber buildouts, appears to be driving this positive outlook.
In other recent news, Dycom Industries reported impressive financial results for Q1 2026, with earnings per share (EPS) of $2.90, significantly exceeding the forecasted $1.65. The company’s revenue also surpassed expectations, reaching $1.259 billion compared to the projected $1.19 billion. This strong performance led Dycom to raise its full-year revenue guidance to between $5.29 billion and $5.425 billion. UBS analyst Steven Fisher subsequently increased the price target for Dycom’s shares to $258 from $234, maintaining a Buy rating. This decision was influenced by Dycom’s robust earnings and a positive outlook for fiscal year 2026. The company has been awarded additional projects, including a longhaul/backbone award and a contract from a hyperscaler for work inside-the-fence, which are yet to be added to its backlog. These developments highlight Dycom’s growing momentum in fiber-related constructions and telecommunications infrastructure projects. The company anticipates continued organic growth and potential opportunities from the Broadband Equity, Access, and Deployment (BEAD) program in fiscal 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.