Dycom Industries, Inc. (DY) Stock Price & How to Invest

Dycom Industries, based in Palm Beach Gardens, Florida, is one of the largest specialty contractors serving US communications networks. Its crews engineer, build and maintain fiber-to-the-home networks, long-haul and middle-mile fiber routes, wireless sites and cable systems for carriers such as AT&T, Lumen, Comcast, Verizon and Charter, plus a growing set of hyperscale technology companies laying fiber between AI data centers. In December 2025 it closed the roughly $2.0 billion acquisition of Power Solutions, a Mid-Atlantic data center electrical contractor, which created a new Building Systems segment, and in fiscal Q2 2027 it added National Technology Integrators, a data center structured-cabling firm. Its fiscal year ends in late January.

The operating numbers are the strongest in the company's history. Fiscal 2026 revenue was ~$5.55 billion, up ~18%, with adjusted EBITDA of ~$738 million and free cash flow of ~$435 million. Fiscal Q1 2027 revenue jumped ~56% to ~$1.96 billion, and Q2 (reported August 26, 2026) rose ~46% to a record ~$2.01 billion, ~17% organically, with adjusted EPS of ~$5.29 against roughly $4.70 expected and backlog of ~$12.2 billion, about $6.5 billion of it due within 12 months. Management lifted full-year revenue guidance to ~$7.48 to $7.66 billion. The catch: Communications segment EBITDA margin fell ~134 basis points to ~13.6%, ~$150 million of wireless work slipped into fiscal 2028, and Q3 earnings guidance landed slightly below consensus.

The market punished that mix hard. Shares, which peaked near $566 over the summer, dropped about 25% in the week after the Q2 report and kept sliding to new 52-week lows near $240 by October 21, leaving a market cap of ~$7.2 billion. That puts the stock at ~22x trailing GAAP earnings and ~15x trailing adjusted earnings, well below where it traded in mid-2026, while analysts still hold a Moderate Buy consensus with average targets near $500 after a round of cuts. The investment picture now hinges on whether margin pressure is a short-term workforce and timing issue, or a sign the fiber and data center build cycle has peaked.

Customer concentration is the structural risk: a handful of telecom carriers have historically supplied the majority of Dycom's revenue, so a capex cut, merger pause or vendor shift at one of them can move results quickly, as happened in 2018 and 2019. Margins are the near-term risk, and Q2 showed how sensitive they are to labor investment, fuel and project timing; the market's reaction suggests little tolerance for further slippage. The balance sheet carries more debt after Power Solutions, funded with cash, a $1.0 billion term loan and a bridge facility, leaving debt-to-equity near 1.35. Building Systems is concentrated in one regional data center market that depends on hyperscaler spending, which could cool if AI returns disappoint. BEAD timing and policy remain uncertain. The stock has a beta near 1.5 and fell about 57% from its high in roughly three months, so volatility is substantial. Integration of two acquisitions in under a year adds execution risk. Fiscal Q3 results, expected around late November 2026, are the next test.

11 analysts publish price targets on DY, averaging $513.18 against a $225.16 price as of October 2026, or +127.9%. The published targets run from $375.00 to $625.00, a moderate spread, and the ratings split 11 buy, 0 hold, 0 sell. Over the last six months there have been 3 raises and 5 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full DY forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Dycom Industries, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Fiber-to-the-home and rural broadband buildouts. Communications is still Dycom's core, at ~$1.6 billion of Q2 revenue (roughly 80% of the total). The most optimistic published target, $625.00, assumes this works close to its best case.

The case against. Customer concentration is the structural risk: a handful of telecom carriers have historically supplied the majority of Dycom's revenue, so a capex cut, merger pause or vendor shift at one of them can move results quickly, as happened in 2018 and 2019. The most pessimistic target, $375.00, is roughly what DY is worth if this bites instead.

Read the full bull and bear case on DY, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Dycom Industries, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$6.9 billion (fiscal Q2 2027 ~$2.01 billion, up ~46% year over year)
• Adjusted EPS (TTM): ~$16 (fiscal Q2 2027 ~$5.29 vs ~$4.70 consensus)
• P/E (trailing GAAP / adjusted): ~22x / ~15x
• Market cap: ~$6.8 billion (stock ~$225 in late October 2026, near its 52-week low)
• Backlog: ~$12.2 billion (~$6.5 billion due in the next 12 months)
• Fiscal 2027 revenue guidance: ~$7.48 to $7.66 billion (raised in August 2026)

Dycom's valuation compressed sharply in 2026. In April the shares traded near 42x trailing GAAP earnings; by late October they were around 22x GAAP and ~15x adjusted, with the stock below both its 50-day (~$306) and 200-day (~$387) averages. Adjusted figures exclude acquisition amortization and deal costs, which became larger after Power Solutions, so the gap between GAAP and adjusted earnings is wider than before. Analysts' average target sits near $500 (Moderate Buy, 10 buys and 2 holds), though several firms cut targets after Q2. These figures are approximate and change daily.

Other names that sit close to DY: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get DY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so DY sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where DY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Dycom is a record-backlog fiber and data center contractor whose shares fell more than half from their high on margin worries. At ~15x adjusted earnings, the question is whether the slip is temporary.

Whether DY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is DY a buy or a sell?, and where the stock could go from here in the DY stock forecast.

For income investors, whether DY pays a dividend and how the payout looks is covered in does DY pay a dividend? And to weigh DY against a peer, read the full side-by-side comparisons: DY vs MTZ and DY vs PWR.