Dycom Industries (NYSE: DY) saw its stock surge 5.88% in pre-market trading on Wednesday following the release of its fiscal 2026 first-quarter results that significantly exceeded analyst expectations. The specialty contracting services company not only reported better-than-anticipated earnings and revenue but also raised its full-year outlook, signaling strong confidence in its future performance.

Dycom reported Q1 earnings per share (EPS) of $2.09, handily beating the analyst consensus estimate of $1.69 by 23.67%. While this represents a slight 1.42% decrease from the $2.12 per share reported in the same period last year, it still impressed investors. The company's quarterly revenue came in at $1.26 billion, surpassing the analyst estimate of $1.19 billion by 5.40% and marking a robust 10.21% increase from the $1.14 billion reported in the prior year's quarter.

Adding to the positive sentiment, Dycom provided an optimistic outlook for its fiscal Q2, projecting contract revenue in the range of $1.38 billion to $1.43 billion, above the FactSet estimate of $1.36 billion. The company also increased its full-year fiscal 2026 contract revenue outlook to between $5.290 billion and $5.425 billion. Furthermore, Dycom reported a record backlog of $8.127 billion as of April 26, 2025, underscoring the strong demand for its services and setting the stage for continued growth. This combination of strong current performance and positive future outlook appears to be driving investor enthusiasm, as reflected in the pre-market stock surge.