By Al Root

Telecom and data center infrastructure builder Dycom Industries smashed earnings expectations amid "unprecedented" demand. Its stock is soaring.

Wednesday morning, Dycom reported adjusted earnings per share of $4.42 from sales of $2 billion. Wall Street was looking for earnings per share of $2.72 from sales of $1.7 billion.

Sales rose 56% year over year. Earnings per share grew 85%. Backlog ended the quarter at $11.9 billion, up 46.5% year over year.

Looking ahead, Dycom expects fiscal second-quarter earnings per share of $4.40 to $4.82 from sales of about $2 billion. Wall Street currently projects $4.06 and $1.8 billion, respectively.

For the full year, Dycom expects sales of $7.4 billion to $7.7 billion, up from prior guidance of $6.9 billion to $7.2 billion. Wall Street projects $7.1 billion. Faster growth in the company's communication infrastructure and building systems is responsible for the guidance bump.

It's a strong quarter. Shares were up 21% in premarket trading at $510, while S&P 500 and Dow Jones Industrial Average futures were up about 0.4%.

"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, " said CEO Dan Peyovich in a news release.

In May, Dycom bought National Technology Integrators, a low-voltage engineering and construction firm that adds to the company's ability to build digital infrastructure. In December, Dycom completed its acquisition of Power Solutions, a contractor serving AI data centers.

"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," added Peyovich.

Things are good for builders of communications and AI infrastructure, as Dycom's blowout first-quarter results show.

Write to Al Root at allen.root@dowjones.com

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May 27, 2026 07:28 ET (11:28 GMT)

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