Shares of Dycom Industries (DY) tumbled 10.60% in pre-market trading on Wednesday after the telecommunications infrastructure company reported disappointing second-quarter results and provided weaker-than-expected guidance. The sharp decline came despite Dycom beating earnings estimates for the quarter.

For the fiscal second quarter, Dycom reported revenue of $1.38 billion, up 14.5% year-over-year but falling short of analysts' expectations of $1.41 billion. The company's earnings per share of $3.33 surpassed Wall Street estimates of $2.92. However, investors seemed more focused on Dycom's forward guidance, which came in below expectations. The company forecast third-quarter revenue between $1.38 billion and $1.43 billion, below the consensus estimate of $1.46 billion.

While Dycom's CEO Dan Peyovich highlighted the company's "record revenue" and improved margins through operational efficiency, the market reaction suggests investors are concerned about slowing growth. The company maintained its full-year 2026 revenue outlook of $5.290 billion to $5.425 billion, but the weaker-than-expected near-term guidance appears to have overshadowed the positive aspects of the earnings report, leading to the significant pre-market selloff.