Shares of Dycom Industries (DY) plummeted 11.53% in Wednesday's pre-market trading session following the release of its fiscal 2026 second-quarter earnings report. The telecommunications infrastructure company's stock decline was primarily driven by a revenue miss and weaker-than-expected guidance for the upcoming quarter.

Dycom reported quarterly revenue of $1.38 billion, representing a 14.5% year-over-year increase. However, this figure fell short of analysts' expectations of $1.41 billion. Despite the revenue miss, the company posted a record GAAP diluted earnings per share of $3.33, surpassing the consensus forecast of $2.92. Dycom's net income rose 42.5% to $97.5 million, attributed to improved operational efficiency and operating leverage.

The stock's sharp decline was further exacerbated by disappointing third-quarter guidance. Dycom expects Q3 revenue between $1.38 billion and $1.43 billion, falling short of the $1.46 billion analysts were anticipating. This weaker-than-expected outlook, combined with the Q2 revenue miss, has sparked concerns among investors about the company's near-term growth prospects. Despite these challenges, Dycom maintained its full-year 2026 revenue outlook of $5.290 billion to $5.425 billion, in line with the consensus estimate of $5.38 billion.