Shares of Dycom Industries (DY) plummeted 11.53% in pre-market trading on Wednesday following the release of its fiscal 2026 second-quarter earnings report. The telecommunications infrastructure company reported mixed results, with earnings beating expectations but revenue falling short of analyst estimates.

Dycom posted quarterly revenue of $1.38 billion, up 14.5% year-over-year but missing the consensus forecast of $1.41 billion. Despite the revenue miss, the company reported a record GAAP diluted earnings per share of $3.33, surpassing analysts' expectations of $2.92. Dycom's net income rose 42.5% to $97.5 million, driven by improved operational efficiency and operating leverage.

The significant stock decline can be attributed to 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. While Dycom maintained its full-year 2026 revenue outlook of $5.290 billion to $5.425 billion, the market reaction suggests investors are more focused on the immediate challenges facing the company.