Shares of Dycom Industries (NYSE: DY) surged 14.97% 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.

For the quarter ended April 26, 2025, Dycom reported earnings per share (EPS) of $2.09, handily beating the analyst consensus estimate of $1.69 by 23.67%. 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. Additionally, Dycom reported a record backlog of $8.127 billion, underscoring the strong demand for its services.

Adding to the positive sentiment, Dycom provided an optimistic outlook for its fiscal Q2 and raised its full-year guidance. The company now expects fiscal 2026 contract revenue to grow by 12.5% to 15.4%, up from its previous projection of 10% to 13%. For the second quarter, Dycom projects contract revenue in the range of $1.38 billion to $1.43 billion, above the FactSet estimate of $1.36 billion. This combination of strong current performance and positive future outlook appears to be driving investor enthusiasm, as reflected in the significant pre-market stock surge.