Dycom Industries, Inc. DY is entering the second half of fiscal 2027 with record backlog that provides strong visibility into future revenues. Total backlog reached $12.2 billion at the end of the second quarter of fiscal 2027, including $10.98 billion in Communications and $1.26 billion in Building Systems. Of this, $6.47 billion is expected to be completed over the next 12 months, providing a substantial base of committed work.
Fiber infrastructure remains the key growth driver. Dycom has secured more than $1 billion of contracted backlog across long-haul, middle-mile and inside-the-fence fiber projects. Management sees these projects as part of an approximately $20 billion addressable opportunity fueled by cloud migration, AI workloads and expanding data center connectivity. Industry activity is expected to accelerate in 2027, while customers continue to support multi-year fiber-to-the-home programs. The Broadband Equity, Access, and Deployment (BEAD)-related construction could provide an additional catalyst as activity ramps next year.
Building Systems adds further support, with strong demand for electrical and structured cabling solutions across data centers and critical infrastructure. Power Solutions continues to scale, while National Technology Integrators expands Dycom’s capabilities and cross-selling potential. Management expects Building Systems revenues of $1.58-$1.65 billion in fiscal 2027, up sharply from $95.8 million reported in fiscal 2026, although the prior-year figure reflects only a partial-year contribution from Power Solutions. Margins are expected to remain in the high-teens to low-20s range for the remainder of fiscal 2027.
These trends prompted Dycom to raise its fiscal 2027 revenue outlook to $7.48-$7.66 billion, with organic revenue growth expected between 10.3% and 12.3%. Although workforce investments and the shift of roughly $150 million of wireless revenues into fiscal 2028 could pressure near-term margins, the record backlog and expanding fiber pipeline provide a solid foundation for sustained growth through fiscal 2027 and beyond.
How Dycom’s Growth Pipeline Compares With Infrastructure Rivals
Sterling Infrastructure, Inc. STRL is a relevant rival to Dycom through its exposure to data centers, semiconductor campuses and other mission-critical infrastructure. In the second quarter of 2026, Sterling’s E-Infrastructure revenues increased 192%, while mission-critical work represented more than 92% of the segment’s signed backlog. E-Infrastructure signed backlog, unsigned electrical awards and future-phase opportunities exceeded $6 billion, giving Sterling significant visibility into continued data center and critical-infrastructure activity.
MasTec, Inc. MTZ also competes with Dycom across communications, power delivery and mission-critical infrastructure. MasTec ended the second quarter with a record backlog of $21.4 billion, supported by strong demand tied to AI, data centers, grid expansion and digital infrastructure. Within Communications, the company continues to view fiber expansion and hyperscaler connectivity as major long-term opportunities, with billions of dollars of related pursuits underway. MasTec also expects much of its recent backlog growth to benefit 2027, strengthening its medium-term growth visibility.
DY Stock’s Price Performance & Valuation Trend
Shares of this specialty contracting firm have declined 23.8% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.
Dycom Price Performance (Past Six Months)
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DY stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 16.18, as shown in the chart below.
Dycom Valuation (P/E F12M)
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors Dycom
Dycom’s earnings estimates have shown a mixed trend over the past 30 days. The fiscal 2027 estimate has moved higher to $17.19 per share, while the fiscal 2028 estimate has declined to $20.01. The estimated figures for fiscal 2027 and fiscal 2028 imply year-over-year growth of 43.6% and 16.4%, respectively.
Image Source: Zacks Investment Research
Dycom stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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