Dycom Industries (Dycom (DY)) had a Wednesday to remember. The stock shot up nearly 28% after the company reported first-quarter results that blew past Wall Street's expectations and raised its outlook for the year. The culprit? A seemingly insatiable appetite for fiber internet and data centers.

Contract revenue hit $1.97 billion, up 56% from a year ago and well above the $1.67 billion analysts were looking for. Even stripping out acquisitions, organic revenue grew nearly 25%. Adjusted earnings per share came in at $4.42, an 85% jump from last year. The company also ended the quarter with a backlog of $11.9 billion and $538.8 million in cash.

CEO Dan Peyovich summed it up simply: "Demand for fiber infrastructure and data center builds is more robust today than it has ever been." He added that the company is "strategically expanding our capabilities to meet this need both organically and through acquisitions."

Segment Strength Across the Board

Dycom's Communications segment, which handles fiber deployments and related work, brought in $1.57 billion in revenue, with organic growth of 24.7%. The company credited expansion into new markets, faster-than-expected fiber-to-the-home rollouts, and favorable weather. Adjusted EBITDA margin in the segment ticked up to 12.3%, showing that even as Dycom invests in hiring and training for long-term projects, it's still squeezing out more profit.

The Building Systems segment, which includes data center construction and other specialized work, contributed $395.4 million in revenue. Its adjusted EBITDA margin was a healthy 17.7%, helped by strong project execution and a faster-than-expected revenue ramp. Peyovich noted that Power Solutions, which joined Building Systems in its first full quarter, "outperformed."

A Rosy Outlook

For the current quarter, Dycom expects adjusted earnings of $4.40 to $4.82 per share, above the $4.10 analysts were forecasting. Revenue is projected between $1.94 billion and $2.01 billion, also ahead of the $1.77 billion consensus.

For the full fiscal year 2027, the company raised its revenue guidance to a range of $7.38 billion to $7.65 billion, up from its prior forecast of $6.85 billion to $7.15 billion. Analysts had been expecting $7.05 billion. Dycom said it expects continued momentum from fiber deployments, accelerating data center construction, and potential opportunities from the federal Broadband Equity, Access and Deployment program.

Buying Growth: National Technology Integrators

Dycom also announced it has agreed to acquire National Technology Integrators for $275 million. The deal is expected to add about $175 million in annualized revenue and expand Dycom's capabilities in low-voltage engineering and data center infrastructure. The company said the acquisition will be immediately accretive and strengthen its exposure to high-growth areas like data centers, structured cabling, and security systems.

Peyovich said the acquisition "will further enhance our ability to provide comprehensive, end-to-end digital infrastructure solutions for our customers."

Stock Price Action

Shares of Dycom were up 27.95% at $538.00 at the time of publication, hitting a new 52-week high. The market clearly liked what it saw: a company riding a wave of demand for the pipes and buildings that power the digital world, with a clear strategy to keep growing.