Dycom Industries: Robust FTTH Outlook Despite Competitive Fears; Metro Area and Long Haul Fiber Deals Positive Medium Driver; Robust Growth for Building Systems

Research evidence excerpt

Dycom Industries: Robust FTTH Outlook Despite Competitive Fears; Metro Area and Long Haul Fiber Deals Positive Medium Driver; Robust Growth for Building Systems

J P M O R G A N North America Equity Research

29 July 2026

Dycom Industries

Robust FTTH Outlook Despite Competitive Fears; Overweight

Metro Area and Long Haul Fiber Deals Positive Medium DY, DY US

Driver; Robust Growth for Building Systems Price (28 Jul 26):$401.87

Price Target (Dec-26):$650.00

Dycom is well positioned to benefit from FTTH builds as carriers pursue a Communications Infrastructure

ACconverged-bundle strategy, prioritizing fiber as a superior broadband technology Richard Choe

vs. FWA or satellite. Additionally, the carriers are further incentivized to deploy (1-212) 622-6708

fiber as they decommission legacy copper networks. Last week, both AT&T and richard.choe@jpmorgan.com

Verizon reiterated fiber builds for the year. AT&T plans to have its largest year ever Braden Nguyen AC

for fiber expansion with 8m new locations being built. Verizon is on track to end (1-212) 622-1861

this year with over 32m fiber passings and is positive on the results so far from fiber braden.nguyen@jpmorgan.com

J.P. Morgan Securities LLC

expansion in its acquired Frontier markets. We look for ongoing fiber builds by

legacy telco providers to be a key long-term driver for Dycom. A secondary driver

for the Communications segment is metro-area and long-haul fiber network builds, Quarterly Forecasts (FYE Jan)

which are starting to see more deal announcements. Verizon announced a $1b deal Adj. EPS ($)

with Google and, earlier in the year, Meta announced a multi-year agreement with 2026A 2027E 2028E

Corning of up to $6b, which does not include the deployment of the fiber for a Q1 2.09 4.42A 3.64

Q2 3.33 4.62 5.48

carrier.