Daktronics Inc (NASDAQ:DAKT) Beats Q2 Estimates with Strong Revenue and Profit Growth

Daktronics Posts Strong Q2, Beating Estimates on Top and Bottom Lines

Daktronics Inc (NASDAQ:DAKT) reported financial results for its fiscal second quarter of 2026, delivering performance that exceeded analyst expectations. The manufacturer of electronic scoreboards and video displays saw both revenue and earnings per share come in ahead of forecasts, contributing to a positive pre-market reaction for the stock.

Earnings and Revenue Versus Estimates

The company’s results for the quarter ended November 1, 2025, demonstrated solid growth and operational execution.

• Revenue: Daktronics reported net sales of $229.3 million. This represents a 10% increase year-over-year and surpassed the analyst consensus estimate of approximately $218.4 million.
• Earnings Per Share (EPS): The company reported diluted earnings per share of $0.35. This figure comfortably exceeded the analyst estimate of $0.27 per share.

The double-digit beat on the bottom line highlights not only revenue strength but also improved profitability. The company's operating margin expanded to 9.4%, up from 7.6% in the prior-year quarter, driven by higher sales, operational efficiencies, and value-based pricing.

Market Reaction and Price Action

Following the earnings release, Daktronics shares saw a significant uptick in pre-market trading, rising approximately 10.1%. This immediate positive reaction reflects investor approval of the earnings beat and the company's raised profitability metrics.

This pre-market gain stands in contrast to the stock's recent performance, which had seen modest declines over the past month. The earnings report appears to have served as a catalyst, reversing near-term negative sentiment and refocusing attention on the company's fundamental progress.

Key Highlights from the Quarterly Report

Beyond the headline numbers, the earnings release outlined several positive indicators for Daktronics’s business trajectory:

• Robust Order Growth: New orders for the quarter increased 12.1% year-over-year to $199.1 million, indicating sustained customer demand.
• Record Backlog: The company enters the second half of its fiscal year with a product backlog of $320.6 million, a substantial 36% increase from the same period last year. This provides significant visibility into future revenue.
• Strong Cash Position: Daktronics ended the quarter with a net cash balance of $138 million and generated $42.6 million in cash from operations in the first six months of the fiscal year.
• Segment Performance: Strength was notably seen in the Live Events segment, with orders related to multiple Major League Baseball and Major League Soccer stadiums. The International and Transportation segments also reported order growth.
• Leadership Transition: The company announced the appointment of Ramesh Jayaraman as President and CEO, effective February 1, 2026, concluding a period with an interim chief executive.

Forward Outlook and Analyst Comparisons

Management reiterated its three-year financial objectives, which include:

• Annual sales growth of 7-10%
• Operating margins of 10-12%
• Return on invested capital (ROIC) of 17-20%

For the immediate next quarter (Q3 2026), analysts currently estimate revenue of approximately $194.0 million and EPS of $0.17. The company’s substantial backlog and continued order growth suggest it is positioned to work toward these near-term consensus figures. For the full 2026 fiscal year, the current analyst sales estimate stands at approximately $854.4 million.

Conclusion

Daktronics’s fiscal Q2 2026 results paint a picture of a company executing effectively on its growth and transformation plans. Beating revenue and profit estimates, while building a record backlog and strengthening its balance sheet, has been rewarded by the market with a sharp pre-market share price increase. The reiterated long-term targets provide a framework for sustained performance, though investors will watch for continued execution against near-term analyst estimates and the integration of new leadership.

For a detailed look at historical earnings, future estimates, and analyst projections for Daktronics, you can review the data here.

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