Daktronics to Report Q2 Earnings: What's in Store for the Stock?

Daktronics DAKT is set to release second-quarter fiscal 2026 results on Dec. 10, 2025.

The Zacks Consensus Estimate for revenues is pegged at $210.2 million, suggesting growth of 0.87% from the figure reported in the year-ago quarter.

The consensus mark for earnings remained at 27 cents per share over the past 30 days. The company reported earnings of 8 cents in the year-ago quarter.

Daktronics' earnings beat the Zacks Consensus Estimate in the previous quarter, missed in a couple of quarters and were in line in the remaining one, with a negative earnings surprise of 26.08%, on average.
 

Daktronics, Inc. Price and EPS Surprise

Daktronics, Inc. price-eps-surprise | Daktronics, Inc. Quote

Let’s see how things have shaped up for this announcement.

Factors Likely to Influence Q2 Results

Daktronics ' fiscal second-quarter results are expected to benefit from strong customer demand for live events (orders increased 81% year over year and 10% sequentially in the first quarter of fiscal 2026). Robust High School Park and Recreation business and international projects bode well for DAKT. The company won three major league sports projects in the previous quarter, together with several college and university projects. The momentum is expected to have continued in the to-be-reported quarter.

Daktronics’ expanding portfolio and service offerings for live events, both for in-bowl and outside the bowl, are expected to have driven top-line growth. Strong international business is also noteworthy, driven by strong demand for indoor solutions. Momentum in the High School Park and Recreation is expected to remain strong in the to-be-reported quarter, driven by solid demand for professional services.

Gross margin is expected to have benefited from improved pricing, a favorable revenue mix and stringent cost control. The business and digital transformation plan remains on track and is expected to benefit DAKT’s fiscal second-quarter results. However, high spending related to digital transformation work is scheduled to have negatively impacted margins in the to-be-reported quarter. Uncertainty surrounding tariff-related expenses has been a concern.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Daktronics has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Micron Technology MU currently has an Earnings ESP of +2.46% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Micron Technology shares have jumped 130.7% in the past 12-month period. It is slated to report first-quarter 2026 results on Dec.17, 2025.

Synopsys SNPS currently has an Earnings ESP of +0.46% and a Zacks Rank #2 at present. 

Synopsys shares have slumped 8.2% in the past year. It is set to report its fourth-quarter fiscal 2025 results on Dec. 10, 2025.

FactSet Research System FDS currently has an Earnings ESP of +1.77% and a Zacks Rank #3 at present. 

FactSet shares have dropped 39.2% in the past year. It is set to report its first-quarter fiscal 2026 results on Dec. 18, 2025.

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This article originally published on Zacks Investment Research (zacks.com).

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