Daktronics' Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall

Daktronics DAKT shares fell 1.87% to close at $20.51 on Thursday following second-quarter fiscal 2026 results reported on Dec. 10. Earnings of 35 cents per share surpassed the Zacks Consensus Estimate by 29.63%. The earnings figure jumped 59.1% year over year.

Revenues were $229.3 million, up 10% year over year and beat the consensus mark by 9.09%. Orders increased 12.1% year over year to $199.1 million in the reported quarter. Product backlog jumped 35.8% year over year to $320.6 million. 

Daktronics shares have risen 16.4% in the past year, underperforming the Zacks Computer & Technology sector’s appreciation of 26%.

DAKT’s Q2 Segment & Order Details

Commercial revenues (22.1% of revenues) increased 16.8% year over year to $50.8 million. Live Events (35.5% of revenues) climbed 5.5% year over year to $81.5 million. International revenues (13% of revenues) jumped 64.2% year over year to $29.8 million. 

Daktronics, Inc. Price, Consensus and EPS Surprise

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

However, High School Park and Recreation revenues (20.1% of revenues) declined 4.4% year over year to $46 million. Transportation (9.3% of revenues) fell 0.9% year over year to $21.3 million in the reported quarter.

In terms of orders, the Commercial segment declined 5.1% year over year to $42.3 million. High School Park and Recreation orders fell 0.4% year over year to $35.7 million. 

Live Events orders increased 26.5% year over year to $89.2 million. DAKT booked large orders related to three more Major League Baseball (MLB) stadiums and three Major League Soccer stadiums in the second quarter of fiscal 2025. Daktronics plans to install five MLB stadium projects this spring. 

Transportation orders were $14.1 million, up 15.2% year over year, driven by airport and Intelligent Transportation Systems projects domestically. International orders increased 23.6% year over year to $17.9 million, with orders in the Middle East stadium, the United Kingdom advertising and Ireland transportation markets.

Daktronics’s Q2 Operating Highlights

Gross margin in the reported quarter was 27%, which expanded 20 bps year over year.

Total operating expenses of $40.3 million increased 0.4% year over year due to elevated selling expenses (up 9.2% year over year), product design and development expenses (up 6.1% year over year), somewhat offset by lower general and administrative expenses (down 11.5% year over year).

Non-GAAP operating income was $21.6 million, up 12.8% year over year.

Daktronics’ Balance Sheet Remains Strong

As of Oct. 31, 2025, Daktronics had cash and cash equivalents of $149.6 million.

Free cash flow was $36.1 million compared with $52.5 million reported in the year-ago quarter

DAKT’s Q3 Revenues to Grow Y/Y

For the third quarter of fiscal 2026, Daktronics expects year-over-year revenue growth despite a seasonally slower quarter due to the holidays.

The company has an overall objective of a decent operating margin of 10-12%, operating in the top quartile return on invested capital target of 17-20% and achieving a CAGR of 7% to 10% by fiscal 2028.

DAKT is adding manufacturing capacity in Mexico and in Ireland to improve flexibility and complement the 80% of product fulfilment currently completed in the U.S.

Zacks Rank & Stocks to Consider

Currently, Daktronics carries a Zacks Rank #3 (Hold).

Advanced Energy Industries AEIS, Digital Turbine APPS and Amphenol APH are some top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.  Each of the three sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Energy Industries' shares have appreciated 91.2% in the past year. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, up 1.63% over the past 30 days, implying growth of 67.9% 2024’s reported figure.

Digital Turbine shares have gained 246.2% over the trailing 12 months. The Zacks Consensus Estimate for APPS’ 2026 earnings is pegged at 33 cents per share, unchanged over the past 30 days. Digital Turbine reported earnings of 35 cents per share in fiscal 2025.

Amphenol shares have gained 88.9% in the past year. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.2% to $3.29 per share over the past 30 days, indicating year-over-year growth of 74.1%.

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