Strong Profits, New Incoming CEO Push Daktronics Stock Higher
Daktronics, Inc. (NASDAQ:DAKT) stock soared Wednesday after the company posted a fiscal second-quarter 2026 beat for the period ended November 1, 2025, driven by double-digit sales growth and improving operating profitability.
GAAP diluted EPS was 35 cents, up from 22 cents. Daktronics reported adjusted EPS of 35 cents, topping a 27-cent estimate, while sales of $229.253 million also exceeded a $214.077 million estimate.
Operating income increased to $21.563 million from $15.770 million, resulting in an operating margin of 9.4% compared to 7.6%. Net income was $17.481 million, compared with $21.406 million in the prior-year quarter.
Also Read: Noteworthy Insider Activity: Mark F Bowser Invests $84K In Daktronics Stock
Orders And Backlog Trends
Second-quarter new orders rose to $199.135 million from $177.590 million, and backlog increased to $320.6 million from $236.0 million.
Interim President and CEO Brad Wiemann stated that the company achieved its third consecutive quarter of top-line growth and its second consecutive quarter with operating income exceeding $20 million.
Gross margin edged up to 27.0% from 26.8%. The company cited order growth, backlog fulfillment, value-based pricing, structural cost reductions, and fixed-cost operating leverage as tailwinds, partially offset by higher tariff expense.
Segment Performance
By business unit, second-quarter net sales increased 16.8% in Commercial to $50.752 million and rose 5.5% in Live Events to $81.481 million. High School Park and Recreation declined 4.4% to $45.967 million, while Transportation slipped 0.9% to $21.274 million. International net sales jumped 64.2% to $29.779 million.
Orders increased 26.5% in Live Events to $89.228 million, rose 15.2% in Transportation to $14.076 million, and grew 23.6% in International to $17.872 million. Commercial orders fell 5.1% to $42.281 million, and High School Park and Recreation orders dipped 0.4% to $35.678 million.
For the first six months of fiscal 2026, Daktronics reported operating cash flow of $42.604 million and free cash flow of $36.142 million. Cash, restricted cash, and marketable securities totaled $149.604 million at November 1, 2025. Total current and long-term debt outstanding was $11.3 million, and the company reported $41.7 million available under its asset-based revolving credit facility.
Tariffs And Risk Management
On tariffs, Daktronics said it "remains agile" and is prepared to implement mitigation measures, including built-in protection clauses in contracts and a flexible component supply chain.
The company reiterated its three-year objectives of 7%–10% sales growth, 10%–12% operating margin, and 17%–20% ROIC, and said it is opening a facility in Mexico that it expects to be in production by the end of fiscal 2026.
Separately, Daktronics announced the appointment of Ramesh Jayaraman as president and CEO, effective February 1, 2026. Wiemann will continue as interim president and CEO through the fiscal third quarter ending January 31, 2026.
DAKT Price Action: Daktronics shares were up 16.14% at $20.87 at the time of publication on Wednesday, according to Benzinga Pro data.
Read Next:
Photo by MacroEcon via Shutterstock