Daktronics 2026 Q2 Earnings Earnings Decline as Net Income Drops 18.3%

Daktronics (DAKT) reported fiscal 2026 Q2 results on Dec. 10, 2025, with revenue beating estimates and EPS outperforming forecasts. The company maintained its growth guidance despite seasonal Q3 softness, citing a $321M backlog and strategic manufacturing expansion.

Revenue

Daktronics’ total revenue rose 10.0% year-over-year to $229.25 million, driven by strong performance across key segments. The Live Events division led with $81.48 million in revenue, reflecting robust demand for large-scale installations. Commercial and High School Park & Recreation segments contributed $50.75 million and $45.97 million, respectively, while International revenue grew 64% to $29.78 million. Transportation revenue stood at $21.27 million, rounding out the diversified performance.

Earnings/Net Income

The company’s EPS declined 21.7% to $0.36 in 2026 Q2 from $0.46 in 2025 Q2, while net income fell 18.3% to $17.48 million. The earnings dip underscores margin pressures despite top-line growth, highlighting challenges in maintaining profitability amid rising tariff expenses.

Price Action

Post-earnings, Daktronics’ stock surged 7.18% in a single trading day, 16.24% weekly, and 11.23% month-to-date.

Post-Earnings Price Action Review

The stock’s post-earnings rally reflects investor confidence in Daktronics’ strategic initiatives and robust backlog. A 10.63% pre-market jump followed the Q2 results, driven by outperforming revenue and EPS figures. Analysts noted the 36% year-over-year backlog growth as a key catalyst, despite near-term margin headwinds. The stock’s trajectory aligns with broader optimism around the Mexico facility expansion and digital transformation efforts.

CEO Commentary

Interim CEO Brad Wiemann highlighted “exemplary execution” in manufacturing and installations, with 26.5% order growth in Live Events and 23.6% in International markets. He emphasized the Saltillo, Mexico facility as a strategic lever for production agility, while acknowledging dynamic tariff challenges. The $321M backlog, up 36% YoY, provides a multi-quarter revenue runway, though the team remains cautious about Q3 seasonal softness.

Guidance

Daktronics expects continued revenue growth despite Q3 holiday-driven slowdowns, targeting operating margins of 10-12.5%. The $321M backlog and $138M cash balance support capital optimization, including $25.7M in share repurchase capacity. The Mexico facility, set to launch in April 2026, aims to enhance production flexibility, with further details to be shared at the Q3 investor day.

Additional News

Daktronics announced the appointment of Ramesh Jayaraman as CEO and President in early 2026, marking a leadership transition aligned with its digital transformation. The company also unveiled a new manufacturing facility in Saltillo, Mexico, to broaden its global footprint and optimize production. Additionally, Daktronics secured $25.7M in share repurchase capacity, signaling confidence in capital allocation and shareholder returns.