1. DAKT reported 36.7% year-over-year profit growth in Q2 2026. 2. Orders and sales increased, contributing to a product backlog rise of 36%. 3. Strong demand noted in Live Events and Transportation sectors. 4. Operating margin improved to 9.4%, up from 7.6% year-over-year. 5. New CEO Ramesh Jayaraman will lead from February 2026.
FAQ
Why Bullish?
DAKT's significant revenue and profit growth indicate strong market demand. Historical trends show that consistent revenue increases have positively impacted stock prices.
How important is it?
Robust financial growth and strategic leadership transitions are highly relevant for investors. Proven operational efficiencies signal a potential rise in stock price.
Why Short Term?
Immediate positive financial performance and leadership changes could drive stock price up quickly, as seen in previous transitions leading to improved operational outcomes.
Daktronics, Inc. Announces Strong Fiscal 2026 Second Quarter Results
BROOKINGS, S.D., Dec. 10, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ: DAKT), a leader in dynamic video communication displays, has reported impressive financial results for its fiscal 2026 second quarter, which ended on November 1, 2025. With significant year-over-year growth in operating profit, revenues, and orders, Daktronics is on track to continue its business transformation initiatives.
Fiscal Q2 2026 Financial Highlights
In the second quarter of fiscal 2026, Daktronics achieved:
- Operating income: Increased to $21.6 million, compared to $15.8 million for Q2 of fiscal 2025.
- Operating margin: Rose to 9.4%, compared to 7.6% in the same period last year.
- Sales: Reported at $229.3 million, a notable rise from $208.3 million in Q2 fiscal 2025.
- New orders: Totaling $199.1 million, up from $177.6 million year-over-year.
- Product backlog: Increased to $320.6 million, a 36% rise from the prior year's second quarter.
- Ending net cash balance: $138 million.
Interim Leadership Perspectives
Brad Wiemann, Interim President and Chief Executive Officer of Daktronics, emphasized the company's sustained revenue and profit growth: “We delivered another solid quarter, representing our third consecutive quarter of top-line growth and our second straight quarter exceeding $20 million in operating income." He highlighted an increase in orders driven by substantial projects in both the Live Events and Transportation sectors, including significant contracts with Major League Baseball and Major League Soccer stadiums.
Strategic Business Outlook
As it enters the second half of the fiscal year, Daktronics is poised to expand its market opportunities and enhance its product offerings. The company is focused on:
- Increasing its indoor and outdoor product lines.
- Investing in software services and control systems.
- Executing on its business and digital transformation strategies.
Wiemann also noted the importance of maintaining a flexible supply chain and a diversified global manufacturing footprint to address potential tariff impacts effectively.
Future Leadership and Corporate Changes
In a strategic move, Daktronics has appointed Ramesh Jayaraman as President and Chief Executive Officer, effective February 1, 2026. Wiemann will remain in his current role until the end of the third fiscal quarter. Upon his arrival, Jayaraman will be appointed to the Board of Directors, succeeding Reece Kurtenbach, who will step down.
Key Financial Performance for Q2
Howard Atkins, Acting Chief Financial Officer, remarked on the quarter's achievements: “Q2 was a solid quarter with double-digit growth in new orders, revenue, and operating profit." Key metrics for the quarter include:
- Order growth: Increased by 12.1% year-over-year, driven by strong demand in multiple business units.
- Net sales growth: Increased by 10.0% compared to Q2 fiscal 2025.
Overall, Daktronics is well-positioned to continue its growth trajectory in the upcoming quarters, with a solid backlog and strategic initiatives supporting its objectives of achieving a 7-10% CAGR in revenue growth, a 10-12% operating margin, and a 17-20% return on invested capital (ROIC).