Daktronics, Inc. (NASDAQ:DAKT) reported fiscal 2026 second‑quarter results that surpassed consensus estimates, with revenue of $229.3 million and diluted earnings per share of $0.35, a $0.08 beat over the $0.27 consensus.
The revenue increase of 10.0% versus the prior year was driven by a 12.1% rise in new orders, which grew to $199.1 million from $177.6 million. The company’s operating income rose to $21.6 million, up 36.7% YoY, and operating margin expanded to 9.4% from 7.6% in Q2 FY2025, reflecting higher pricing power and improved operational leverage.
New orders and a robust backlog—$320.6 million, up 36% from $236.0 million a year earlier—provide a multi‑quarter revenue runway. Cash, restricted cash, and marketable securities totaled $149.6 million, and after accounting for $11.3 million of debt, the net cash balance was approximately $138 million, underscoring strong liquidity.
Management reiterated its three‑year transformation plan, reaffirming revenue growth of 7‑10% CAGR, operating margin of 10‑12%, and ROIC of 17‑20%. The company also confirmed the appointment of Ramesh Jayaraman as President and CEO effective February 1 2026, signaling continuity in leadership as the firm pursues its strategic objectives.
Brad Wiemann, interim President and CEO, said the quarter demonstrated “another solid period of revenue and profit expansion, driven by a third consecutive quarter of top‑line growth and a second quarter of operating income over $20 million.” He added that the company’s “three‑year transformation initiatives are supporting greater efficiencies and higher profitability,” and that the backlog “provides a multi‑quarter revenue runway.”
The market reacted positively, with analysts noting the earnings beat and margin expansion as evidence of effective execution of the company’s digital transformation and pricing strategy. The strong order pipeline and backlog growth reinforce confidence in future revenue visibility, while the leadership transition is viewed as a smooth continuation of the firm’s strategic trajectory.
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