June 24, 2026

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Daktronics, Inc. (NASDAQ: DAKT) reported fiscal fourth-quarter 2026 results above expectations, supported by strong sales growth, higher margins, improved profitability, record full-year sales, and a larger product backlog.
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Daktronics designs, manufactures, markets, and services large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems for live events, commercial, transportation, school, recreation, and international customers.
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The company reported adjusted EPS of $0.27, above estimates of $0.22, representing a 22.7% earnings surprise. Revenue came in at $208.61 million, above estimates of $205.27 million, with revenue growth of 20.9%.

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Results Showed Strong Sales and Margin Growth

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Fourth-quarter net sales increased 20.9% to $208.6 million from $172.6 million a year earlier.
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Growth was driven by Live Events, High School Park and Recreation, and Transportation, while Commercial and International sales were relatively flat.
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Gross profit increased to $58.5 million from $43.1 million. Gross margin improved to 28.0% from 25.0%, helped by value-based pricing, operational efficiencies, and a warranty provision recapture.
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Operating income was $14.1 million, compared with an operating loss of $1.7 million in the prior-year quarter. Operating margin improved to 6.8% from negative 1.0%.
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GAAP EPS was $0.17, compared with a loss of $0.19 last year. Adjusted EPS was $0.27, up from $0.18 a year earlier.

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Record Full-Year Sales and Orders

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For fiscal 2026, Daktronics reported record net sales of $838.7 million, up 10.9%.
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Full-year orders also reached a record $860.8 million, up 10.2% from fiscal 2025. Product backlog increased 4.3% to $356.2 million at year-end, giving the company a multi-quarter revenue pipeline heading into fiscal 2027.
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Full-year operating margin improved to 7.3% from 4.4%. Adjusted EPS increased to $1.05 from $0.84.
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Daktronics generated $49.2 million in cash from operations and ended the year with $131.6 million in cash and cash equivalents. The company also repurchased $25.4 million of stock during fiscal 2026.

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The Bigger Picture

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Daktronics delivered a strong finish to fiscal 2026.
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The company beat earnings and revenue expectations, posted record full-year sales and orders, expanded margins, and ended the year with a larger backlog. Management also said it remains on track toward its fiscal 2028 targets of 7% to 10% revenue CAGR, 10% to 12% operating margin, and 17% to 20% ROIC.
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