Daktronics, Inc. (NASDAQ:DAKT) surged 8.01% on Wednesday after the digital display maker reported fiscal second-quarter results that exceeded analyst expectations, fueled by solid revenue gains and stronger profitability.
For the quarter ending November 1, 2025, the company posted adjusted earnings of $0.35 per share, topping the consensus estimate of $0.29. Revenue rose 10% year over year to $229.3 million, surpassing projections of $217.43 million and marking the firm’s third straight quarter of sequential revenue growth.
“We delivered another solid quarter of revenue and profit expansion, representing our third consecutive quarter of top-line growth and our second quarter of driving operating income over $20 million,” said Brad Wiemann, Daktronics’ Interim President and CEO.
Operating income climbed 36.7% from the prior year to $21.6 million, lifting operating margin to 9.4% compared with 7.6% a year earlier. New orders grew 12.1% to $199.1 million on robust demand across nearly all business lines, especially Live Events, Transportation, and International divisions.
Daktronics’ backlog expanded 36% year over year to $320.6 million, giving the company what leadership described as a “multi-quarter revenue runway.” It closed the quarter with $138 million in net cash.
“Our three-year transformation initiatives are supporting greater efficiencies and higher profitability,” Wiemann added. “We remain on track to achieve our three-year plan objectives of a 7-10% CAGR in revenue growth, 10-12% operating margin and 17-20% ROIC.”
The company also revealed plans to open a manufacturing site in Mexico by the end of fiscal 2026, expanding its production footprint and enhancing operational efficiency. In addition, Daktronics recently named Ramesh Jayaraman as its next President and CEO, with his tenure beginning February 1, 2026.